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Allegiant To End Cuba Charter Business

top story photo Allegiant Travel Company's Allegiant Air subsidiary will stop flying charters to Cuba, the carrier announced.

"While our Cuba flying has been and continues to be profitable, these programs are exposing the airline and its people to operational complexity inconsistent with our operating philosophy," said Maurice J. Gallagher, Jr., Allegiant Travel Company CEO. "Keeping things simple is a key attribute of our business model and since we are not short of profitable opportunities consistent with operational simplicity, we decided the sensible thing was to remain true to our proven operating philosophy and return our people and aircraft to such efforts."

The charters, which Allegiant started earlier this summer, were flown as part of a U.S. government program open to eligible travelers. Allegiant flew for five different charter sponsors.

Meanwhile, Allegiant released updated guidance for investors. The carrier expects third quarter 2009 year-over-year departure growth of approximately 35 percent and available seat mile (ASM) growth of approximately 40 percent. In the fourth quarter, year-over-year departure growth of approximately 12 percent and ASM growth of approximately 18 percent is expected.

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