Originally Posted by
KC135
You say AAY is no less volnerable yet they, along with WN were the only airlines to make a profit throughout the complete last recession which speaks for itself. They have a few competitive advantages to help with that while you could argue WN only weathered the storm in the black because they hedged their fuel. I've never seen a small airline in history have 80% of their routes with zero competition and the highest profit margins for any airline. There isn't much else in common with historic airlines other than the size of the airline and previous maintenance issues.
WN got lucky with fuel hedges, yes, and AAY with union free, cheap labor, low overhead and cheap MD-80s. No longer the case with either. A previous poster listed in article regarding ancillary revenue, another major contributor to Allegiant's early success, Hotel rooms and rental cars reportedly now becoming less of a revenue source. Everyone faces headwinds and shifting circumstances But As I said, great business plan. If AAY sticks to it and stays out of the bloodbath routes, it'll probably continue to thrive.