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With one of its key focus cities being Las Vegas, Allegiant Air claims that flights to Sin City from certain markets are not making money for the airline, even if the airplane is completely full.
Case in point, Pueblo, Colorado.
The Chieftain newspaper noted:
AllegiantAir's twice-a-week flights from Pueblo to Las Vegas are nearly full each trip, but those customers aren't ordering the rental cars, hotel rooms and entertainment packages that are the airline's real source of profit
Dave Cardinal, from the city's Airport Advisory Committee, briefed council that he'd met with Allegiant senior executives and was told that the Pueblo-to-Las Vegas flights are not producing the money the airline wants — especially if Allegiant is expected to expand its Pueblo air service to Phoenix as well.
Cardinal said Allegiant actually loses money on its per passenger costs on each flight, but expects to make money on the commissions it gets for linking passengers to hotel rooms, car rentals and Las Vegas shows. A visit to the airline's website illustrates all of the other services it sells.
Allegiant is more of a travel company than it is an airline. It relies heavily on package deals in order to offset the low cost fares.
Mark Lovin, the city's airport manager, said the city will need to do a beterjob in marketing to make it profitable for Allegiant to serve Pueblo.
- Aaron Goldstein, Gambling911.com
