Allegiant Air has benefited from its hometown of Las Vegas as some of its biggest competitors retreated in Sin City.
At the city’s Harry Reed International Airport (LAS), Allegiant seats were flattened year by year in the fourth quarter, while its rivals Frontier Airlines and Spirit Airlines fell 13% and 53%, respectively, from data from aviation analytics company Cirium Shows, respectively.
Even Delta, the second largest airline behind Southwest, will terminate flights to two California airports – Sacramento International Airport (SMF) and San Jose Menetta International Airport (SJC) in January 2026.
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“Year after year, we’ve improved our performance at Allegiant and our margins have improved,” Allegiant CEO Gregory Anderson said in an interview with TPG in Washington, D.C. on Wednesday.
The question now is whether Allegiant will take action to capture some of the people who are sharing LAS are ceding. Spirit said it will end services to eight airports from Lars, including Albuquerque International debut (ABQ), Boise Airport (BOI) and Oakland San Francisco Bay Airport (OAK).
Allegiant serves only one route from Las-Boi, but Anderson has not overlooked the possibility that airlines can increase flights in other markets.
“We will continue to strengthen our relative position,” he said.
After the pandemic on the 19th, the airline industry experienced a period of turmoil. Frontier adjusted the schedule and improved its in-flight products to attract more profitable business and high-end leisure travelers. The August Spirit filed for Chapter 2, Chapter 11, in less than a year, and promised to develop a difficult roadmap, fleet and cost decisions.
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Houston Fight Avelo Airlines, which just ordered up to 100 new industrial planes, said the airline said in July it would end all flights on the West Coast by December.
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Allegiant has taken action in one of Avelo’s upcoming markets: Hollywood Burbank Airport (BUR). Flights for Bellingham International Airport (BLI) at Washington and Provo Airport (PVU) in Utah start in January.
Back in Las Vegas, Las Vegas Convention and Visitors Administration data shows that the city’s visitor numbers fell 7% in the first six months of the year. The number of visitors in the city has dropped by 7% compared to 2024. Hotel nights dropped by about 6%.
Anderson acknowledged the decline, but described the transformation as “a story of two cities.”
“Like Wynn, they have record-breaking years, and then you can – due to the lack of better terminology – the lower level nature, you start to see them struggling a lot.”
Like its competitors, Allegiant has been on the market slightly in recent years. By the end of the year, its most popular long extracurricular economy offers an additional fleet that will offer its 75% fleet, and Anderson said onboard Wi-Fi is “when, if not” without providing additional details.
While Allegiant’s breadcrumb market is a cost-conscious casual flyer, Anderson is optimistic about its prospects in Ruth.
“Las Vegas is resilient,” he said. “I believe it will continue to strengthen and go back to what we have seen in history.”
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