Allegiant Air Thrives in Las Vegas Amid Competitor Retreats

Allegiant Air is experiencing significant growth in its home base of Las Vegas, as some of its major competitors scale back operations in the city. At Harry Reid International Airport (LAS), Allegiant’s seat capacity remains steady year-over-year for the fourth quarter, while rival airlines like Frontier Airlines and Spirit Airlines have seen reductions of 13% and a staggering 53%, respectively, according to data from aviation analytics firm Cirium.

Even Delta Air Lines, the second-largest carrier at LAS after Southwest Airlines, plans to discontinue flights to two California airports—Sacramento International Airport (SMF) and San Jose Mineta International Airport (SJC)—starting in January 2026. This shift opens the door for Allegiant to potentially capture market share that other airlines are relinquishing.

Gregory Anderson, CEO of Allegiant, highlighted the airline’s improved performance and margins in Las Vegas during an interview with TPG in Washington, D.C. “Year over year, our performance in Vegas at Allegiant has improved,” he stated. This raises the question of whether Allegiant will seize the opportunity to expand its services in the markets left behind by competitors. Earlier this month, Spirit announced it would cease operations at eight airports from LAS, including Albuquerque International Sunport (ABQ), Boise Airport (BOI), and Oakland San Francisco Bay Airport (OAK). Allegiant currently operates flights on the LAS-BOI route but has not ruled out adding more flights in other markets.

The airline industry has been undergoing significant changes since the COVID-19 pandemic, with Frontier adjusting its schedules and enhancing its onboard offerings to attract a more lucrative customer base. Spirit recently filed for its second Chapter 11 bankruptcy in under a year, indicating a need for tough decisions regarding its route map, fleet, and costs.

Avelo Airlines, another low-cost carrier based in Houston, recently announced it would terminate all West Coast flights by December, while also ordering up to 100 new Embraer jets. In response, Allegiant has already begun to enter one of Avelo’s upcoming former markets: Hollywood Burbank Airport (BUR), with new flights to Bellingham International Airport (BLI) in Washington and Provo Airport (PVU) in Utah set to launch in January.

Despite the competitive landscape, recent data from the Las Vegas Convention and Visitors Authority reveals a 7% decline in visitors to the city during the first half of the year compared to 2024, with hotel nights down approximately 6%. Anderson acknowledged this decline but described it as a “tale of two cities.” He noted that while premier properties like the Wynn are experiencing record years, lower-tier hotels are facing challenges.

In recent years, Allegiant has slightly shifted its market focus, moving upmarket to attract a broader customer base. The airline’s popular extra-legroom economy offering, Allegiant Extra, is expected to be available on 75% of its fleet by the end of the year. Additionally, Anderson indicated that inflight Wi-Fi is on the horizon, stating it is a “when, not if” scenario, although he did not provide specific details.

While Allegiant primarily serves cost-conscious leisure travelers, Anderson remains optimistic about the airline’s prospects at LAS. “Vegas is resilient,” he asserted. “I believe it’ll continue to strengthen and get back to what we’ve seen historically.”

For travelers looking to explore Las Vegas, Allegiant Air’s growth presents an opportunity to enjoy affordable flights to and from the city. As the airline continues to adapt and expand its offerings, it can provide options for both seasoned travelers and those venturing to Las Vegas for the first time.

In conclusion, Allegiant Air is poised to capitalize on the retreat of its competitors in Las Vegas, making it an attractive option for travelers seeking budget-friendly flights. With a commitment to enhancing its services and expanding its route network, Allegiant is well-positioned to thrive in the evolving airline landscape. As the travel industry continues to recover, Allegiant’s focus on customer experience and operational efficiency will likely play a crucial role in its ongoing success.