In the fall of 2001, Allegiant exited bankruptcy and the case was officially closed in early 2002. In March 2002, Allegiant entered into a long-term contract with Harrah's to provide charter services to its casinos in Laughlin and Reno, Nevada. At the same time, the airline acquired its first McDonnell Douglas MD-80 jetliner. From 2002 through 2004, the airline developed its scheduled-service business model. By 2004, Allegiant was flying from 13 small cities to Las Vegas offering bundled air and hotel packages.
On January 11, 2007, Frontier Airlines signed an 11-year service agreement with Republic Airlines. Under the agreement, Republic was to operate 17, 76-seat Embraer 170 aircraft for the former Frontier JetExpress operations. At the time the contract was canceled in April 2008, Republic Airlines operated 11 aircraft for Frontier Airlines, with the remaining six aircraft expected to join the fleet by December 2008. With the integration of Republic aircraft, the 'JetExpress' denotation was removed. Subsequent to the cessation of Horizon's services for Frontier in December 2007, all flights operated by Republic were sold and marketed as "Frontier Airlines, operated by Republic Airlines." The first market created specifically for the Embraer 170 was Louisville, Kentucky, which began on April 1, 2007. Service to Louisville was suspended in August 2008 but restarted in April 2010.
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While its financial performance started showing signs of improvement, in February 2007, jetBlue faced a crisis, when a snowstorm hit the Northeast and Midwest, throwing the airline's operations into chaos. Because jetBlue followed the practice of never cancelling flights, it desisted from calling flights off, even when the ice storm hit and the airline was forced to keep several planes on the ground. Because of this, passengers were kept waiting at the airports for their flights to take off. In some cases, passengers who had already boarded their planes were kept waiting on the apron for several hours and were not allowed to disembark. However, after all this, the airline was eventually forced to cancel most of its flights because of prevailing weather conditions. The fiasco reportedly cost JetBlue $30 million.
In October 2005, JetBlue's quarterly profit had plunged from US$8.1 million to $2.7 million largely due to rising fuel costs. Operational issues, fuel prices, and low fares, JetBlue's hallmark, were bringing its financial performance down. In addition, with higher costs related to the airline's numerous amenities, JetBlue was becoming less competitive.
In March 2011, Allegiant took over charter service to Wendover Airport for Peppermill Casinos, Inc. to shuttle customers to Peppermill's three casinos in West Wendover, Nevada; the Montego Bay Resort, the Rainbow Wendover and the Peppermill Wendover. Allegiant based one 150-seat, MD-80 series jet aircraft in Wendover and more than 20 employees, including maintenance, flight crews and stations personnel.