Allegiant Travel
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.07%.
Did ALGT Beat Earnings? Q2 2025 Results
Allegiant Travel delivered a sharp earnings beat in Q2 2025, with adjusted diluted EPS of $1.23 clearing the $0.85 consensus estimate by 45.15% and revenue of $689.38 million edging past forecasts by 0.73% on 3.5% year-over-year growth, as aggressive cost discipline and surging aircraft utilization more than offset a tough demand environment. The standout driver was an operational overhaul that pushed adjusted airline-only CASM excluding fuel down 6.7% year-over-year to 7.68 cents, while the airline flew its highest-ever quarterly departure count of 37,000 with a 99.9% controllable completion factor. A $103.30 million write-down tied to the pending $200 million Sunseeker Resort sale clouded the GAAP picture, producing a consolidated net loss of $65.17 million, but management is clearly pivoting back to its core airline business. Expansion of the Allegiant Extra premium seating product is gaining traction as a revenue lever, with ancillary charges per passenger rising 3.4%. Looking ahead, the company guides full-year 2025 adjusted consolidated EPS above $2.25, with roughly 12% system capacity growth expected to support longer-term margin improvement.
- Aircraft utilization up ~17% year-over-year
- Adjusted airline-only CASM excluding fuel down 6.7% YoY to 7.68 cents
- 99.9% controllable completion factor
- Capacity growth of 15.7% YoY in ASMs
- Average fuel cost per gallon down 14.5% YoY to $2.42
- Ancillary revenue per passenger improved $3 in first half 2025
- Navitaire revenue headwinds fully recovered with incremental $1/pax benefit beginning
- 737 MAX aircraft accounted for ~10% of ASMs in Q2, expected >15% by year end
- Fleet count and personnel remained flat despite capacity catch-up
“During the quarter, we operated 37,000 flights — the highest quarterly total in company history. Equally important, we achieved a remarkable 99.9% controllable completion factor, which we believe is among the top in the industry. I'm incredibly proud of Team Allegiant for delivering such strong operational results. Due to their efforts, our airline has earned a second consecutive SkyTrax Award for best low-cost carrier in North America.”
Allegiant Travel CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025, Allegiant guides adjusted airline-only operating margin of (3.0%) to (6.0%), adjusted airline-only EPS of ($1.25) to ($2.25), and adjusted consolidated EPS of ($1.75) to ($2.75), reflecting seasonal weakness. System ASMs are expected to grow ~9% YoY with scheduled service ASMs ~10% and fuel cost per gallon of ~$2.55. For full-year 2025, system ASMs are guided to grow ~12%, scheduled service ASMs ~13%, fuel ~$2.53/gallon, adjusted airline-only EPS >$3.25, and adjusted consolidated EPS >$2.25. Full-year airline CapEx is guided at $260M-$280M for aircraft-related, $50M-$70M for deferred heavy maintenance, and $95M-$115M for other airline items. For 2026, capacity is expected to be roughly flat YoY with margin expansion driven by maturing routes, Allegiant Extra on 70%+ of fleet, credit card remuneration exceeding $140M, and MAX aircraft comprising >20% of ASMs.
ALGT YoY Financials
ALGT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.