Allegiant Travel
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.89%.
Did ALGT Beat Earnings? Q3 2025 Results
Allegiant Travel fell short of Wall Street's expectations in Q3 2025, posting an adjusted loss of $2.09 per share against a consensus estimate of $1.80, a miss of 16.42%, as revenue of $561.93 million trailed the $577.76 million estimate by 2.74% and came in essentially flat year-over-year, down just 0.1%. The headline numbers reflected a quarter shaped by competing forces: airline capacity grew 9.7% in available seat miles and carried 8.8% more passengers, but total revenue per available seat mile fell 8.4% to 11.19 cents as pricing could not keep pace with the capacity expansion. A pivotal strategic shift came with the September closing of the Sunseeker Resort sale for $200 million, fully exiting hospitality and concentrating the business on its airline core. Cost discipline provided meaningful offset, with adjusted CASM excluding fuel declining 4.7% year-over-year to 8.47 cents. Looking ahead, management raised full-year 2025 adjusted consolidated EPS guidance to more than $3.00, and guided Q4 adjusted EPS of $1.50 to $2.50, citing strengthening leisure demand heading into the holiday season.
- CASM excluding fuel down 4.7% year-over-year in Q3, nearly 7% year-to-date
- Peak aircraft utilization up 20% year-to-date approaching 2019 records
- Efficient capacity growth without adding aircraft or personnel
- 9.7% ASM growth matched by 10.0% utilization increase
- Navitaire conversion benefits lifting load factors
- Average fuel cost per gallon declined to $2.56 from $2.69 year-over-year
- Co-brand credit card remuneration of $34M in Q3, $103.4M year-to-date
“The airline has always been Allegiant's central focus, and I'm proud of how Team Allegiant continues to execute at a high level. At an airline, everything begins and ends with running a safe and reliable operation. Impressively, we maintained our industry-leading controllable completion factor of 99.9 percent during the quarter while flying nearly 33,000 departures and transporting 4.6 million passengers - both marking third-quarter records.”
Allegiant Travel CEO, on the earnings call
Forward Guidance & Outlook
Allegiant raised its full-year 2025 guidance, now expecting adjusted airline-only EPS of more than $4.35 per share and adjusted consolidated EPS of more than $3.00 per share. For Q4 2025, the company guides for an adjusted operating margin of 10.0% to 12.0% and adjusted EPS of $1.50 to $2.50. System ASMs are expected to grow approximately 9.5% year-over-year in Q4 and approximately 12.5% for the full year. Fuel cost is guided at approximately $2.55 per gallon. Full-year airline capital expenditures are expected at $260-280 million for aircraft-related items, $50-70 million for deferred heavy maintenance, and $95-115 million for other airline capex. The company plans flattish capacity in 2026, focusing on network optimization and productivity gains. The MAX fleet will represent over 20% of ASMs in 2026.
ALGT YoY Financials
ALGT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.