Allegiant Travel
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.06%.
Did ALGT Beat Earnings? Q4 2025 Results
Allegiant Travel delivered a sharply stronger-than-expected fourth quarter, posting adjusted EPS of $2.72 against a consensus estimate of $1.99, a beat of 36.48%, while revenue of $656.19 million edged past the $646.40 million estimate and grew 4.5% year over year. The headline driver was a dramatic swing back to profitability, with GAAP net income of $31.94 million compared to a net loss of $216.23 million in Q4 2024, a turnaround aided by the absence of the Sunseeker Resort-related charges that overwhelmed the year-ago period. With the resort now sold, Allegiant operates as a pure-play leisure airline, and the underlying business showed real momentum, with airline-only CASMex falling 3.4% in the quarter as the expanding Boeing 737 MAX fleet, which carries roughly a 20% fuel burn advantage over legacy Airbus frames, drove meaningful cost improvement. The stock has climbed sharply since the report, reflecting investor confidence in management's full-year 2026 guidance for adjusted EPS exceeding $8.00, representing approximately 60% growth, alongside the proposed acquisition of Sun Country Airlines.
- Strong leisure demand acceleration in December driving nearly six-point sequential improvement in year-over-year unit revenue
- 6.1% full-year reduction in adjusted airline-only CASMex
- 737 MAX aircraft delivering 10-20% better per-hour economics versus top A320 lines
- Load factor improvement of 1.0 percentage point year-over-year to 81.2%
- Cobrand credit card remuneration of $36.2M in Q4, $139.6M for full year
- Controllable completion factor of 99.9%
- 10.5% scheduled service capacity growth year-over-year
“We closed out 2025 with meaningful momentum, and I'm extremely proud of how the team executed. We delivered a 12.9 percent adjusted airline-only operating margin in the fourth quarter, exceeding our initial guidance, despite the impact of the government shutdown. Demand accelerated sharply in December, driving a nearly six-point sequential improvement in year-over-year unit revenue versus the third quarter. At the same time, our relentless focus on efficiency produced more than a six percent reduction in unit costs for the full year, which we believe led the industry.”
Allegiant Travel CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Allegiant guides for system ASMs down approximately 5.7% year-over-year, fuel cost per gallon of $2.60, adjusted operating margin of 12.0% to 15.0%, and adjusted EPS of $2.50 to $3.50. For full-year 2026, the company expects system ASMs roughly flat (down ~0.5%), fuel cost per gallon of approximately $2.50, adjusted EPS exceeding $8.00 (approximately 60% growth year-over-year), total CapEx of approximately $750 million including $570-$590 million aircraft-related, $80-$90 million deferred heavy maintenance, and $80-$90 million other CapEx. The company expects to place 9 Boeing 737 MAX aircraft in service and retire 9 Airbus aircraft in 2026. Guidance excludes any contribution from the planned Sun Country acquisition.
ALGT YoY Financials
ALGT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.