Allegiant Reports Second-Quarter Adjusted Earnings of $1.23 Per Share; Operated Record 37,000 Flights

Aug. 6, 2025

— Jeff Ward, Lehigh Valley News Briefs

Allegiant, the dominant passenger carrier from Lehigh Valley International Airport, operated a company-record 37,000 flights in its second quarter.

The Las Vegas-based airline reported quarterly earnings Monday, posting adjusted earnings of $22.7 million, or $1.23 per share.

Allegiant recorded charges of $102.2M during the second quarter related to the pending sale of Sunseeker Resort in Florida and a golf course. Under Generally Accepted Accounting Principles (GAAP), which do not allow for the exclusion of one-time charges, the company posted a second-quarter loss of $3.62.

Sunseeker did not fit into Allegiant’s plans, Chief Executive Officer Gregory Anderson said in the earnings statement.

“Our team is simplifying the business and focusing on our core strengths, as evidenced by the pending sale of our Sunseeker Resort, which is expected to close shortly.  We will continue to take actions to structurally lower our airline costs,” Anderson said.

There are signs that demand is increasing, Anderson said, but with this caveat: “Keep in mind, however, that third quarter remains our seasonally weakest quarter of the year given the last few weeks of August and most of September represent the lowest period for leisure travel during the year.”

Perhaps it’s time for me to check Allegiant’s website for deals. The airline recently added routes, including one from LVIA.

The closing price of shares of Allegiant (NASDAQ:ALGT) Tuesday was $48.87. The airline carries Lehigh Valley travelers to Sunbelt destinations in South Carolina and Florida, and to Nashville, Tennessee, and Denver.

I’ve flown on Allegiant several times and found their flight attendants to be among the most pleasant of any airline.

Here is a link to Monday’s earnings report and below is a partial cut-and-paste version that omits the tables, which don’t fit well into this format:

Allegiant Travel Company Second Quarter 2025 Financial Results

08/04/2025

Second quarter 2025 GAAP diluted loss per share of $(3.62)

Second quarter 2025 adjusted airline-only diluted earnings per share of $1.86⁽¹⁾⁽²⁾

Second quarter 2025 adjusted diluted earnings per share of $1.23⁽¹⁾⁽²⁾

LAS VEGAS, Aug. 4, 2025 /PRNewswire/ — Allegiant Travel Company (NASDAQ: ALGT) today reported the below financial results for second quarter 2025, as well as comparisons to the prior year.

“During the quarter, we operated 37,000 flights — the highest quarterly total in company history,” stated Gregory Anderson, chief executive officer of Allegiant Travel Company. “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.

“One of the hallmarks for Allegiant is our ability to deliver great service at an affordable price. We achieved an adjusted airline-only operating margin of 8.6% in the second quarter, surpassing our initial projections. Despite a challenging demand environment, our first-half operating margin improved over 2024. This improved performance is the result of higher productivity of our existing assets with aircraft utilization up nearly 17 percent year over year combined with strong cost controls. Impressively, we drove an industry leading reduction in unit costs, excluding fuel and special charges, of nearly eight percent year over year. 

“Our commercial initiatives are gaining traction and yielding measurable outcomes. With the revenue headwinds associated with Navitaire behind us now, we are starting to take advantage of its ability to accelerate enhancements. These new pricing tools, in addition to product evolutions and Allegiant Extra expansion, have helped to increase ancillary revenue, as evidenced by our $3 per passenger improvement during the first half of 2025. Further improvements are anticipated as we move ahead with our focused digital transformation within our core business.

“We are encouraged by improving consumer confidence and are cautiously optimistic as recent bookings suggest strengthening of domestic demand in the second half of the year, as compared to previous levels. Keep in mind, however, that third quarter remains our seasonally weakest quarter of the year given the last few weeks of August and most of September represent the lowest period for leisure travel during the year.

“Our team is simplifying the business and focusing on our core strengths, as evidenced by the pending sale of our Sunseeker Resort, which is expected to close shortly.  We will continue to take actions to structurally lower our airline costs. Importantly, cost improvements made this year have allowed us to rebalance our infrastructure, particularly considering the significant MAX aircraft delivery delays in prior years.

“As we look to 2026, we are currently forecasting full-year capacity to be roughly flat on a year-over-year basis, with MAX deliveries slated as replacement aircraft as we maintain our goal of ‘peaking the peaks’. We expect TRASM to improve as new markets and routes mature, off-peak becomes a smaller mix of our ASMs, and new commercial initiatives continue to gain traction, including increased Allegiant Extra availability, refining dynamic pricing for ancillary products, and the continued strengthening of our co-brand and loyalty program. We will continue to meet the evolving needs of our customers and adjust our schedules to the demand environment, as we target expanding our earnings and delivering long-term value for our stakeholders.”

*** TABLES OMITTED ***

Second Quarter 2025 Results and Highlights

• Total consolidated operating revenue of $689.4M, up 3.5 percent over the prior year, on capacity growth of 15.7 percent year-over-year
• Adjusted consolidated operating income,⁽¹⁾⁽²⁾ of $50.4M, yielding an adjusted operating margin of 7.3 percent
  • Adjusted airline-only operating income,⁽¹⁾⁽²⁾ of $57.8M, yielding an adjusted airline-only operating margin of 8.6 percent
• Adjusted consolidated income before income tax,⁽¹⁾⁽²⁾ of $29.4M, yielding an adjusted pre-tax margin of 4.3 percent
  • Adjusted airline-only income before income tax,⁽¹⁾⁽²⁾ of $44.3M, yielding an adjusted airline-only pre-tax margin of 6.6 percent
• Adjusted consolidated EBITDA,⁽¹⁾⁽²⁾ of $118.7M, yielding an adjusted EBITDA margin of 17.2 percent
  • Adjusted airline-only EBITDA,⁽¹⁾⁽²⁾ of $122.5M, yielding an adjusted airline-only EBITDA margin of 18.3 percent
• Adjusted airline-only operating CASM, excluding fuel⁽²⁾ of 7.68 ¢, down 6.7 percent year-over-year
• $33.3M in total cobrand credit card remuneration received from Bank of America
• Ended the quarter with 20M total active Allways Rewards members
• During the second quarter, expanded the network by announcing five new nonstop routes
  • In July announced seven new nonstop routes connecting 12 cities across the country

Balance Sheet, Cash and Liquidity

• Total available liquidity at June 30, 2025 was $1.1B, which included $852.7M in cash and investments, and $275.0M in undrawn revolving credit facilities
• $92.2M in cash from operations during second quarter 2025
• Total debt at June 30, 2025 was $2.0B
  • Net debt at June 30, 2025 was $1.1B
• Debt principal payments of $152.0M during the quarter, including $59.1M in voluntary prepayments
• Debt proceeds of $97.9M during the quarter, net of issuance costs
• Air traffic liability at June 30, 2025 was $363.5M

Airline Capital Expenditures

• Second quarter capital expenditures of $137.7M, which included $108.3M for aircraft-related capital expenditures and $29.4M in other airline capital expenditures
• Second quarter deferred heavy maintenance expenditures were $10.0M

Sunseeker Resort Charlotte Harbor

• Second quarter occupancy was 51 percent with an average daily rate (excluding resort fee) of $225 per night
• During the third quarter, announced a contract for the sale of Sunseeker Resort for $200 million (subject to certain adjustments), with the transaction expected to close during the third quarter
  • Recorded special charges of $102.2M during the second quarter related to the pending sale of Sunseeker Resort and Aileron Golf Course, reflecting a write-down to fair value less estimated costs to sell and other related expenses

(1)

Denotes a non-GAAP financial measure. Refer to the Non-GAAP Presentation section within this document for further information and for calculation of per share figures.

(2)

In 2025 and 2024, we recognized certain expenses as special charges related to Airline activities, the pending sale of Sunseeker Resort and Aileron Golf Course, and weather-related damages at Sunseeker Resort (net of recoveries). For a listing of these charges, see the special charges table in Appendix A of this earnings release. The adjusted numbers in this earnings release exclude the effect of these special charges

** TABLES OMITTED **

Allegiant Travel Company

Las Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, focused on connecting customers with the people, places and experiences that matter most. Since 1999, Allegiant Air has linked travelers in underserved cities to world-class vacation destinations with all-nonstop flights and industry-low average fares. Today, Allegiant serves communities across the nation, with base airfares less than half the cost of the average domestic round trip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF.