Core Viewpoint - Allegiant Travel's recent earnings report shows a mixed performance, with a significant earnings beat but a decline in year-over-year earnings, raising questions about future performance as the stock has outperformed the S&P 500 by 32% in the past month [1][2]. Financial Performance - Allegiant reported Q2 2025 earnings of $1.23 per share, exceeding the Zacks Consensus Estimate of 83 cents, but down 30.5% from the previous year [2]. - Operating revenues reached $689.4 million, slightly below the consensus estimate of $698.4 million, but up 3.5% year-over-year [2]. - Passenger revenues, which made up 89.6% of total revenues, increased by 3.9% year-over-year [3]. Operational Metrics - Air traffic, measured in revenue passenger miles, grew by 12% year-over-year, while capacity, measured in available seat miles (ASMs), increased by 16.1% [3]. - The load factor decreased to 81.9% from 84.7%, indicating that traffic did not keep pace with capacity growth [3]. - Operating costs per available seat mile, excluding fuel, fell by 2.5% year-over-year to 8.29 cents [4]. Cost and Revenue Insights - The average fuel cost per gallon decreased by 22.2% year-over-year to $2.49 [4]. - Total scheduled service passenger revenue per available seat mile fell to 13.01 cents from 13.16 cents a year ago [4]. Liquidity and Debt - As of June 30, 2025, Allegiant's total unrestricted cash and investments were $852.7 million, down from $906.3 million in the previous quarter [6]. - Long-term debt and finance lease obligations totaled $1.77 billion, slightly up from $1.74 billion in the prior quarter [6]. Future Guidance - For Q3 2025, scheduled service ASMs are expected to increase by 10% year-over-year, with adjusted loss per share anticipated in the range of $1.25 to $2.25 [7]. - For the full year 2025, scheduled service ASMs are projected to rise by 13%, with adjusted EPS expected to exceed $3.25 [8]. Industry Comparison - Allegiant Travel is part of the Zacks Transportation - Airline industry, where competitor SkyWest reported a revenue increase of 19.4% year-over-year, with an EPS of $2.91 [13]. - SkyWest's consensus estimate for the current quarter is $2.56 per share, reflecting an 18.5% year-over-year change [14].

Allegiant Travel Company (ALGT) - Scheduled traffic increased by 10.3% year-over-year in July 2025, while capacity rose by 11.5% [1] - Load factor decreased to 86.6% from 87.5% a year ago due to capacity expansion outpacing traffic growth [1] - Total departures grew by 11.8% year-over-year in July 2025, but average stage length fell by 0.4% [2] - Allegiant carried 10.1% more passengers system-wide in July 2025 compared to the previous year, with system-wide capacity improving by 10.8% [2] - Estimated fuel price per gallon in July 2025 was $2.58 [2] - Allegiant currently holds a Zacks Rank 5 (Strong Sell) [2] LATAM Airlines - LATAM Airlines reported a 10% year-over-year increase in consolidated capacity for July 2025, driven by a 12.2% increase in international operations and an 11.8% increase in domestic operations in Brazil [5] - Consolidated traffic increased by 10.4% year-over-year, with load factor growing by 0.4 percentage points to 86.7% [6] - LATAM transported almost 8 million passengers in July 2025, a 7.9% increase year-over-year, and has transported 49.5 million passengers year-to-date [7] Ryanair Holdings - Ryanair transported 20.7 million passengers in July 2025, reflecting a 3% year-over-year increase [8] - July traffic marked a continuous improvement over seven months, with July traffic exceeding previous months' figures [9] - Load factor remained flat at 96% year-over-year, showing consistent passenger demand [10] - Despite 680 flight cancellations due to French air traffic control strikes, Ryanair operated over 113,000 flights in July 2025, an increase from previous months [11]

Core Insights - Allegiant Travel Company reported a significant increase in passenger traffic for July 2025, with a year-over-year growth of 10.3% in scheduled service passengers compared to July 2024 [2] - The total system passenger count also rose by 10.1%, indicating a strong demand for Allegiant's services [3] Scheduled Service – Year Over Year Comparison - Passengers increased to 2,092,740 in July 2025 from 1,897,963 in July 2024, marking a 10.3% rise [2] - Revenue passenger miles grew by 10.3%, reaching 1,856,141 thousand miles [2] - Available seat miles increased by 11.5% to 2,143,669 thousand miles [2] - The load factor slightly decreased by 0.9 percentage points to 86.6% [2] - Departures rose by 11.8% to 14,061 [2] - Average stage length remained relatively stable, decreasing slightly by 0.4% to 867 miles [2] Total System – Year Over Year Comparison - Total system passengers reached 2,100,774 in July 2025, up from 1,908,813 in July 2024, a 10.1% increase [3] - Available seat miles for the total system increased by 10.8% to 2,181,468 thousand miles [3] - Departures for the total system rose by 11.0% to 14,330 [3] - Average stage length for the total system decreased by 0.2% to 866 miles [3] Preliminary Financial Results - The estimated average fuel cost per gallon for July 2025 was $2.58 [5]

Core Insights - Allegiant (ALGT) is experiencing significant pressure from rising operating expenses and a complex economic environment, negatively impacting its investment attractiveness [1] Financial Performance - The Zacks Consensus Estimate for ALGT's current-quarter earnings has been revised downward by 84.68%, now projected at a loss of $2.05 per share [2] - The 2025 earnings estimate has also decreased by 30.86%, now standing at $2.42 per share [2] - ALGT's shares have declined by 36.6%, significantly underperforming the Transportation - Truck industry's decline of 4.6% [3][7] Operating Expenses - In Q2 2025, ALGT's consolidated operating expenses surged by 19.9% year over year, with airline-specific operating expenses increasing by 3.8% [4][7] - Key components of operating expenses include: - Aircraft lease rentals: up 91.7% - Maintenance and repairs: up 18.4% - Station operations: up 7.8% - Labor costs: up 2% [5][7] Market Position - ALGT currently holds a Zacks Rank of 5 (Strong Sell), indicating a lack of confidence from brokers [4] - The company is navigating a volatile macro environment characterized by economic uncertainty, shifting tariff regulations, and geopolitical tensions, which are forcing firms to delay investments and revise forecasts [5][8] Investment Alternatives - Investors in the Transportation sector may consider LATAM Airlines Group (LTM) and SkyWest (SKYW), both of which have a Zacks Rank of 1 (Strong Buy) [9][10] - LTM has an expected earnings growth rate of 45% for the current year, while SkyWest has an expected growth rate of 28.06% [10][11]

Group 1 - Allegiant Travel Company (NASDAQ: ALGT) stock has decreased by over 30% since a "Buy" rating was issued in February, significantly underperforming the S&P 500, which gained 6.6% during the same period [2] - The company is identified as one of the worst-performing airline stocks rated as a "Buy" [2] - The analysis is conducted by an expert with a background in aerospace engineering, focusing on investment opportunities in the aerospace, defense, and airline industry [2] Group 2 - The investing group provides access to data analytics monitors to support investment decisions [2] - The article emphasizes that past performance does not guarantee future results, and no specific investment recommendations are made [3]

Core Viewpoint - Allegiant Air pilots are preparing to hold a formal Vote of No Confidence against the current management team and Board of Directors due to years of poor strategic decisions and reckless spending that threaten the airline's long-term stability [1][4] Management Accountability - Allegiant's management team, led by Maury Gallagher and Greg Anderson, has been criticized for a series of failures, including a 50% drop in market value over six months and a $500 million loss from the failed Sunseeker Resort project [2] - The pilots express that if they had a similar level of failure in their roles, their careers would be jeopardized, indicating a demand for accountability from management [2] Leadership Culture - The Teamsters General President described Allegiant's management culture as toxic, characterized by arrogance and a lack of accountability [2] - Pilots have noted that recent extravagant expenditures, such as using private jets for base visits while claiming financial constraints, reflect a disconnect between management and operational realities [3] Call for Change - The upcoming Vote of No Confidence is framed as a necessary step to protect the airline's brand and ensure its long-term success, emphasizing the need for new leadership and improved corporate governance [4] - The pilots believe that a change in management is essential for the best interests of the airline, its employees, customers, and shareholders [4]

Core Insights - Allegiant Travel Company has announced the addition of Atlantic City, New Jersey to its network, enhancing its position in leisure travel with four new routes connecting popular coastal destinations [1][2] - The airline is offering introductory one-way fares as low as $39 to celebrate the new routes, reflecting its commitment to providing budget-friendly travel options [1][6] - Allegiant's growth strategy includes recent route expansions and an extended flight schedule through May 2026, allowing travelers to plan vacations in advance [4] Company Strategy - Allegiant focuses on connecting underserved communities with leisure destinations, emphasizing value-driven travel options [1][2] - The airline's business model is centered around all-nonstop flights, which enhances the travel experience by reducing time spent at airports [4] - The new routes aim to connect Atlantic City with several cities in Florida, catering to travelers seeking both entertainment and relaxation [2][3] Market Position - Atlantic City is highlighted as a top-tier destination known for its Boardwalk, nightlife, and casinos, appealing to a diverse range of travelers [2][3] - Allegiant's fleet serves small-to-medium cities across the nation, providing access to world-class vacation destinations at competitive prices [7][8] - The airline's average fares are reported to be less than half the cost of the average domestic roundtrip ticket, reinforcing its low-cost travel model [8]

Core Insights - Allegiant Travel Company announced five new nonstop routes connecting eight cities, including Huntsville, Alabama, with one-way fares starting at $39 to celebrate the launch [1][7] - The new routes aim to enhance Allegiant's presence in popular leisure destinations, catering to travelers seeking budget-friendly options [1][2] - The airline's business model focuses on connecting underserved markets to top vacation destinations, allowing for quick responses to consumer demand [2] Route Details - New route from Orlando, Florida (MCO) to Appleton, Wisconsin (ATW) starts January 16, 2026, with one-way fares as low as $69 [3] - New route from Sarasota/Bradenton, Florida (SRQ) to Rochester, New York (ROC) begins February 13, 2026, with one-way fares starting at $59 [3] - Additional routes include Fort Lauderdale, Florida (FLL) starting November 19, 2025, and St. Petersburg, Florida (PIE) beginning March 5, 2026, both with one-way fares as low as $39 [7] Business Model and Strategy - Allegiant's all-nonstop flight network enhances travel convenience, allowing passengers to spend less time at the airport [4] - The company has extended its flight schedule through May 2026, enabling travelers to plan vacations in advance [3] - Allegiant's average base airfares are less than half the cost of the average domestic roundtrip ticket, emphasizing its focus on affordability [6]

Core Insights - Allegiant Travel Company (ALGT) reported Q2 2025 earnings of $1.23 per share, exceeding the Zacks Consensus Estimate of 83 cents, but reflecting a 30.5% decline year-over-year [1][9] - Operating revenues reached $689.4 million, slightly below the Zacks Consensus Estimate of $698.4 million, yet showing a 3.5% year-over-year improvement [1][9] Revenue Performance - Passenger revenues, which constituted 89.6% of total revenues, increased by 3.9% year-over-year [2] - Air traffic, measured in revenue passenger miles, grew by 12% year-over-year, while capacity, measured in available seat miles (ASMs), increased by 16.1% [2] - The load factor decreased to 81.9% from 84.7% year-over-year, indicating that traffic did not keep pace with capacity growth [2] Cost Analysis - Operating costs per available seat mile, excluding fuel, decreased by 2.5% year-over-year to 8.29 cents [3] - The average fuel cost per gallon for scheduled services fell by 22.2% year-over-year to $2.49 [3] - Total scheduled service passenger revenue per available seat mile declined to 13.01 cents from 13.16 cents a year ago [3] Liquidity Position - As of June 30, 2025, Allegiant's total unrestricted cash and investments amounted to $852.7 million, down from $906.3 million in the previous quarter [5] - Long-term debt and finance lease obligations totaled $1.77 billion, slightly up from $1.74 billion in the prior quarter [5] Future Guidance - For Q3 2025, scheduled service ASMs are expected to increase by 10% year-over-year, with total system ASMs projected to rise by 9% [6] - Adjusted loss per share for the airline is anticipated to be in the range of $1.25 to $2.25, while the consolidated loss per share is expected between $1.75 and $2.75 [6] - For the full year 2025, scheduled service ASMs are projected to increase by 13% year-over-year, with adjusted EPS expected to exceed $2.25 [7] Capital Expenditures - Aircraft-related capital expenditures are expected to be in the range of $260-$280 million, with additional capitalized deferred heavy maintenance between $50 million and $70 million [8] - The company aims to expand its fleet size to 122 by the end of Q3 2025 [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to_______ Commission File Number 001-33166 Allegiant Travel Company (Exact Name of Registrant as Specified in Its Charter) Nevada 20-4745737 (State or ...