Allegiant Travel(ALGT) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Allegiant Travel Company reported a Q2 2025 GAAP diluted loss per share of $(3.62) while achieving record operational performance, revenue growth from commercial initiatives, and strategic business simplification Second Quarter 2025 Financial Performance Overview Allegiant Travel Company reported a GAAP diluted loss per share of $(3.62) for Q2 2025, alongside adjusted airline-only diluted earnings per share of $1.86 and adjusted diluted earnings per share of $1.23 Second Quarter 2025 Financial Performance Overview | Metric | Q2 2025 ($) | Q2 2024 ($) | | :----------------------------------- | :---------- | :---------- | | GAAP Diluted Loss Per Share | $(3.62) | $0.75 | | Adjusted Airline-Only Diluted EPS | $1.86 | $2.24 | | Adjusted Diluted EPS | $1.23 | $1.77 | Operational Achievements The company achieved its highest quarterly flight total in history with 37,000 flights and a remarkable 99.9% controllable completion factor, earning a second consecutive SkyTrax Award for best low-cost carrier in North America - Operated 37,000 flights, the highest quarterly total in company history[2] - Achieved a 99.9% controllable completion factor, considered among the top in the industry[2] - Earned a second consecutive SkyTrax Award for best low-cost carrier in North America[2] Commercial Initiatives & Revenue Growth Commercial initiatives, including new pricing tools, product evolutions, and Allegiant Extra expansion, led to a $3 per passenger improvement in ancillary revenue during the first half of 2025, with further improvements expected from digital transformation - Ancillary revenue increased by $3 per passenger during the first half of 2025[4] - Improved performance resulted from higher productivity of existing assets, with aircraft utilization up nearly 17% year-over-year, combined with strong cost controls[3] - Achieved an industry-leading reduction in unit costs, excluding fuel and special charges, of nearly 8% year-over-year[3] Strategic Business Simplification & Outlook The company is simplifying its business by focusing on core strengths, evidenced by the pending sale of Sunseeker Resort. For 2026, full-year capacity is forecasted to be roughly flat, with expected TRASM improvement from new markets, off-peak mix reduction, and commercial initiatives - Pending sale of Sunseeker Resort is expected to close shortly, simplifying the business and focusing on core strengths[6] - Forecasting full-year capacity for 2026 to be roughly flat year-over-year, with MAX deliveries serving as replacement aircraft[7] - Expect TRASM to improve in 2026 due to new markets maturing, off-peak ASMs becoming a smaller mix, and continued traction from new commercial initiatives[7] Summary Financial Results Consolidated operating revenue increased in Q2 2025 and H1 2025, but significant expense increases led to operating losses, while the airline-only segment showed mixed results with special charges impacting overall performance Consolidated Financial Performance For Q2 2025, consolidated operating revenue increased by 3.5% YoY to $689.4 million, but total operating expense rose significantly by 19.9%, leading to an operating loss of $(67.5) million. For the first six months of 2025, total operating revenue grew 5.0% to $1,388.5 million, but operating expenses increased 9.3%, resulting in an operating loss of $(2.5) million Consolidated Financial Performance (Q2 2025 vs Q2 2024) | Metric | 2025 | 2024 | Percent Change | | :--------------------- | :--- | :--- | :------------- | | Total operating revenue (millions) | $689.4 | $666.3 | 3.5 % | | Total operating expense (millions) | $756.9 | $631.4 | 19.9 % | | Operating income (loss) (millions) | $(67.5) | $34.9 | NM | | Net income (loss) (millions) | $(65.2) | $13.7 | NM | | Diluted earnings (loss) per share ($) | $(3.62) | $0.75 | NM | Consolidated Financial Performance (Six Months Ended June 30, 2025 vs 2024) | Metric | 2025 | 2024 | Percent Change | | :--------------------- | :--- | :--- | :------------- | | Total operating revenue (millions) | $1,388.5 | $1,322.7 | 5.0 % | | Total operating expense (millions) | $1,390.9 | $1,272.3 | 9.3 % | | Operating income (loss) (millions) | $(2.5) | $50.3 | NM | | Net income (loss) (millions) | $(33.1) | $12.8 | NM | | Diluted earnings (loss) per share ($) | $(1.84) | $0.68 | NM | Airline-Only Financial Performance The airline-only segment saw operating revenue increase by 3.0% in Q2 2025 to $668.8 million, but operating income decreased by 8.1% to $43.2 million. For the first six months of 2025, airline operating revenue grew 4.3% to $1,337.1 million, with operating income increasing significantly by 46.1% to $104.0 million Airline-Only Financial Performance (Q2 2025 vs Q2 2024) | Metric | 2025 | 2024 | Percent Change | | :--------------------- | :--- | :--- | :------------- | | Airline operating revenue (millions) | $668.8 | $649.5 | 3.0 % | | Airline operating expense (millions) | $625.6 | $602.5 | 3.8 % | | Airline operating income (millions) | $43.2 | $47.0 | (8.1)% | | Adjusted airline-only operating margin (%) | 8.6 % | 10.3 % | (1.7) | | Adjusted airline-only diluted earnings per share ($) | $1.86 | $2.24 | (17.0)% | Airline-Only Financial Performance (Six Months Ended June 30, 2025 vs 2024) | Metric | 2025 | 2024 | Percent Change | | :--------------------- | :--- | :--- | :------------- | | Airline operating revenue (millions) | $1,337.1 | $1,282.0 | 4.3 % | | Airline operating expense (millions) | $1,233.1 | $1,210.8 | 1.8 % | | Airline operating income (millions) | $104.0 | $71.2 | 46.1 % | | Adjusted airline-only operating margin (%) | 9.0 % | 8.3 % | 0.7 | | Adjusted airline-only diluted earnings per share ($) | $3.96 | $3.31 | 19.6 % | Notes on Special Charges and Non-GAAP Measures The company recognized special charges in 2025 and 2024 related to Airline activities, the pending sale of Sunseeker Resort, and weather-related damages. Adjusted financial figures in the release exclude these special charges and a Q1 2025 non-operating loss on debt extinguishment - Special charges in 2025 and 2024 relate to Airline activities, the pending sale of Sunseeker Resort and Aileron Golf Course, and weather-related damages at Sunseeker Resort[10] - Adjusted numbers in the earnings release exclude the effect of these special charges[10] - A $3.4 million non-operating loss on the extinguishment of debt secured by Sunseeker Resort in Q1 2025 is added back to adjusted results[10] Second Quarter 2025 Detailed Results and Highlights Q2 2025 saw a 3.5% increase in consolidated operating revenue, $1.1 billion in liquidity, $137.7 million in capital expenditures, and a pending $200 million sale of Sunseeker Resort Key Financial Metrics Allegiant reported total consolidated operating revenue of $689.4 million, a 3.5% increase year-over-year, driven by 15.7% capacity growth. Adjusted airline-only operating CASM, excluding fuel, decreased by 6.7% year-over-year to 7.68 cents - Total consolidated operating revenue: $689.4 million, up 3.5% YoY, on capacity growth of 15.7% YoY[15] - Adjusted consolidated operating income: $50.4 million, yielding an adjusted operating margin of 7.3%[15] - Adjusted airline-only operating CASM, excluding fuel: 7.68 cents, down 6.7% YoY[15] Balance Sheet, Cash and Liquidity As of June 30, 2025, total available liquidity was $1.1 billion, including $852.7 million in cash and investments. The company generated $92.2 million in cash from operations during Q2 2025, with total debt at $2.0 billion and net debt at $1.1 billion - Total available liquidity at June 30, 2025: $1.1 billion, including $852.7 million in cash and investments, and $275.0 million in undrawn revolving credit facilities[15] - Cash from operations during Q2 2025: $92.2 million[15] - Total debt at June 30, 2025: $2.0 billion; Net debt: $1.1 billion[15] Airline Capital Expenditures Second quarter capital expenditures totaled $137.7 million, with $108.3 million allocated to aircraft-related capital expenditures and $29.4 million to other airline capital expenditures. Deferred heavy maintenance expenditures were $10.0 million - Second quarter capital expenditures: $137.7 million, including $108.3 million for aircraft-related and $29.4 million in other airline capital expenditures[15] - Second quarter deferred heavy maintenance expenditures: $10.0 million[15] Sunseeker Resort Charlotte Harbor Update Sunseeker Resort reported 51% occupancy in Q2 2025 with an average daily rate of $225. A contract for its sale for $200 million was announced in Q3, expected to close in the same quarter, leading to $102.2 million in special charges for a write-down to fair value - Second quarter occupancy for Sunseeker Resort was 51% with an average daily rate of $225 per night[15] - A contract for the sale of Sunseeker Resort for $200 million was announced during the third quarter, with the transaction expected to close in Q3[15] - Recorded special charges of $102.2 million during Q2 related to the pending sale of Sunseeker Resort and Aileron Golf Course, reflecting a write-down to fair value[15] Guidance and Fleet Plan Allegiant provided Q3 and full-year 2025 guidance, projecting system ASM growth and adjusted airline-only EPS, alongside a detailed aircraft fleet plan showing a slight reduction by year-end 2025 Third Quarter and Full-Year 2025 Guidance For Q3 2025, Allegiant anticipates system ASMs to increase by approximately 9.0% year-over-year, with an adjusted airline-only operating margin between (3.0%) and (6.0%). Full-year 2025 guidance projects system ASMs to grow by about 12.0% and adjusted airline-only earnings per share to be greater than $3.25 Third Quarter 2025 Airline-Only Guidance | Metric | Guidance | | :----------------------------------- | :------- | | System ASMs - year over year change (%) | ~9.0% | | Scheduled service ASMs - year over year change (%) | ~10.0% | | Fuel cost per gallon ($) | $2.55 | | Adjusted airline-only operating margin (%) | (3.0%) to (6.0%) | | Adjusted airline-only earnings per share ($) | ($1.25) to ($2.25) | | Adjusted consolidated earnings per share ($) | ($1.75) to ($2.75) | Full-Year 2025 Guidance | Metric | Guidance | | :----------------------------------- | :------- | | System ASMs - year over year change (%) | ~12.0% | | Scheduled service ASMs - year over year change (%) | ~13.0% | | Fuel cost per gallon ($) | ~$2.53 | | Adjusted airline-only earnings per share ($) | > $3.25 | | Adjusted consolidated earnings per share ($) | > $2.25 | | Interest expense (millions) | $140 to $150 | | Capitalized interest (millions) | ($15) to ($25) | | Interest income (millions) | $30 to $40 | | Airline full-year CAPEX (Aircraft-related, millions) | $260 to $280 | | Capitalized deferred heavy maintenance (millions) | $50 to $70 | | Other airline capital expenditures (millions) | $95 to $115 | | Recurring principal payments (millions) | $160 to $170 | Aircraft Fleet Plan The company's aircraft fleet is projected to decrease from 126 aircraft at the end of Q2 2025 to 122 aircraft by the end of Q3 2025 and remain at 122 by year-end 2025, with changes in the mix of Boeing 737-8200 and various Airbus A320/A319 models Aircraft Fleet Plan by End of Period | Aircraft - (seats per AC) | 2Q25 (count) | 3Q25 (count) | YE25 (count) | | :------------------------ | :----------- | :----------- | :----------- | | Boeing 737-8200 (190 seats) | 9 | 10 | 16 | | Airbus A320 (180 seats) | 67 | 74 | 71 | | Airbus A320 (186 seats) | 8 | — | — | | Airbus A320 (177 seats) | 10 | 8 | 7 | | Airbus A319 (156 seats) | 32 | 30 | 28 | | Total | 126 | 122 | 122 | Company Information and Forward-Looking Statements Allegiant Travel Company, a Las Vegas-based integrated travel company, provides nonstop flights to vacation destinations, with its press release containing forward-looking statements subject to inherent risks and uncertainties Company Profile Allegiant Travel Company is a Las Vegas-based integrated travel company, primarily an airline, connecting travelers in underserved cities to vacation destinations with nonstop flights and low fares since 1999 - Allegiant (NASDAQ: ALGT) is a Las Vegas-based integrated travel company with an airline at its core[20] - Focuses on connecting customers in underserved cities to world-class vacation destinations with all-nonstop flights and industry-low average fares since 1999[20] Safe Harbor Statement The press release includes forward-looking statements, which are estimates based on management's beliefs and assumptions, and are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially. The company undertakes no obligation to update these statements - Statements in the press release that are not historical facts are forward-looking statements, based on management's beliefs and assumptions[21] - Forward-looking statements involve risks, uncertainties, and assumptions, and actual results may differ materially[22] - The company undertakes no obligation to publicly update any forward-looking statements[23] Detailed Financial Statements (GAAP) Detailed GAAP statements reveal a consolidated net loss for Q2 and H1 2025, primarily due to increased operating expenses and significant special charges, despite revenue growth and improved airline operating income for the six-month period Consolidated Statements of Income (Three Months) For the three months ended June 30, 2025, Allegiant reported a consolidated net loss of $(65.166) million, a significant decline from a net income of $13.699 million in the prior year, primarily due to a substantial increase in total operating expenses, particularly special charges Consolidated Statements of Income (Three Months Ended June 30) | Metric | 2025 (thousands) | 2024 (thousands) | Percent Change | | :---------------------- | :--------------- | :--------------- | :------------- | | Total operating revenues | $689,384 | $666,283 | 3.5 % | | Total operating expenses | $756,873 | $631,386 | 19.9 % | | Operating income (loss) | $(67,489) | $34,897 | NM | | Net income (loss) | $(65,166) | $13,699 | NM | | Diluted earnings (loss) per share ($) | $(3.62) | $0.75 | NM | - Special charges, net of recoveries, increased significantly from $18,114 thousand in Q2 2024 to $117,924 thousand in Q2 2025[25] Segment Profit or Loss (Three Months) In Q2 2025, the Airline segment reported an operating income of $43.157 million, a decrease from $46.956 million in Q2 2024. The Sunseeker segment incurred a substantial operating loss of $(110.646) million, primarily due to $103.329 million in special charges related to its pending sale Segment Operating Income (Loss) (Three Months Ended June 30) | Segment | 2025 (thousands) | 2024 (thousands) | | :--------------------- | :--------------- | :--------------- | | Airline operating income | $43,157 | $46,956 | | Sunseeker operating loss | $(110,646) | $(12,059) | | Consolidated operating income (loss) | $(67,489) | $34,897 | - Sunseeker special charges, net of recoveries, were $103,329 thousand in Q2 2025, compared to $(1,959) thousand in Q2 2024[27] Airline Operating Statistics (Three Months) For Q2 2025, total system ASMs increased by 15.7% year-over-year, while airline operating expense per ASM (CASM) decreased by 10.2% to 10.79 cents. Load factor declined by 2.8 percentage points to 81.9%, and total passenger revenue per ASM (TRASM) decreased by 11.2% to 11.57 cents Airline Operating Statistics (Three Months Ended June 30) | Metric | 2025 | 2024 | Percent Change | | :----------------------------------- | :--- | :--- | :------------- | | Passengers | 5,127,025 | 4,621,848 | 10.9 % | | Available seat miles (ASMs) (thousands) | 5,799,409 | 5,013,209 | 15.7 % | | Airline operating expense per ASM (CASM) (cents) | 10.79 ¢ | 12.02 ¢ | (10.2)% | | Load factor (%) | 81.9 % | 84.7 % | (2.8) | | Total passenger revenue per ASM (TRASM) (cents) | 11.57 ¢ | 13.03 ¢ | (11.2)% | | Average fuel cost per gallon ($) | $2.42 | $2.83 | (14.5)% | Consolidated Statements of Income (Six Months) For the six months ended June 30, 2025, consolidated total operating revenues increased by 5.0% to $1,388.458 million. However, total operating expenses rose by 9.3%, leading to a consolidated operating loss of $(2.487) million, compared to an operating income of $50.344 million in the prior year Consolidated Statements of Income (Six Months Ended June 30) | Metric | 2025 (thousands) | 2024 (thousands) | Percent Change | | :---------------------- | :--------------- | :--------------- | :------------- | | Total operating revenues | $1,388,458 | $1,322,688 | 5.0 % | | Total operating expenses | $1,390,945 | $1,272,344 | 9.3 % | | Operating income (loss) | $(2,487) | $50,344 | NM | | Net income (loss) | $(33,064) | $12,780 | NM | | Diluted earnings (loss) per share ($) | $(1.84) | $0.68 | NM | - Special charges, net of recoveries, for the six months increased from $31,212 thousand in 2024 to $116,369 thousand in 2025[31] Segment Profit or Loss (Six Months) For the first six months of 2025, the Airline segment's operating income increased by 46.1% to $104.009 million. Conversely, the Sunseeker segment reported a significant operating loss of $(106.496) million, primarily driven by $100.382 million in special charges Segment Operating Income (Loss) (Six Months Ended June 30) | Segment | 2025 (thousands) | 2024 (thousands) | | :--------------------- | :--------------- | :--------------- | | Airline operating income | $104,009 | $71,172 | | Sunseeker operating loss | $(106,496) | $(20,828) | | Consolidated operating income (loss) | $(2,487) | $50,344 | - Sunseeker special charges, net of recoveries, were $100,382 thousand for the six months ended June 30, 2025, compared to $(3,775) thousand in the prior year[33] Airline Operating Statistics (Six Months) For the first six months of 2025, total system ASMs increased by 15.0% year-over-year, while airline operating expense per ASM (CASM) decreased by 11.5% to 10.96 cents. Load factor declined by 3.1 percentage points to 81.2%, and total passenger revenue per ASM (TRASM) decreased by 9.2% to 11.92 cents Airline Operating Statistics (Six Months Ended June 30) | Metric | 2025 | 2024 | Percent Change | | :----------------------------------- | :--- | :--- | :------------- | | Passengers | 9,578,331 | 8,726,708 | 9.8 % | | Available seat miles (ASMs) (thousands) | 11,250,993 | 9,785,180 | 15.0 % | | Airline operating expense per ASM (CASM) (cents) | 10.96 ¢ | 12.38 ¢ | (11.5)% | | Load factor (%) | 81.2 % | 84.3 % | (3.1) | | Total passenger revenue per ASM (TRASM) (cents) | 11.92 ¢ | 13.13 ¢ | (9.2)% | | Average fuel cost per gallon ($) | $2.51 | $2.92 | (14.0)% | Summary Balance Sheet As of June 30, 2025, total unrestricted cash and investments increased by 2.4% to $852.7 million compared to December 31, 2024. Total debt decreased by 5.1% to $1,962.0 million, resulting in a 10.1% reduction in net debt to $1,109.3 million Summary Balance Sheet (June 30, 2025 vs December 31, 2024) | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | Percent Change | | :----------------------------------- | :----------------------- | :--------------------------- | :------------- | | Unrestricted cash and investments | $852.7 | $832.8 | 2.4 % | | Total debt | $1,962.0 | $2,066.5 | (5.1)% | | Debt, net of unrestricted cash and investments | $1,109.3 | $1,233.7 | (10.1)% | | Total Allegiant Travel Company shareholders' equity | $1,055.9 | $1,089.4 | (3.1)% | EPS Calculation The basic and diluted earnings per share calculations for Q2 2025 show a loss of $(3.62), compared to earnings of $0.75 in Q2 2024. For the six months ended June 30, 2025, basic and diluted EPS were $(1.84), down from $0.69 and $0.68 respectively in the prior year Earnings (Loss) Per Share (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | | :----------------------------------- | :--- | :--- | | Earnings (loss) per share, basic | $(3.62) | $0.75 | | Earnings (loss) per share, diluted | $(3.62) | $0.75 | | Weighted-average shares outstanding (thousands) | 17,995 | 17,828 | Earnings (Loss) Per Share (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | | :----------------------------------- | :--- | :--- | | Earnings (loss) per share, basic | $(1.84) | $0.69 | | Earnings (loss) per share, diluted | $(1.84) | $0.68 | | Weighted-average shares outstanding (thousands) | 17,989 | 17,746 | Non-GAAP Financial Measures Reconciliation (Appendix A) Allegiant provides reconciliations for various adjusted non-GAAP financial measures, excluding special charges and a debt extinguishment loss, to offer a clearer view of airline performance and enhance comparability for investors Explanation of Non-GAAP Measures Allegiant presents various adjusted non-GAAP financial measures, including adjusted operating expense/income, adjusted income before taxes, adjusted net income, adjusted diluted EPS, adjusted CASM, and adjusted EBITDA. These measures exclude special charges related to Sunseeker and airline activities, and a one-time loss on debt extinguishment, to provide a clearer view of airline performance and enhance comparability - Adjusted consolidated and airline-only measures exclude special charges related to Sunseeker (losses, write-down) and Airline activities (accelerated depreciation, restructuring, ratification bonus), and a one-time loss on debt extinguishment[39][40] - These non-GAAP measures are presented to help investors better gauge airline performance, compare results to other airlines, and understand non-fuel costs[41][42] - EBITDA and adjusted EBITDA are supplemental measures used to evaluate operating performance and liquidity, but have limitations such as not reflecting capital expenditures or debt service requirements[43][45][48] Reconciliation of Special Charges Consolidated special charges, net of recoveries, significantly increased to $117.9 million in Q2 2025 from $18.1 million in Q2 2024, and to $116.4 million for the six months ended June 30, 2025, from $31.2 million in the prior year. This was primarily driven by Sunseeker special charges, which included a write-down related to its pending sale Special Charges (millions) | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :----------------------------------- | :---------------------------------------- | :---------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Accelerated depreciation on airframes | $2.5 | $9.3 | $3.9 | $24.2 | | Flight attendant ratification bonus | — | $10.8 | — | $10.8 | | Organizational restructuring | $12.1 | — | $12.1 | — | | Airline special charges | $14.6 | $20.1 | $16.0 | $35.0 | | Sunseeker special charges, net | $103.3 | $(2.0) | $100.4 | $(3.8) | | Consolidated special charges, net | $117.9 | $18.1 | $116.4 | $31.2 | Reconciliation of Adjusted Operating Metrics (Three Months) For Q2 2025, adjusted consolidated operating income was $50.4 million (7.3% margin), a decrease from $53.0 million (8.0% margin) in Q2 2024. Adjusted airline-only operating income was $57.8 million (8.6% margin), down from $67.0 million (10.3% margin) in the prior year, reflecting the impact of special charges Adjusted Operating Metrics (Three Months Ended June 30, 2025) | Metric | GAAP (millions) | Adjustments (millions) | Adjusted (Non-GAAP) (millions) | | :----------------------------------- | :-------------- | :--------------------- | :----------------------------- | | Consolidated Operating income (loss) | $(67.5) | $117.9 | $50.4 | | Consolidated Operating margin (percent) | (9.8) | | 7.3 | | Airline Operating income (loss) | $43.2 | $14.6 | $57.8 | | Airline Operating margin (percent) | 6.5 | | 8.6 | | Consolidated Income (loss) before income taxes | $(88.6) | $117.9 | $29.4 | | Airline Income (loss) before income taxes | $29.7 | $14.6 | $44.3 | Adjusted Operating Metrics (Three Months Ended June 30, 2024) | Metric | GAAP (millions) | Adjustments (millions) | Adjusted (Non-GAAP) (millions) | | :----------------------------------- | :-------------- | :--------------------- | :----------------------------- | | Consolidated Operating income (loss) | $34.9 | $18.1 | $53.0 | | Consolidated Operating margin (percent) | 5.2 | | 8.0 | | Airline Operating income (loss) | $47.0 | $20.1 | $67.0 | | Airline Operating margin (percent) | 7.2 | | 10.3 | | Consolidated Income (loss) before income taxes | $18.0 | $18.1 | $36.1 | | Airline Income (loss) before income taxes | $35.5 | $20.1 | $55.6 | Reconciliation of Adjusted Operating Metrics (Six Months) For the six months ended June 30, 2025, adjusted consolidated operating income was $113.9 million (8.2% margin), an increase from $81.6 million (6.2% margin) in the prior year. Adjusted airline-only operating income rose to $120.0 million (9.0% margin) from $106.2 million (8.3% margin) in 2024 Adjusted Operating Metrics (Six Months Ended June 30, 2025) | Metric | GAAP (millions) | Adjustments (millions) | Adjusted (Non-GAAP) (millions) | | :----------------------------------- | :-------------- | :--------------------- | :----------------------------- | | Consolidated Operating income (loss) | $(2.5) | $116.4 | $113.9 | | Consolidated Operating margin (percent) | (0.2) | | 8.2 | | Airline Operating income (loss) | $104.0 | $16.0 | $120.0 | | Airline Operating margin (percent) | 7.8 | | 9.0 | | Consolidated Income (loss) before income taxes | $(46.6) | $119.8 | $73.2 | | Airline Income (loss) before income taxes | $79.3 | $16.0 | $95.3 | Adjusted Operating Metrics (Six Months Ended June 30, 2024) | Metric | GAAP (millions) | Adjustments (millions) | Adjusted (Non-GAAP) (millions) | | :----------------------------------- | :-------------- | :--------------------- | :----------------------------- | | Consolidated Operating income (loss) | $50.3 | $31.2 | $81.6 | | Consolidated Operating margin (percent) | 3.8 | | 6.2 | | Airline Operating income (loss) | $71.2 | $35.0 | $106.2 | | Airline Operating margin (percent) | 5.6 | | 8.3 | | Consolidated Income (loss) before income taxes | $16.7 | $31.2 | $47.9 | | Airline Income (loss) before income taxes | $48.0 | $35.0 | $83.0 | Reconciliation of EBITDA and Adjusted EBITDA Consolidated EBITDA for Q2 2025 was $0.8 million, significantly lower than $100.2 million in Q2 2024, but adjusted consolidated EBITDA increased slightly to $118.7 million from $118.3 million. For the six months, adjusted consolidated EBITDA grew to $244.8 million from $210.6 million, and adjusted airline-only EBITDA increased to $243.7 million from $223.3 million Consolidated EBITDA and Adjusted Consolidated EBITDA (millions) | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :----------------------------------- | :---------------------------------------- | :---------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Consolidated EBITDA | $0.8 | $100.2 | $128.4 | $179.4 | | Adjusted consolidated EBITDA | $118.7 | $118.3 | $244.8 | $210.6 | Adjusted Airline-Only EBITDA (millions) | Metric | Three Months Ended June 30, 2025 (millions) | Three Months Ended June 30, 2024 (millions) | Six Months Ended June 30, 2025 (millions) | Six Months Ended June 30, 2024 (millions) | | :----------------------------------- | :---------------------------------------- | :---------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Adjusted airline-only EBITDA | $122.5 | $126.3 | $243.7 | $223.3 | Reconciliation of Adjusted EPS Adjusted consolidated net income for Q2 2025 was $22.7 million, resulting in adjusted diluted EPS of $1.23, down from $1.77 in Q2 2024. Adjusted airline-only net income was $34.3 million, yielding adjusted diluted EPS of $1.86, a decrease from $2.24 in the prior year. For the six months, adjusted consolidated diluted EPS increased to $3.03 from $2.34, and adjusted airline-only diluted EPS rose to $3.96 from $3.31 Adjusted Consolidated Earnings Per Share (Three Months Ended June 30) | Metric | 2025 Amount (millions) | 2025 Per Share ($) | 2024 Amount (millions) | 2024 Per Share ($) | | :----------------------------------- | :--------------------- | :----------------- | :--------------------- | :----------------- | | Net income (loss) attributable to common stock (GAAP) | $(65.2) | $(3.62) | $13.4 | $0.75 | | Adjusted net income attributable to common stock | $22.2 | $1.23 | $31.7 | $1.77 | Adjusted Airline-Only Earnings Per Share (Three Months Ended June 30) | Metric | 2025 Amount (millions) | 2025 Per Share ($) | 2024 Amount (millions) | 2024 Per Share ($) | | :----------------------------------- | :--------------------- | :----------------- | :--------------------- | :----------------- | | Net income (loss) attributable to common stock (GAAP) | $(65.2) | $(3.62) | $13.4 | $0.75 | | Adjusted airline-only net income attributable to common stock | $33.5 | $1.86 | $40.0 | $2.24 | Adjusted Consolidated Earnings Per Share (Six Months Ended June 30) | Metric | 2025 Amount (millions) | 2025 Per Share ($) | 2024 Amount (millions) | 2024 Per Share ($) | | :----------------------------------- | :--------------------- | :----------------- | :--------------------- | :----------------- | | Net income (loss) attributable to common stock (GAAP) | $(33.1) | $(1.84) | $12.2 | $0.68 | | Adjusted net income attributable to common stock | $54.8 | $3.03 | $41.7 | $2.34 | Adjusted Airline-Only Earnings Per Share (Six Months Ended June 30) | Metric | 2025 Amount (millions) | 2025 Per Share ($) | 2024 Amount (millions) | 2024 Per Share ($) | | :----------------------------------- | :--------------------- | :----------------- | :--------------------- | :----------------- | | Net income (loss) attributable to common stock (GAAP) | $(33.1) | $(1.84) | $12.2 | $0.68 | | Adjusted airline-only net income attributable to common stock | $71.5 | $3.96 | $59.0 | $3.31 |