Allegiant Travel(US:ALGT)2026-02-04 21:00Financial Performance - Fourth quarter 2025 GAAP diluted earnings per share was $1.73, while adjusted airline-only diluted earnings per share was $2.72, reflecting a year-over-year decrease of 9.3%[1][8] - Full-year 2025 total operating revenue reached $2.61 billion, up 3.7% from the previous year, with fourth quarter revenue of $656.2 million, a 4.5% increase year-over-year[1][8][13] - The adjusted airline-only operating margin for the fourth quarter was 12.9%, exceeding initial guidance, with a full-year adjusted airline-only operating margin of 7.4%[3][5][13] - Total airline operating revenue for the full year 2025 was $2.55 billion, reflecting a 4.3% increase year-over-year[10][13] - Allegiant Travel Company reported total operating revenues of $656,188,000 for Q4 2025, a 4.5% increase from $627,705,000 in Q4 2024[28] - Operating income for the twelve months ended December 31, 2025, was $37,167,000, a significant improvement from a loss of $239,976,000 in 2024[34] - The operating margin for the full year 2025 was reported at 12.9%, compared to 10.2% in 2024[52] - The company reported an adjusted operating income of $174.9 million for 2025, compared to $128.2 million in 2024, reflecting a year-over-year increase of 36.5%[54] Customer Metrics - The company achieved a controllable completion factor of 99.9% in 2025, leading the industry and contributing to high customer satisfaction scores[4] - Passenger revenue increased by 7.6% year-over-year, reaching $595,545,000 in Q4 2025 compared to $553,636,000 in Q4 2024[28] - The number of passengers increased by 13.2% to 4,528,986 in the three months ended December 31, 2025, compared to 3,999,879 in the same period of 2024[32] - Total passengers increased by 10.3% year-over-year to 18,737,151 in 2025 from 16,982,836 in 2024[38] - Load factor improved to 81.2% in the three months ended December 31, 2025, up from 80.2% in 2024[32] Expenses and Costs - Total operating expenses decreased by 33.9% to $589,345,000 in Q4 2025 from $891,683,000 in Q4 2024[28] - Total operating expenses decreased to $2,569.4 million from $2,752.6 million, reflecting a reduction of 6.63%[54] - The average fuel cost per gallon increased by 4.4% to $2.61 from $2.50 year-over-year[32] - Average fuel cost per gallon decreased by 7.6% to $2.55 in 2025 from $2.76 in 2024[38] - Airline operating expense per ASM decreased by 7.2% to 11.24 cents in 2025 from 12.11 cents in 2024[38] Strategic Initiatives - Allegiant announced the acquisition of Sun Country Airlines, which is expected to enhance its position as a leading leisure carrier in the U.S.[6][12] - The company expanded its network by announcing 30 new nonstop routes and four new cities during the fourth quarter[13] - The company is focusing on market expansion and new product development as part of its strategic initiatives moving forward[52] - The company is exploring potential market expansions and strategic acquisitions to enhance its competitive position in the industry[54] Future Outlook - Allegiant expects a 13.5% adjusted operating margin in the first quarter of 2026, representing a more than four-point improvement over the prior year[5] - The company anticipates full-year adjusted earnings per share of over $8.00 in 2026, indicating a 60% increase year-over-year[5][18] - Future outlook includes continued focus on new product development and technology advancements to drive growth in the upcoming fiscal year[54] Debt and Liquidity - Total available liquidity at December 31, 2025, was $1.1 billion, including $838.5 million in cash and investments[16] - Total debt decreased by 12.9% to $1,799.6 million in 2025 from $2,066.5 million in 2024[39] Mergers and Acquisitions - The company is in the process of merging with Sun Country Airlines, which may impact future operations and growth opportunities[23] - The company anticipates potential risks related to regulatory approvals and market conditions that could affect future performance and the merger with Sun Country Airlines[24]