Allegiant Q2 Earnings Surpass Estimates, Decline Year Over Year

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]