1. ALGT reported a $(3.62) GAAP loss per share in Q2 2025. 2. Operating revenue rose 3.5% to $689.4M amid significant capacity growth. 3. Adjusted airline-only operating margin improved to 8.6%, exceeding projections. 4. Strong operational metrics include 99.9% completion factor and 37,000 flights. 5. Expecting overall capacity to remain flat year-over-year in 2026.
Despite higher revenues and improved margins, the net loss signals ongoing challenges. Historical context shows stock recovery post-loss, yet sustained losses deter investor confidence.
The significant earnings loss and ongoing operational challenges directly affect ALGT stock value and investor sentiment.
Immediate investor reactions will likely reflect the negative earnings report, but medium-term recovery could occur if operational improvements hold.
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."
Consolidated results for three months ended June 30:
Airline only results for the three months ended June 30:
For more detailed financial information, refer to the full earnings release.
Allegiant Travel Company will host a conference call with analysts at 4:30 p.m. ET Monday, August 4, 2025, to discuss its second quarter financial results. A live broadcast of the conference call will be available via the Company's Investor Relations website.
Media Inquiries: media@allegiantair.com
Investor Inquiries: investorrelations@allegiantair.com