Allegiant Travel Reports Second Quarter 2025 Net Loss of $65.2 million or $3.62 per Diluted Share

Allegiant Travel Company has reported a second quarter 2025 net loss of $65.2 million or ($3.62) per diluted share on a year-over-year increase in revenue of 3.5 percent increase in revenue to $689.4 million.

Allegiant Reports Second Quarter 2025 Financial Results - Courtesy Allegiant Travel Company

On Monday (August 4, 2025), Allegiant Travel Company reported their second quarter financial results for the period ending June 30, 2025.  The company reported a second quarter net loss of $65.2 million or ($3.62) per diluted share on a year-over-year increase in revenue of 3.5 percent increase in revenue to $689.4 million.  During the second quarter, Allegiant Recorded special charges of $102.2 million related to the pending sale of Sunseeker Resort and Aileron Golf Course.  Allegiant’s Q2 airline-only diluted earnings per share was $1.86.  At the end of the period, Allegiant had $1.1 billion in liquidity, including $852.7 million in cash, and $275 million in undrawn revolving credit facilities. 

In Monday’s announcement, Allegiant Travel Company’s CEO, Gregory Anderson, said,

“During the quarter, we operated 37,000 flights — the highest quarterly total in company history.  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.”

Allegiant Travel Company's Second Quarter 2025 Financial Results - Courtesy Allegiant Travel Company

Founded in 1999, Las Vegas-based Allegiant Travel Company (NASDAQ: ALGT) is an integrated travel company with an airline at its heart, and a focus on linking passengers from small to medium cities to world-class leisure destinations with all non-stop flights and industry-low average fares.  The company offers base airfares that are often half the price of a typical roundtrip ticket and currently operates an all-Airbus A320 Family fleet.  Allegiant has also placed an order for up to 100 Boeing 737-7 and 737-8-200 MAX jets, some of which have already been delivered.

Source: Allegiant Travel Company