ALGT Q2 2025 Earnings

Call Details

• Call Title: Allegiant Travel Company Q2 2025 Earnings Call
• Date: August 4, 2025 at 8:30 PM UTC
• Management Team:
  • Sherry Wilson (Managing Director of Investor Relations)
  • Greg Anderson (President and CEO)
  • Drew Wells (Chief Commercial Officer)
  • Robert Neal (Chief Financial Officer)

Call Summary

Financial Performance

• The company reported second quarter consolidated net income of $22.7M and consolidated EPS of $1.23 on an adjusted basis.
• The airline segment produced net income of $34.3M and airline-only EPS of $1.86, which exceeded the prior internal expectation of approximately $1.00.
• Airline operating margin was 8.6% and airline EBITDA was $122.5M, representing an EBITDA margin of 18.3%.
• Second quarter total airline operating expenses were $611M, up 4.9% year over year on capacity growth of 15.7%.
• Fuel averaged $2.42 per gallon for the quarter, which was in line with the prior forecast.
• Unit costs excluding fuel were down 6.7% in the quarter, and full-year non-fuel unit costs are expected to be down mid-single digits.
• The quarter included special charges of $103M related to the pending sale of Sunseeker Resort, and consolidated results included those charges.
• The company flew more than 5 million passengers in Q2, a record for the quarter, with approximately 70% being repeat customers.

Guidance

• The company expects to incur an operating loss in the third quarter and provided a consolidated Q3 loss per share outlook of $2.25, including roughly a $0.50 loss attributable to Sunseeker.
• Full-year 2025 airline-only EPS guidance is greater than $3.25 per share on an airline-only basis.
• Full-year 2025 consolidated EPS guidance is above $2.25 per share, factoring eight months of Sunseeker operations.
• The company left full-year CAPEX unchanged at $435M for 2025.
• September ASMs are now expected to be roughly flat year over year after further capacity adjustments.
• The company expects to report a healthy operating profit for the full year and anticipates Q4 to be materially stronger than Q3 seasonally.