ALGT Q4 2025 Earnings

Call Details

• Call Title: Allegiant Travel Company Q4 2025 Earnings Call
• Date: February 4, 2026 at 9:30 PM UTC
• Management Team:
  • Sherry Wilson (Managing Director of Investor Relations)
  • Greg Anderson (President)
  • Drew Wells (Chief Commercial Officer)
  • Robert Neal (Chief Financial Officer)

Call Summary

Financial Performance

• Fourth quarter TRASM declined 2.6% to 12.67 cents on 10.5% year-over-year scheduled service ASM growth.
• Fourth quarter total airline revenue was approximately $656 million, up approximately 7.6% versus 4Q24.
• Fourth quarter airline segment net income was $50.1 million, producing airline-only EPS of $2.72, which was ahead of the guided midpoint.
• The airline generated just over $143 million of EBITDA in the fourth quarter, producing an EBITDA margin of nearly 22% for the quarter.
• Full year 2025 consolidated net income was $70.3 million, or $3.80 per share, with the airline earning $93.8 million and airline-only EPS of $5.07.
• Adjusted operating margin for the quarter was 12.9%, and the company reported adjusted results excluding special items as its primary metric.
• Full year 2025 airline unit costs fell more than 6% on the year according to the company.

Guidance

• First quarter adjusted operating margin is expected to be 13.5% based on current assumptions.
• First quarter EPS midpoint is approximately $3 per share and assumes a fuel cost of $2.60 per gallon.
• Full year 2026 adjusted EPS guidance is at least $8 per share, which management characterized as conservative and standalone for Allegiant.
• Full year 2026 capacity is expected to be down slightly year-over-year, specifically down roughly half of 1% versus full year 2025.
• First quarter ASMs are expected to be down approximately 5.7% year-over-year.
• Full year 2026 capital expenditures are estimated at approximately $750 million, including $85 million of deferred heavy maintenance and $580 million of aircraft-related capex.
• Guidance and outlook exclude any impact from the proposed Sun Country acquisition and assume Allegiant standalone performance.