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LAS VEGAS - Allegiant Travel Company (NASDAQ:ALGT), currently valued at nearly $1 billion in market capitalization, reported a 9.2% increase in scheduled service passengers for May 2025 compared to the same month last year, according to preliminary traffic results released by the airline on Friday. According to InvestingPro data, the company’s revenue has shown steady growth with a 5-year CAGR of 6%.
The Las Vegas-based carrier transported 1,545,033 scheduled service passengers in May, up from 1,414,692 in May 2024. Revenue passenger miles increased 10.2% to 1.39 million.
Available seat miles grew at a faster rate of 16.3% to 1.73 million, resulting in a load factor of 80.3%, down 4.5 percentage points from 84.8% in the previous year. The company operated 11,174 departures in May, representing a 16.2% increase from the same period last year.
For the total system, which includes both scheduled service and fixed fee contract operations, Allegiant reported 1,563,294 passengers, a 9.4% year-over-year increase. System-wide available seat miles rose 16.5% to 1.79 million, while departures increased 16.7% to 11,641.
The average stage length remained relatively stable at 884 miles for scheduled service and 878 miles for the total system.
Allegiant also disclosed its estimated average fuel cost for May 2025 at $2.37 per gallon across its system.
The traffic figures were released in a press release statement from the company, which operates an airline focused on connecting customers from small-to-medium cities to vacation destinations with non-stop flights.
In other recent news, Allegiant Travel Company reported its Q1 2025 earnings, exceeding analyst expectations with an earnings per share (EPS) of $1.81, higher than the forecasted $1.70. Although revenue slightly missed projections, coming in at $699.1 million against a forecast of $701.23 million, the company demonstrated strong cost management and strategic fleet adjustments. Allegiant’s net income for the quarter reached $33.4 million, with the airline segment alone contributing $39 million. The company also saw a 14% increase in capacity and a 3 percentage point rise in operating margin, reflecting efficient operations and strong demand for leisure travel.
Goldman Sachs maintained a Neutral rating on Allegiant, with a price target of $56.00, noting the company’s Q1 EPS beat but expressing caution over its June quarter guidance, which projects an EPS ranging from break-even to $1.00. This guidance is below the consensus expectations of $1.85. Allegiant has withdrawn its fiscal year 2025 EPS guidance due to economic uncertainties. Despite challenges, the airline reported a record number of passengers for Q1 and continues to see strong demand during peak travel periods.
Additionally, Allegiant released preliminary passenger traffic results for April 2025, showing a 15.0% increase in the number of passengers compared to April 2024. The total number of passengers for Allegiant’s system, including fixed fee contract flying, reached 1,543,689, a 14.9% increase from the previous year. Allegiant’s average fuel cost per gallon for April 2025 was estimated at $2.51, highlighting the impact of fuel costs on profitability. The company remains optimistic about staying profitable in 2025, leveraging its business model to adjust capacity during slower periods and optimize for peak travel times.
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