Allegiant reports 9.6% increase in June passenger traffic

LAS VEGAS - Allegiant Travel Company (NASDAQ:ALGT), currently trading at $50.67 and showing signs of undervaluation according to InvestingPro analysis, reported a 9.6% year-over-year increase in scheduled service passengers for June 2025, carrying over 2 million passengers compared to 1.83 million in June 2024, according to a press release issued Thursday.

The Las Vegas-based airline saw its revenue passenger miles grow by 9.8% to 1.77 billion, while available seat miles increased by 12.4% to 2.09 billion. However, the carrier’s load factor declined by 2 percentage points to 84.6% from 86.6% a year earlier. With analysts forecasting a return to profitability this year, the company’s operational metrics are being closely watched.

For the second quarter of 2025, Allegiant transported 5.08 million passengers, representing an 11% increase from the same period last year. The airline expanded its capacity significantly during the quarter, with available seat miles rising 16.1% and departures increasing by 15.8%. Investors anticipating the company’s next earnings report on August 4 can access detailed financial analysis and additional insights through InvestingPro, which features 6 more key tips about ALGT’s performance.

Across its total system, which includes both scheduled service and fixed fee contract operations, Allegiant reported a 9.2% increase in June passengers and a 10.9% increase in available seat miles.

The company also disclosed its estimated average fuel cost per gallon for June at $2.39, while the second quarter average was $2.42.

Allegiant, which focuses on connecting travelers from small and medium-sized cities to vacation destinations with non-stop flights, has operated since 1999 and markets itself as offering base airfares less than half the cost of the average domestic roundtrip ticket.

In other recent news, Allegiant Travel Company announced an agreement to sell its Sunseeker Resort Charlotte Harbor and related properties to affiliates of Blackstone Real Estate Group for $200 million in cash. The transaction is expected to close in the third quarter of 2025, subject to customary conditions and adjustments. This sale includes the resort’s 785-room waterfront property, golf course, and various amenities. Allegiant plans to file the full agreement as part of its quarterly report ending September 30, 2025. Additionally, UBS initiated coverage on Allegiant with a Neutral rating and a price target of $59. UBS analyst Atul Maheswari anticipates Allegiant’s second-quarter earnings per share to be $0.74, slightly below the consensus estimate of $0.78. These developments come amid broader market interest following reports of the sale.

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