Allegiant reports passenger increase in January 2025

LAS VEGAS - Allegiant Travel Company (NASDAQ: NASDAQ:ALGT) has released its preliminary passenger traffic results for January 2025, showing a 6.5% increase in passengers compared to January 2024. The Las Vegas-based airline reported carrying 1,252,875 passengers in the month under scheduled service, up from 1,176,117 passengers the previous year. This growth aligns with the company’s expected 13% revenue increase for fiscal year 2025, according to InvestingPro data.

The company also saw a 7.4% increase in revenue passenger miles (RPMs) to 1,202,134,000 for January 2025, up from 1,119,728,000 in January 2024. Despite an increase in available seat miles (ASMs) by 9.9% to 1,525,018,000, the load factor—a measure of how efficiently an airline fills seats—decreased by 1.9 percentage points to 78.8%. While the stock has seen significant volatility recently, dropping 9.6% in the past week, InvestingPro analysis suggests the company is currently undervalued, with analysts setting price targets up to $125.

Allegiant’s total system, which includes scheduled service and fixed fee contract, also experienced growth, with a 6.5% rise in passengers to 1,259,945 and a 10% increase in departures to 9,674. However, the company noted that system revenue passenger miles and system load factor are not relevant metrics as ASMs include both revenue-producing and non-revenue-producing flights.

In terms of operational costs, Allegiant estimated the average fuel cost per gallon for January 2025 to be $2.66 across its system.

Allegiant, known for connecting travelers in small-to-medium cities with nonstop flights to vacation destinations, has been operating since 1999. The airline prides itself on offering base airfares that are significantly lower than the average domestic roundtrip ticket.

The information provided is based on a press release statement from Allegiant Travel Company and reflects data as of January 2025. The company advises verifying the continued accuracy of this information if it is to be used for any purpose. For further details, Allegiant directs interested parties to its investor relations website.

In other recent news, Allegiant Travel Company reported its fourth-quarter 2024 earnings, exceeding expectations with an earnings per share (EPS) of $2.10, surpassing the forecast of $1.19. The company’s revenue also outperformed projections, reaching $627.7 million compared to the anticipated $622.34 million. Raymond (NSE:RYMD) James analyst Savanthi Syth upgraded Allegiant’s stock price target to $125 from $110, maintaining an Outperform rating, following the company’s strong performance. Allegiant’s first-quarter 2025 earnings guidance, however, came in below expectations with an EPS range of $1.50 to $2.50, attributed to metering considerations and holiday timing impacts.

Looking forward, Raymond James projects Allegiant’s 2025 EPS to range between $7.25 and $10.25, highlighting anticipated EBIT margin improvements. The company also plans a 17% capacity growth for 2025, with a focus on expanding service to new routes and increasing Allegiant Extra seating across its fleet. Allegiant’s ongoing debt reduction efforts include the anticipated sale of the Sunseeker resort by summer, aimed at strengthening its financial position. The company ended 2024 with a net income of $45.7 million and an EBITDA margin improvement of nearly 7 percentage points from the previous year.

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