U.S. stocks edge higher; solid earnings season continues
Investing.com -- Allegiant Travel Company (NASDAQ:ALGT) reported second quarter adjusted earnings of $1.23 per share, significantly exceeding analyst expectations of $0.77, while revenue reached $689.4 million, slightly above the consensus estimate of $685.03 million. The company’s shares rose 1% following the announcement.
The low-cost carrier achieved its highest quarterly flight total in company history with 37,000 flights and a 99.9% controllable completion factor. Total (EPA:TTEF) revenue increased 3.5% year-over-year, outpacing analyst projections despite capacity growth of 15.7%. The airline delivered an adjusted operating margin of 8.6%, surpassing initial projections in what management described as a "challenging demand environment."
"One of the hallmarks for Allegiant is our ability to deliver great service at an affordable price," said Gregory Anderson, CEO of Allegiant Travel Company. "This improved performance is the result of higher productivity of our existing assets with aircraft utilization up nearly 17% year over year combined with strong cost controls."
The company achieved significant cost reductions, with adjusted airline-only operating cost per available seat mile (CASM), excluding fuel, decreasing 6.7% YoY to 7.68 cents. Management cited commercial initiatives gaining traction, including new pricing tools and Allegiant Extra expansion, which helped increase ancillary revenue by $3 per passenger during the first half of 2025.
Looking ahead, Allegiant expects third-quarter adjusted airline-only operating margin between -3.0% and -6.0%, reflecting seasonally weaker travel demand in late August and September. For the full year 2025, the company projects system capacity to increase approximately 12% YoY and forecasts adjusted airline-only earnings per share to exceed $3.25.
The company also announced a pending $200 million sale of its Sunseeker Resort, expected to close in the third quarter, as part of its strategy to simplify operations and focus on core airline business.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.