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LAS VEGAS - Allegiant Travel Company (NASDAQ:ALGT) reported second quarter 2025 earnings that significantly exceeded analyst expectations, with adjusted earnings per share of $1.23 beating the consensus estimate of $0.77 by $0.46. Revenue came in at $689.4 million, slightly above the analyst estimate of $685.03 million.
The airline achieved an adjusted airline-only operating margin of 8.6% in the quarter, surpassing its initial projections despite what the company described as a challenging demand environment. Allegiant operated 37,000 flights during the period, the highest quarterly total in company history, while maintaining a 99.9% controllable completion factor.
"I’m incredibly proud of Team Allegiant for delivering such strong operational results," said Gregory Anderson, chief executive officer of Allegiant Travel Company. "Due to their efforts, our airline has earned a second consecutive SkyTrax Award for best low-cost carrier in North America."
The company’s improved performance stemmed from higher productivity of existing assets, with aircraft utilization increasing nearly 17% YoY, combined with strong cost controls. Allegiant reported an industry-leading reduction in unit costs, excluding fuel and special charges, of nearly 8% YoY.
Commercial initiatives are gaining traction, with ancillary revenue increasing by $3 per passenger during the first half of 2025. The company noted that recent bookings suggest strengthening domestic demand in the second half of the year compared to previous levels, though it cautioned that the third quarter remains its seasonally weakest period.
Looking ahead to 2026, Allegiant forecasts full-year capacity to be roughly flat YoY, with Boeing (NYSE:BA) MAX deliveries planned as replacement aircraft. The company expects revenue per available seat mile to improve as new markets mature and commercial initiatives continue to gain momentum.
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