Allegiant Travel stock jumps 4% as Q1 earnings top estimates

LAS VEGAS - Shares of Allegiant Travel Company (NASDAQ:ALGT) jumped 4.5% in after-hours trading on Tuesday after the low-cost airline reported better-than-expected first quarter earnings, despite issuing weak guidance for the second quarter.

Allegiant posted adjusted earnings per share of $1.81 for Q1 2025, surpassing analyst estimates of $1.70. Revenue came in at $699.1 million, slightly below the consensus forecast of $701.23 million but up 6.5% year-over-year.

The company’s airline-only adjusted operating margin improved to 9.3% in Q1, up from 6.2% in the same quarter last year. This was driven by a 14.2% increase in capacity and an 8.4% rise in passenger numbers.

"Team Allegiant executed a successful first quarter, delivering an airline-only operating margin of 9.3 percent, a three-point improvement from last year and among the best in the industry," said Gregory Anderson, President and CEO of Allegiant Travel Company.

However, Allegiant provided weaker-than-expected guidance for Q2 2025, forecasting adjusted earnings per share of $0.50 to $1.00, well below analyst expectations of $1.84. The company cited "heightened volatility" impacting domestic demand and economic uncertainty as reasons for the cautious outlook.

Despite the challenges, Allegiant expects to maintain profitability by leveraging its flexible business model to adjust capacity as needed. The company has already removed over 7.5 points of capacity growth from May through August, primarily during off-peak periods.

Allegiant ended the quarter with $906.3 million in unrestricted cash and investments. The company’s total debt stood at $2.0 billion as of March 31, 2025.

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