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Allegiant Q1 Earnings and Revenues Top Estimates, Improve Y/Y
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Allegiant Travel Company (ALGT - Free Report) has reported first-quarter 2025 earnings per share (excluding 8 cents from non-recurring items) of $1.81, which surpassed the Zacks Consensus Estimate of $1.54. The company reported earnings of 57 cents per share in the year-ago quarter.
Operating revenues of $699.1 million surpassed the Zacks Consensus Estimate of $690.3 million and improved 6.5% on a year-over-year basis.
Allegiant Travel Company Price, Consensus and EPS Surprise
Passenger revenues, which accounted for the bulk (88.2%) of the top line, improved 6.3% year over year. Air traffic (measured in revenue passenger miles) for scheduled services improved 10% year over year in the quarter under review. Capacity (measured in available seat miles or ASMs) grew 14.4% from the year-ago number. The load factor (percentage of seats filled by passengers) decreased to 80.5% in the reported quarter from 83.8% in the year-ago quarter, as traffic growth did not outperform capacity expansion. The actual figure for the first quarter of 2025 was a tad higher than our estimate of 80%.
Airline operating costs per available seat mile, excluding fuel, fell 9% year over year to 8.07 cents. The average fuel cost per gallon (scheduled) decreased 12.2% year over year to $2.63. Total scheduled service passenger revenue per available seat mile fell to 12.29 cents from 13.23 cents a year ago.
ALGT’s Liquidity
As of March 31, 2025, Allegiant’s total unrestricted cash and investments were $906.3 million compared with $832.8 million at 2024-end. Long-term debt and finance lease obligations (net of current maturities and related costs) totaled $1.75 billion compared with $1.61 billion at 2024-end.
Allegiant’s Guidance for Q2 & 2025
For the second quarter of 2025, ASM (for scheduled service) is expected to increase 15.5% on a year-over-year basis. Total system ASM is projected to gain 15% on a year-over-year basis.
The operating margin is expected to be between 6% and 8%. Adjusted EPS (airline) is anticipated to be in the range of 50 cents to $1. Second-quarter adjusted consolidated EPS is expected to lie between $0.00 and $1. The Zacks Consensus Estimate is currently pegged at $2.27 per share. The fuel cost per gallon is expected to be $2.40.
For 2025, interest expenses are forecasted to be in the range of $150-$160 million. Capitalized interest is forecasted between $15 million and $25 million. Interest income is projected in the $30-$40 million range.
The company aims to have a fleet size of 126 by the end of second-quarter 2025. The same is anticipated to be 123 and 122 by the end of third-quarter 2025 and 2025-end, respectively.
ALGT’s Zacks Rank
Currently, Allegiant carries a Zacks Rank #5 (Strong Sell).
We note that another player from the broader Zacks Transportation sector, Landstar System (LSTR - Free Report) , will report its first-quarter earnings numbers later this month. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Landstar System is scheduled to report first-quarter 2025 earnings on May 13. The company’s performance in the first quarter is expected to have suffered from weak freight demand, geopolitical uncertainty, tariff-related uncertainties and high inflationary pressure.
LSTR’s earnings have outpaced the Zacks Consensus Estimate in two of the last four quarters (missing the mark on the other two occasions). The average miss is 0.6%.
Q1 Performances of Other Airline Companies
United Airlines’ (UAL - Free Report) first-quarter 2025 earnings per share (excluding 25 cents from non-recurring items) of 91 cents surpassed the Zacks Consensus Estimate of 75 cents. In the year-ago quarter, the Chicago-based airline reported a loss of 15 cents per share.
Operating revenues of $13.21 billion fell marginally short of the Zacks Consensus Estimate of $13.22 billion. The top line increased 5.4% year over year despite the tariff-induced slowdown in domestic air travel demand. Passenger revenues (which accounted for 89.7% of the top line) rose 4.8% to $11.9 billion. UAL flights transported 40,806 passengers in the first quarter, up 3.8% year over year.
Delta Air Lines (DAL - Free Report) reported first-quarter 2025 earnings (excluding 9 cents from non-recurring items) of 46 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents. Earnings increased 2.2% on a year-over-year basis due to low fuel costs.
Revenues in the March-end quarter were $14.04 billion, surpassing the Zacks Consensus Estimate of $13.81 billion and increasing 2.1% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) rose 3.3% year over year to $13 billion.
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Allegiant Q1 Earnings and Revenues Top Estimates, Improve Y/Y
Allegiant Travel Company (ALGT - Free Report) has reported first-quarter 2025 earnings per share (excluding 8 cents from non-recurring items) of $1.81, which surpassed the Zacks Consensus Estimate of $1.54. The company reported earnings of 57 cents per share in the year-ago quarter.
Operating revenues of $699.1 million surpassed the Zacks Consensus Estimate of $690.3 million and improved 6.5% on a year-over-year basis.
Allegiant Travel Company Price, Consensus and EPS Surprise
Allegiant Travel Company price-consensus-eps-surprise-chart | Allegiant Travel Company Quote
Passenger revenues, which accounted for the bulk (88.2%) of the top line, improved 6.3% year over year. Air traffic (measured in revenue passenger miles) for scheduled services improved 10% year over year in the quarter under review. Capacity (measured in available seat miles or ASMs) grew 14.4% from the year-ago number. The load factor (percentage of seats filled by passengers) decreased to 80.5% in the reported quarter from 83.8% in the year-ago quarter, as traffic growth did not outperform capacity expansion. The actual figure for the first quarter of 2025 was a tad higher than our estimate of 80%.
Airline operating costs per available seat mile, excluding fuel, fell 9% year over year to 8.07 cents. The average fuel cost per gallon (scheduled) decreased 12.2% year over year to $2.63. Total scheduled service passenger revenue per available seat mile fell to 12.29 cents from 13.23 cents a year ago.
ALGT’s Liquidity
As of March 31, 2025, Allegiant’s total unrestricted cash and investments were $906.3 million compared with $832.8 million at 2024-end. Long-term debt and finance lease obligations (net of current maturities and related costs) totaled $1.75 billion compared with $1.61 billion at 2024-end.
Allegiant’s Guidance for Q2 & 2025
For the second quarter of 2025, ASM (for scheduled service) is expected to increase 15.5% on a year-over-year basis. Total system ASM is projected to gain 15% on a year-over-year basis.
The operating margin is expected to be between 6% and 8%. Adjusted EPS (airline) is anticipated to be in the range of 50 cents to $1. Second-quarter adjusted consolidated EPS is expected to lie between $0.00 and $1. The Zacks Consensus Estimate is currently pegged at $2.27 per share. The fuel cost per gallon is expected to be $2.40.
For 2025, interest expenses are forecasted to be in the range of $150-$160 million. Capitalized interest is forecasted between $15 million and $25 million. Interest income is projected in the $30-$40 million range.
The company aims to have a fleet size of 126 by the end of second-quarter 2025. The same is anticipated to be 123 and 122 by the end of third-quarter 2025 and 2025-end, respectively.
ALGT’s Zacks Rank
Currently, Allegiant carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We note that another player from the broader Zacks Transportation sector, Landstar System (LSTR - Free Report) , will report its first-quarter earnings numbers later this month. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Landstar System is scheduled to report first-quarter 2025 earnings on May 13. The company’s performance in the first quarter is expected to have suffered from weak freight demand, geopolitical uncertainty, tariff-related uncertainties and high inflationary pressure.
LSTR’s earnings have outpaced the Zacks Consensus Estimate in two of the last four quarters (missing the mark on the other two occasions). The average miss is 0.6%.
Q1 Performances of Other Airline Companies
United Airlines’ (UAL - Free Report) first-quarter 2025 earnings per share (excluding 25 cents from non-recurring items) of 91 cents surpassed the Zacks Consensus Estimate of 75 cents. In the year-ago quarter, the Chicago-based airline reported a loss of 15 cents per share.
Operating revenues of $13.21 billion fell marginally short of the Zacks Consensus Estimate of $13.22 billion. The top line increased 5.4% year over year despite the tariff-induced slowdown in domestic air travel demand. Passenger revenues (which accounted for 89.7% of the top line) rose 4.8% to $11.9 billion. UAL flights transported 40,806 passengers in the first quarter, up 3.8% year over year.
Delta Air Lines (DAL - Free Report) reported first-quarter 2025 earnings (excluding 9 cents from non-recurring items) of 46 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents. Earnings increased 2.2% on a year-over-year basis due to low fuel costs.
Revenues in the March-end quarter were $14.04 billion, surpassing the Zacks Consensus Estimate of $13.81 billion and increasing 2.1% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) rose 3.3% year over year to $13 billion.