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Allegiant Stock Price Rises 14.1% Since Q4 Earnings Release
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Key Takeaways
ALGT posted Q4 2025 EPS of $2.86 and revenues of $656.2M, beating estimates and lifting shares 14.1%.
ALGT saw traffic rise 12% versus 10.5% capacity growth, lifting load factor to 81.2% and revenues up 7.6%.
ALGT guided Q1 EPS of $2.50-$3.50 and 2026 EPS above $8, while unit costs ex-fuel fell 3.4% YoY.
Allegiant Travel Company (ALGT - Free Report) reported impressive fourth-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
The better-than-expected results had a positive impact on the market as the stock has gained 14.1% since the earnings release on Feb. 4.
The earnings of $2.86 per share outpaced the Zacks Consensus Estimate by 42.3% and increased 36.2% year over year. Revenues for the fourth quarter of 2025 were $656.2 million, surpassing the Zacks Consensus Estimate by 1% and rising 4.5% year over year.
Allegiant Travel Company Price, Consensus and EPS Surprise
Operating revenues of $656.2 million rose 7.6% on a year-over-year basis. Passenger revenues, which accounted for the bulk (90.8%) of the top line, grew 7.6% on a year-over-year basis.
Air traffic (measured in revenue passenger miles) for scheduled services grew 12% year over year in the quarter under review. Capacity (measured in available seat miles or ASMs) grew 10.5% from the year-ago number. The load factor (percentage of seats filled by passengers) increased to 81.2% from 80.2% in the reported quarter, as traffic growth did not outperform capacity expansion.
Airline operating costs per available seat miles, excluding fuel, fell 3.4% year over year to 8.01 cents. The average fuel cost per gallon (scheduled) increased 4.4% year over year to $2.61. Total scheduled service passenger revenues per available seat mile fell to 12.67 cents from 13.01 cents a year ago.
ALGT’s Liquidity
As of Dec. 31, 2025, Allegiant’s total unrestricted cash and investments were $838.5 million compared with $832.5 million at the prior-quarter end. Long-term debt and finance lease obligations (net of current maturities and related costs) totaled $1.68 billion compared with $1.61 billion at the end of 2024.
Allegiant’s Guidance for Q1 & 2026
For the first quarter of 2026, ASM (for scheduled service) is expected to decrease 5.7% on a year-over-year basis. Total system ASM is projected to fall 5.7% on a year-over-year basis.
Adjusted EPS are anticipated to be in the $2.50 to $3.50 range. The mid-point of the guided range ($3.00 per share) is above the Zacks Consensus Estimate of $2.73 per share. First-quarter adjusted operating margin is expected to lie between 12% and 15%. The fuel cost per gallon is suggested to be $2.60.
For 2026, ASM (for scheduled service) is expected to decrease 0.5% on a year-over-year basis. Total system ASM is projected to fall 0.5% on a year-over-year basis. Interest expenses are forecasted to be in the range of $125-$135 million. The fuel cost per gallon is suggested to be $2.50. The company expects the 2026 tax rate to be 23%.
For 2026, adjusted earnings per share (EPS) are expected to be above $8.00. The Zacks Consensus Estimate for the same is $7.66 per share.
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2025 earnings (excluding 31 cents from non-recurring items) of $1.55 per share, which beat the Zacks Consensus Estimate of $1.53. Earnings decreased 16.22% on a year-over-year basis due to high labor costs.
Revenues in the December-end quarter were $16 billion, beating the Zacks Consensus Estimate of $15.63 billion and increasing 2.9% on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid fourth-quarter 2025 results, wherein the company’s earnings and revenues beat the Zacks Consensus Estimate.
UAL's fourth-quarter 2025 adjusted EPS (excluding 9 cents from non-recurring items) of $3.10 surpassed the Zacks Consensus Estimate of $2.98 but declined 4.9% on a year-over-year basis. The reported figure lies within the guided range of $3.00-$3.50.
Operating revenues of $15.4 billion outpaced the Zacks Consensus Estimate marginally by 0.1% and increased 4.8% year over year.
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Allegiant Stock Price Rises 14.1% Since Q4 Earnings Release
Key Takeaways
Allegiant Travel Company (ALGT - Free Report) reported impressive fourth-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
The better-than-expected results had a positive impact on the market as the stock has gained 14.1% since the earnings release on Feb. 4.
The earnings of $2.86 per share outpaced the Zacks Consensus Estimate by 42.3% and increased 36.2% year over year. Revenues for the fourth quarter of 2025 were $656.2 million, surpassing the Zacks Consensus Estimate by 1% and rising 4.5% year over year.
Allegiant Travel Company Price, Consensus and EPS Surprise
Allegiant Travel Company price-consensus-eps-surprise-chart | Allegiant Travel Company Quote
Operating revenues of $656.2 million rose 7.6% on a year-over-year basis. Passenger revenues, which accounted for the bulk (90.8%) of the top line, grew 7.6% on a year-over-year basis.
Air traffic (measured in revenue passenger miles) for scheduled services grew 12% year over year in the quarter under review. Capacity (measured in available seat miles or ASMs) grew 10.5% from the year-ago number. The load factor (percentage of seats filled by passengers) increased to 81.2% from 80.2% in the reported quarter, as traffic growth did not outperform capacity expansion.
Airline operating costs per available seat miles, excluding fuel, fell 3.4% year over year to 8.01 cents. The average fuel cost per gallon (scheduled) increased 4.4% year over year to $2.61. Total scheduled service passenger revenues per available seat mile fell to 12.67 cents from 13.01 cents a year ago.
ALGT’s Liquidity
As of Dec. 31, 2025, Allegiant’s total unrestricted cash and investments were $838.5 million compared with $832.5 million at the prior-quarter end. Long-term debt and finance lease obligations (net of current maturities and related costs) totaled $1.68 billion compared with $1.61 billion at the end of 2024.
Allegiant’s Guidance for Q1 & 2026
For the first quarter of 2026, ASM (for scheduled service) is expected to decrease 5.7% on a year-over-year basis. Total system ASM is projected to fall 5.7% on a year-over-year basis.
Adjusted EPS are anticipated to be in the $2.50 to $3.50 range. The mid-point of the guided range ($3.00 per share) is above the Zacks Consensus Estimate of $2.73 per share. First-quarter adjusted operating margin is expected to lie between 12% and 15%. The fuel cost per gallon is suggested to be $2.60.
For 2026, ASM (for scheduled service) is expected to decrease 0.5% on a year-over-year basis. Total system ASM is projected to fall 0.5% on a year-over-year basis. Interest expenses are forecasted to be in the range of $125-$135 million. The fuel cost per gallon is suggested to be $2.50. The company expects the 2026 tax rate to be 23%.
For 2026, adjusted earnings per share (EPS) are expected to be above $8.00. The Zacks Consensus Estimate for the same is $7.66 per share.
ALGT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Q4 Performances of Some Other Airline Companies
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2025 earnings (excluding 31 cents from non-recurring items) of $1.55 per share, which beat the Zacks Consensus Estimate of $1.53. Earnings decreased 16.22% on a year-over-year basis due to high labor costs.
Revenues in the December-end quarter were $16 billion, beating the Zacks Consensus Estimate of $15.63 billion and increasing 2.9% on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid fourth-quarter 2025 results, wherein the company’s earnings and revenues beat the Zacks Consensus Estimate.
UAL's fourth-quarter 2025 adjusted EPS (excluding 9 cents from non-recurring items) of $3.10 surpassed the Zacks Consensus Estimate of $2.98 but declined 4.9% on a year-over-year basis. The reported figure lies within the guided range of $3.00-$3.50.
Operating revenues of $15.4 billion outpaced the Zacks Consensus Estimate marginally by 0.1% and increased 4.8% year over year.