Allegiant Travel Company (ALGT) Q1 2025 earnings summary

Executive summary

• Achieved a controllable completion rate of 99.9% on 32,000 departures, with a first quarter record of 4.4 million passengers and 75% repeat customers.

• Operating revenue rose 6.5% year-over-year to $699.1M, driven by 14.2% capacity growth and 8.4% more passengers.

• Airline-only operating margin improved to 9.3%, up over three points year-over-year, with results within initial guidance.

• Sunseeker Resort delivered $4.8 million in EBITDA, a turnaround from a $4.6 million loss in Q1 2024, but is expected to post losses for the remainder of 2025.

• Record average ancillary fare per passenger of $79.28, up 4.7% year-over-year, aided by new product bundles and credit card growth.

Financial highlights

• Net income for Q1 2025 was $32.1M, compared to a net loss of $0.9M in Q1 2024; adjusted net income was $33.4M.

• Airline revenue was $668.4M, up 5.7% year-over-year; RASM was $12.29, down 7.1% year-over-year.

• Adjusted airline-only EBITDA was $121.3M (18.1% margin), up 25% year-over-year.

• Total airline operating expenses were $606M, up 2% on 14% higher capacity; non-fuel unit costs down 9% to 8.07¢.

• Ended quarter with $1.2B in liquidity and $1.1B in net debt, down 10% year-over-year.

Outlook and guidance

• Full-year 2025 guidance withdrawn due to unpredictable near-term demand and economic uncertainty.

• Q2 2025 airline-only operating margin expected at 6.0% to 8.0%; adjusted airline-only EPS guidance $0.50 to $1.50.

• 2024 ASMs anticipated to be up 15.5% year-over-year after capacity adjustments.

• Eight additional 737 MAX aircraft deliveries expected in 2025; 42 aircraft on order through 2028.

• Aircraft-related CapEx forecast reduced by $80M to $435M midpoint.