Allegiant Travel Company (ALGT) Q4 2024 earnings summary

Executive summary

• Adjusted airline-only operating margin rose to 13.2% in Q4 2024, up 6.6 points year-over-year, driven by higher aircraft utilization and operational efficiency.

• Fourth quarter total airline revenue reached nearly $610M, slightly up year-over-year, supported by strong ancillary revenue and holiday demand.

• Strategic initiatives included restoring peak utilization, commercial technology upgrades, and fleet modernization, with four MAX aircraft in service by year-end.

• Sunseeker Resort review underway, with a process launched to sell a majority interest by summer; Q4 included a $322M impairment and $5.7M hurricane-related damages.

• Strengthened balance sheet by selling older A320 assets and repaying Sunseeker-related debt.

Financial highlights

• Q4 adjusted airline-only net income was $55.6M, with adjusted airline-only EPS of $3.00; adjusted consolidated net income was $38.9M, EPS $2.10.

• Full-year adjusted airline-only net income was $107.5M, EPS $5.84; adjusted consolidated net income was $45.7M, EPS $2.48.

• Q4 adjusted airline-only EBITDA was $139.2M (22.8% margin); adjusted consolidated EBITDA was $129.2M (20.6% margin).

• Q4 adjusted non-fuel unit costs were 8.29¢, down 2.5% year-over-year; full-year unit costs up 5.4% on 1.1% capacity growth.

• Q4 GAAP net loss was $(216.2)M, primarily due to a $322M Sunseeker impairment.

Outlook and guidance

• 2025 airline-only EPS guidance midpoint is $9, over 50% improvement from 2024; full-year guidance range is $7.75–$10.25.

• Q1 2025 airline-only operating margin expected at 9.5%, with non-fuel unit cost reduction of 7% year-over-year on 13.5% capacity growth.

• Full-year 2025 airline capital expenditures projected at $515M, including $300M for aircraft and engines.

• Sunseeker segment to be guided quarterly due to ongoing sale process; Q1 2025 EBITDA expected at ~$2M.

• 2025 capacity to grow 17%, with 9 MAX aircraft deliveries planned and higher aircraft utilization.