Allegiant Travel Company (ALGT) Q4 2025 earnings summary

Executive summary

• Exceeded expectations in 2025 with strong leisure demand, disciplined cost execution, and a flexible, low-utilization model, despite higher fuel costs.

• Achieved industry-leading operational reliability, with a 99.9% controllable completion rate and top external rankings for cancellations, baggage handling, and involuntary bumps.

• Integrated 737 MAX aircraft, modernized technology platforms, and advanced commercial initiatives, supporting structural improvements and cost reductions.

• Strengthened financial position through cost discipline, Sunseeker sale, and debt reduction, lowering net leverage to 2.3x.

• Announced agreement to acquire Sun Country Airlines, aiming to accelerate growth as a leading U.S. leisure carrier.

Financial highlights

• Fourth quarter 2025 net income of $50.1M (adjusted airline-only EPS $2.72); full-year adjusted airline-only net income of $93.8M (EPS $5.07), and adjusted consolidated net income of $70.3M (EPS $3.80).

• Q4 2025 total operating revenue was $656M–$656.2M, up 7.6% year-over-year; full-year airline-only revenue was $2.5B–$2.55B, up 4.3%.

• Q4 adjusted airline-only EBITDA was $143M (21.8% margin); full-year adjusted airline-only EBITDA was $428M (16.8% margin).

• Non-fuel unit costs (CASMex) were 8.01¢ in Q4 2025, a 3.4% YoY improvement; FY25 CASMex was 8.04¢, a 6.1% YoY improvement.

• Ended 2025 with $1.1B in liquidity, $838.5M in cash/investments, and total debt just under $1.8B.

Outlook and guidance

• Full-year 2026 adjusted EPS expected to exceed $8, a 60% increase year-over-year; Q1 2026 EPS guidance is $2.50–$3.50 with a 13.5% operating margin.

• FY26 system ASMs expected to be flat (-0.5% YoY); no fleet growth planned for 2026 due to aircraft delivery timing.

• Full-year 2026 capital expenditures estimated at $750M, with $580M for aircraft, $85M for deferred heavy maintenance, and $85M for other capex.

• Guidance excludes impact from Sun Country acquisition, expected to close in the second half of 2026.

• Guidance reflects conservative assumptions due to macroeconomic uncertainty and recent winter storm impacts.