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Allegiant Travel Company ALGT 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.