Allegiant Q2 Earnings Surpass Estimates, Decline Year Over Year

Allegiant Travel Company (ALGT) reported second-quarter 2025 earnings of $1.23 per share, which surpassed the Zacks Consensus Estimate of 83 cents per share. However, the bottom line declined 30.5% from the year-ago quarter.

Operating revenues of $689.4 million missed the Zacks Consensus Estimate of $698.4 million but improved 3.5% on a year-over-year basis.

Passenger revenues, which accounted for the bulk (89.6%) of the top line, grew 3.9% 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 16.1% from the year-ago number. The load factor (percentage of seats filled by passengers) decreased to 81.9% from 84.7% in the reported quarter, as traffic did not outperform capacity.

Allegiant Travel Company Price, Consensus and EPS Surprise

Allegiant Travel Company price-consensus-eps-surprise-chart | Allegiant Travel Company Quote

Operating costs per available seat miles, excluding fuel, fell 2.5% year over year to 8.29 cents. The average fuel cost per gallon (scheduled) decreased 22.2% year over year to $2.49. Total scheduled service passenger revenue per available seat miles fell to 13.01 cents from 13.16 cents a year ago.

Airline operating costs per available seat miles, excluding fuel, fell 6.7% year over year to 7.68 cents. The average fuel cost per gallon (scheduled) decreased 14.1% year over year to $2.43. Total scheduled service passenger revenue per available seat miles fell to 11.57 cents from 13.03 cents a year ago.

ALGT’s Liquidity

As of June 30, 2025, Allegiant’s total unrestricted cash and investments were $852.7 million compared with $906.3 million at the prior-quarter end. Long-term debt and finance lease obligations (net of current maturities and related costs) totaled $1.77 billion compared with $1.74 billion at the prior-quarter end.

Allegiant’s Guidance for Q3 & 2025

For the third quarter of 2025, ASM (for scheduled service) is expected to increase 10% on a year-over-year basis. Total system ASM is projected to gain 9% on a year-over-year basis.

Adjusted loss per share (airline) is anticipated in the $1.25 to $2.25 range.  Third-quarter adjusted consolidated loss per share is expected to lie between $1.75 and $2.75. The fuel cost per gallon is suggested to be $2.55.

For 2025, ASM (for scheduled service) is expected to increase 13% on a year-over-year basis. Total system ASM is projected to rise 12% on a year-over-year basis.

Adjusted EPS (airline) is anticipated to be above $3.25. Adjusted consolidated earnings per share for 2025 is expected to be above $2.25.

Interest expenses are forecasted to be in the range of $140-$150 million. The fuel cost per gallon is suggested to be $2.53.

Under airline capex, aircraft-related capital expenditures are expected to be in the $260-$280 million band. Capitalized deferred heavy maintenance is envisioned to be between $50 million and $70 million. Other airline capital expenditures are expected to be between $95 and $115 million.

The company aims to expand its fleet size to 122 at the end of third-quarter 2025 and for full-year 2025.

Currently, Allegiant carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation Companies

Delta Air Lines (DAL) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.

Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion. 

J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.

Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.

United Airlines Holdings, Inc. (UAL) reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.

UAL's second-quarter 2025 adjusted earnings per share of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.

Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.

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