Allegiant Travel Q2 adjusted EPS beats estimates, revenue rises 3.5%

Overview

• Allegiant Q2 adjusted EPS of $1.23 beats analyst expectations, per LSEG data

• Company's Q2 revenue rises 3.5% yr/yr, beating analyst expectations, per LSEG data

• Allegiant operated record 37,000 flights, achieving 99.9% controllable completion factor

Outlook

• Allegiant forecasts full-year 2025 capacity to be flat year-over-year

• Company expects Q3 2025 adjusted EPS between ($1.75) and ($2.75)

• Allegiant anticipates full-year 2025 adjusted EPS to exceed $2.25

• Company sees Q3 2025 fuel cost per gallon at $2.55

Result Drivers

• RECORD FLIGHTS - Allegiant operated 37,000 flights, the highest quarterly total in company history, per CEO Gregory Anderson

• COST CONTROLS - Improved margins attributed to higher productivity and strong cost controls

• ANCILLARY REVENUE - New pricing tools and product expansions increased ancillary revenue by $3 per passenger in the first half of 2025

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the airlines peer group is "buy."

• Wall Street's median 12-month price target for Allegiant Travel Co is $56.00, about 14.1% above its August 1 closing price of $48.12

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nPn7fRjGna