Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 1, 2024, it operated a fleet of 126 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including baggage fees, advance seat assignments, travel protection products, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company operates a golf course. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.

Allegiant Travel Company

Allegiant Travel Company (ALGT) stands to benefit from air travel demand and its related fleet-modernization initiatives. A solid balance sheet enables ALGT to consistently reward shareholders with dividends and share repurchases. However, production delays at Boeing BA, high labor costs and macro-economic uncertainty represent major challenges for Allegiant.
Factors Favoring ALGT
Strong passenger volumes bode well for Allegiant. With people taking to the skies, ALGT’s top line increased 5% on a year-over-year basis in the first half of 2025, owing to a 5.1% rise in passenger revenues, which accounted for the bulk (88.9%) of the top line. Given this encouraging backdrop for air-travel demand, ALGTrecently announced the opening of three new nonstop routes, which will connect five cities nationwide, along with offering new service to Burbank, CA, via Hollywood Burbank Airport. ALGT is not the sole U.S. airline to expand its international network. Similarly, United Airlines Holdings, Inc. (UAL) announced its winter expansion schedule, which includes the addition of flights to 15 cities, including Fort Lauderdale, Orlando, and Las Vegas.
ALGT’s fleet modernization efforts, which cater to travel demand, are praiseworthy as well. ALGT ended second-quarter 2025 with 126 (32 A319, 85 A320 and nine Boeing 737-8200) planes.Consistent shareholder-friendly initiatives should boost investor confidence and positively impact the company’s bottom line.
ALGT: Key Risks to Watch
Allegiant is being hurt by the tariff-induced challenging macroeconomic backdrop. The ongoing economic uncertainties and the resultant reduction in consumer and corporate confidence have the potential to hurt domestic air travel demand.
Production delays at Boeing, due to quality control checks and regulatory reviews by the Federal Aviation Administration, have been hindering the fleet-related plans of most airline companies, and it is no different for ALGT. Apart from lower profitability and increased maintenance costs, delays in aircraft delivery are also expected to limit capacity growth going forward.
Escalating operating expenses due to high labor costs weigh on Allegiant’s bottom line. ALGT witnessed a 9.3% rise in operating expenses during the first half of 2025 despite aircraft fuel expense down 2.4% year over year.
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Air Travel Demand, Fleet Upgrade Aid Allegiant Amid High Labor Costs

In the past week, Delta Air Lines DAL gave an improved projection for the third quarter of 2025, driven by the stabilization and improvement of air travel demand. Allegiant Travel Company ALGT was also in the news when it reported a double-digit increase in traffic for August. Latin American carrier Copa Holdings CPA also reported impressive traffic numbers for August, driven by strong passenger volumes.
Regional carrier, SkyWest SKYW, meanwhile, inked a strategic agreement as an equity investor in Maeve Aerospace. JetBlue Airways JBLU, in line with the efforts to enhance operational efficiency, announced the retirement of its Embraer E190 fleet. JetBlue was also in the news recently, driven by strong summer bookings, and it provided an improved outlook for third-quarter 2025 capacity and revenue per seat mile. The news was covered in detail in the previous week’s write-up.
Recap of the Most Recent Important Stories
1. At Allegiant Travel, the August scheduled traffic (measured in revenue passenger miles) rose 12.1% from the August 2024 levels. Capacity (measured in available seat miles) for scheduled service rose 14.6% year over year. Although traffic improved on a year-over-year basis, it failed to outpace capacity expansion. As a result, the load factor (percentage of seats filled by passengers) in August 2025 declined to 82.6% from 84.5% a year ago.
For the total system (including scheduled service and fixed fee contract), Allegiant carried 12.5% more passengers in August 2025 than the year-ago level. System-wide capacity improved 14.4% in August 2025 on a year-over-year basis.
2. Highlighting the improvement in air travel demand, Delta, while presenting at the Morgan Stanley Laguna Conference, gave a better view of revenues for the third quarter of 2025. The airline now expects revenue growth in the 2-4% band in the September quarter from third-quarter 2024 actuals, which is in the upper half of the guidance range provided while releasing its second-quarter 2025 results. Adjusted revenues (excluding third-party refinery sales) are expected in the $14.9-$15.2 billion range.
In July, DAL had projected third-quarter revenues on an adjusted basis to either remain flat or increase up to 4% from the third quarter of 2024 level. Factors like stronger-than-expected demand and capacity discipline across the U.S. airline industry are responsible for the improved September quarter outlook. DAL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 In August, Copa Holdings’ revenue passenger miles (RPM: a measure of air traffic) improved 9.8% on a year-over-year basis. To match the demands well, CPA is increasing its capacity. In August, available seat miles (a measure of capacity) increased 5.8% year over year. Since traffic outpaced capacity expansion, the load factor (the percentage of seats filled by passengers) rose to 88.3% from 85.1% in August 2024.
4. JetBlue has improved its cost efficiency by transitioning to an all-Airbus fleet anchored by the Airbus A220-300. The A220 delivers superior fuel efficiency and lower operating costs. A220 is equipped with modern amenities and technology, in turn boosting the travel experience of passengers. The A220’s extended range opens opportunities for new transcontinental and medium-haul markets.
5. Regional carrier, SkyWest, has entered into a strategic agreement as an equity investor in Maeve Aerospace. The move is in line with SKYW’s commitment to the advancement of modern, economic regional aviation solutions. The agreement provides SkyWest with exclusive Maeve launch customer rights. In the development phase, SkyWest will lend Maeve its extensive operations, performance, and design expertise. The association enhances SkyWest’s long-term strategy pertaining to fleet upgrade.
Airline Stocks Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
What’s Next in the Airline Space?
With air travel demand improving, a revision of third-quarter revenue projections like DAL cannot be ruled out by other carriers in the coming days. Fleet modernization-related updates are also possible from carriers going forward.
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Airline Stock Roundup: DAL's Improved Q3 Revenue View, ALGT in Focus

(RTTNews) - While reporting preliminary passenger traffic results for the month of August 2025 on Wednesday, integrated travel company Allegiant Travel Co. (ALGT) said it carried 1.51 million passengers across the total system in August 2025, up 12.5 percent from 1.34 million passengers in August 2024.
Total System capacity for the month was 1.65 million Available Seats Miles (ASMs), up 14.4 percent from 1.44 million ASMs a year ago.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Allegiant Travel August Capacity Up 14.4%

In a bid to broaden its network, Allegiant Travel Company (ALGT) is introducing three new nonstop routes, which will connect five cities nationwide, along with offering new service to Burbank, CA, via Hollywood Burbank Airport (BUR).
Effective February 2026, the routes will offer new low-cost travel options with one-way fares as low as $39. Tickets for all newly announced routes, including these limited flights, are now available. Flight days, times and the lowest fares can be found at Allegiant.com.
Drew Wells, Allegiant's chief commercial officer, stated, "We're thrilled to expand our network from coast to coast and look forward to bringing our brand of service to Burbank, California. This growth underscores our commitment to providing leisure travelers with more options to reach the destinations they love and strengthens our position as a leader in offering value-oriented air service."
Let’s discuss the three new nonstop routes in detail.
The new routes connecting Burbank, CA, via Hollywood Burbank Airport (BUR) and the following cities are: Bellingham, WA, via Bellingham International Airport (BLI) comes with one-way fares as low as $49 and Provo, UT, via Provo Airport (PVU) comes with one-way fares as low as $39.
The new route connecting Chattanooga, TN, via Chattanooga Metropolitan Airport (CHA) and Fort Lauderdale/Miami, FL, via Fort Lauderdale-Hollywood International Airport (FLL) comes with one-way fares as low as $49.
All of the aforesaid three new non-stop routes are effective from Feb. 12, 2026.
For the introductory one-way fares, it is advisable to book tickets by Sept. 10, 2025, for travel by May 19, 2026.
ALGT is focused on expanding its network and strengthening its presence in the travel industry by offering budget-friendly nonstop services between cities. The inclusion of these new routes is expected to enhance this Zacks Rank #5 (Strong Sell) stockposition in the airline industry globally.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Route Expansion Plans of Other Airline Companies
ALGT is not the sole U.S. airline to expand its international network. Recently, United Airlines Holdings, Inc. (UAL) announced its winter expansion schedule with the addition of flights to 15 cities, including Fort Lauderdale, Orlando, and Las Vegas.
The routes include one additional daily round-trip flight between Houston and Orlando, Las Vegas, New Orleans, Atlanta, Baltimore and Miami; Chicago and Orlando, Fort Lauderdale, New Orleans and Las Vegas; Newark/New York and Orlando and Fort Lauderdale; Los Angeles and Las Vegas. Additionally, two new routes between Newark/New York and Columbia, SC, and Chattanooga, TN; three new weekly flights between Houston and Guatemala City, Guatemala and San Salvador, El Salvador, and one new weekly flight between Houston and San Pedro Sula, Honduras will be offered.
Apart from the routes above, UAL plans to offer extra services between Houston, Chicago and Los Angeles and operate larger aircraft between Chicago and New York LaGuardia to connect customers outside of UAL’s hubs to these added flights.
All the new flights are set to start services from Jan. 6, 2026.
On Sept. 4, 2025,Frontier Airlines ULCC announced plans to launch 22 new routes in the latter part of 2025, expanding services across the United States, the Caribbean and Latin America. The new routes, which are expected to begin in November and December 2025, include new services from Atlanta, Dallas-Fort Worth, Chicago and more in the United States. New international routes to destinations in Guatemala, Honduras and Mexico are also included. The new routes also mark Frontier’s arrival atProvidenciales International Airport in the Turks and Caicos (PLS) and its comeback to Lynden Pindling International Airport in Nassau, The Bahamas (NAS).
Southwest Airlines (LUV) has extended its flight schedule through June 3, 2026. The extended schedule includes more routes to new places. As part of the expansion, Southwest Airlines will operate flights to the island of St. Maarten, beginning April 7, 2026. The addition of St. Maarten marks LUV’s first new international destination since 2021. St. Maarten comprises two parts: the Netherlands' constituent country of Sint Maarten, alongside the French overseas collectivity of Saint-Martin. Southwest Airlines also announced an interline partnership with EVA Air, a subsidiary of the Evergreen Group, to expand seamless travel between Asia and North America. EVA Air is the third airline partner to be announced by the Dallas-based LUV.
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Allegiant to Launch New Nonstop Flights for Boosting Connectivity

In the past week, Allegiant Travel Company ALGT reported a double-digit increase in traffic for July. Delta Air Lines DAL also featured in the news, courtesy of its decision to add two routes to European destinations from Boston as it aims to bolster its European network. Meanwhile, Frontier Airlines ULCC plans to add 20 new routes to its schedule from late fall, aiming to strengthen its position in the ultra-low-cost segment.
Alaska Air Group ALK, the parent company of Hawaiian Airlines, meanwhile, signed an environment-friendly deal with Cosmo Oil Marketing. An expansion-related update was also available from Southwest Airlines LUV over the past week.
Recap of the Most Recent Important Stories
1. At Allegiant Travel, the July scheduled traffic (measured in revenue passenger miles) rose 10.3% from the July 2024 levels. Capacity (measured in available seat miles) for scheduled service rose 11.5% year over year. Although traffic improved on a year-over-year basis, it failed to outpace capacity expansion. As a result, the load factor (percentage of seats filled by passengers) in July 2025 declined to 86.6% from 87.5% a year ago.
For the total system (including scheduled service and fixed-fee contracts), Allegiant carried 10.1% more passengers in July 2025 than in the same period of the previous year. System-wide capacity improved 10.8% in July 2025 on a year-over-year basis.
2. Expanding Boston’s gateway to Europe, Delta announced that it will start new nonstop service from Boston to Madrid and Nice. While flights on the Boston-Madrid route will start operating from May 16, 2026, those connecting Boston and Nice will take to the skies from May 17. While the Boston-Madrid flights will operate daily, the ones on the Boston-Nice route will operate three times a week.
DAL will utilize its Airbus A330-900neo jets to operate on both routes. Following the addition of the new routes, Delta will serve 12 European destinations from Boston. DAL has been constantly looking to expand its presence in Boston, having nearly tripled its service in Boston in a span of two decades. Apart from the introduction of the new routes, DAL, currently carrying a Zacks Rank #3 (Hold), has also decided to expand its service on the Barcelona-Boston and Milan-Boston routes next year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3. Following the sales agreement between Alaska Air and Cosmo Oil Marketing, Hawaiian Airlines intends to incorporate sustainable aviation fuel on flights between Osaka, Japan and Honolulu, Hawaii. Fuel deliveries at Kansai International Airport will mark the first time Hawaiian Airlines has introduced SAF. The use of SAF has the potential to reduce life-cycle carbon emissions by up to 80% compared to traditional jet fuel. Apart from highlighting ALK’s environment-friendly approach, the move is also aimed at strengthening tourism between Japan and Hawaii. Additional traffic on this tourist-friendly route is likely to buoy ALK’s top line.
4. Southwest Airlines has extended its flight schedule through June 3, 2026. The extended schedule includes more routes to new places. As part of the expansion, Southwest Airlines will operate flights to the island of St. Maarten, beginning April 7, 2026. The addition of St. Maarten marks LUV’s first new international destination since 2021. St. Maarten comprises two parts: the Netherlands' constituent country of Sint Maarten, alongside the French overseas collectivity of Saint-Martin. Southwest Airlines also announced an interline partnership with EVA Air, a subsidiary of the Evergreen Group, to expand seamless travel between Asia and North America. EVA Air is the third airline partner to be announced by the Dallas-based LUV.
5. Frontier Airlines has decided to bring its service to the top 20 metro areas in the United States. As part of the expansion exercise, ULCC has decided to add 20 new routes from Detroit, Houston, Baltimore, Fort Lauderdale, Charlotte and Dallas. Further growth is expected at ULCC next year. With many of the new routes overlapping with Spirit Airlines’ key markets, ULCC is likely to be a major gainer if Spirit Airlines collapses, according to a CNBC report. Spirit Airlines filed for bankruptcy last year. Despite an initial restructuring, the situation did not improve with Spirit warning last month that it may not survive another year without further cash infusions.
Airline Stocks’ Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The NYSE ARCA Airline Index increased by 2% to $67.88 as most airline stocks traded in the green last week. Over the past six months, the NYSE ARCA Airline Index has inched up by 2.2%.
What’s Next in the Airline Space?
With carriers like DAL and LUV, scheduled to participate in the Morgan Stanley Laguna Conference on Sept. 11, 2025, investors will keenly await updates. A few August traffic reports are also expected in the coming days.
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Airline Stock Roundup: ALGT's Impressive July Traffic, DAL, LUV in Focus

Allegiant Travel Company ALGT recently reported encouraging traffic numbers for July 2025.
Scheduled traffic (measured in revenue passenger miles) rose 10.3% from the July 2024 levels. Capacity (measured in available seat miles) for scheduled service rose 11.5% year over year. Although traffic improved on a year-over-year basis, it failed to outpace capacity expansion. As a result, the load factor (percentage of seats filled by passengers) in July 2025 declined to 86.6% from 87.5% a year ago.
Total departures (scheduled services) grew 11.8% in July 2025 from a year ago. However, its average stage length (miles) fell 0.4%.
For the total system (including scheduled service and fixed fee contract), Allegiant carried 10.1% more passengers in July 2025 than in the year-ago period. System-wide capacity improved 10.8% in July 2025 on a year-over-year basis.
The fuel price per gallon in July 2025 is estimated to have been $2.58.
Allegiant currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
July 2025 Traffic of Other Airline Companies
Apart from Allegiant, other airline companies that have reported traffic numbers for July 2025 are LATAM Airlines Group (LTM) and Ryanair Holdings RYAAY.
LATAM Airlines
LATAM Airlines reported a year-over-year increase in revenue passenger-kilometers (RPK: a measure of air traffic) for July 2025.
LATAM Airlines reported a 10% year-over-year increase in consolidated capacity, measured in available seat-kilometers (ASK). The uptick was driven by a 12.2% increase in the group’s international operations and an 11.8% increase in the domestic operations of LATAM Airlines Brazil.
LTM’s consolidated traffic, measured in revenue passenger-kilometers (RPK), increased 10.4% year over year. As traffic outpaced capacity expansion, the consolidated load factor (percentage of seats filled by passengers) grew by 0.4 percentage points from July 2024 to 86.7% in July 2025, maintaining healthy load factors across all business segments.
During the month, LATAM Airlinestransported almost 8 million passengers, an increase of 7.9% year over year. Year to date, LATAM Airlines has transported 49.5 million passengers across its network.
Ryanair Holdings
European carrier, Ryanair, reported solid traffic numbers for July 2025, driven by upbeat air-travel demand. The number of passengers transported on Ryanair flights was 20.7 million in July 2025, reflecting a 3% year-over-year increase.
Apart from a year-over-year surge, RYAAY’s July traffic also reflects a straight seven-month improvement at a stretch from the beginning of 2025. RYAAY’s July traffic was higher than the June reading of 19.9 million, the May reading of 19.6 million, the April reading of 18.3 million, the March reading of 15 million, the February reading of 12.6 million and the January reading of 12.4 million.
The July load factor of 96% remained flat on a year-over-year basis, reflecting consistent passenger demand for the airline's services. The July load factor of 96% was higher than the load factor of 95% reported in June and May, the load factor of 93% reported in April and March, the load factor of 92% reported in February 2025 and 91% reported in January 2025.
Although 680 flights were canceled due to the French air traffic control strikes, RYAAY operated more than 113,000 flights in July 2025. This marks an improvement from 109,000 flights operated in June 2025, 108,000 flights operated in May 2025, 103,000 flights in April 2025, 84,000 flights in March 2025, and 71,360 flights in February 2025. In January 2025, growth at RYAAY was hampered by 38 delayed Boeing BA deliveries.
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Allegiant July 2025 Traffic Numbers Improve Year Over Year

In trading on Tuesday, the U.S. Global Jets ETF is outperforming other ETFs, up about 5.8% on the day. Components of that ETF showing particular strength include shares of Frontier Group Holdings, up about 16.2% and shares of Allegiant Travel, up about 12.6% on the day.
And underperforming other ETFs today is the Global X MLP & Energy Infrastructure ETF, down about 0.7% in Tuesday afternoon trading. Among components of that ETF with the weakest showing on Tuesday were shares of Kinder Morgan, lower by about 1.9%, and shares of South Bow, lower by about 1.7% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Key Points
Non-GAAP EPS of $1.23 in Q2 2025 exceeded expectations by 59.7%, driven by cost reductions rather than revenue strength.
GAAP revenue rose 3.5% to $689.4 million, Non-GAAP EPS was significantly above analyst estimates, despite declines in fare and yield metrics.
Management guided for a loss in Q3 2025, with adjusted airline-only earnings per share expected between $(1.25) and $(2.25) amid continued pressure on fares and demand; The Sunseeker Resort divestiture is pending, with the transaction expected to close during Q3 2025.
Allegiant Travel (NASDAQ:ALGT), the leisure-focused airline serving primarily small and mid-sized cities, released its results on August 4, 2025. The company delivered adjusted (Non-GAAP) earnings per share of $1.23, a substantial beat versus the analyst estimate of $0.77 non-GAAP EPS. GAAP revenue was $689.4 million, coming in just above expectations of $685.07 million in GAAP revenue. While cost discipline was the clearest driver of earnings outperformance, several key demand and revenue metrics—such as yields and ancillary sales—remained under pressure. Overall, the quarter saw top-line growth and meaningful cost reductions, but also highlighted ongoing challenges in the fare environment and non-airline ventures.
Metric
Q2 2025 (3 mos ended June 30)
Q2 2025 Estimate
Q2 2024 (3 mos ended June 30)
Y/Y Change
EPS – Diluted (Non-GAAP)
$1.23
$0.77
$1.77
(30.5%)
Revenue (GAAP)
$689.4 million
$685.07 million
$666.3 million
3.5 %
Operating Margin (Non-GAAP)
7.3 %
10.3%
(3.0) pp
Adjusted Net Income (Non-GAAP)
$22.7 million
$32.5 million
(30.2%)
Adjusted EBITDA (Non-GAAP)
$118.7 million
$118.3 million
0.3 %
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Allegiant Travel’s Business and Strategic Focus
Allegiant operates as a low-cost carrier, primarily targeting leisure travelers in small and medium-sized cities that are often bypassed by larger airlines. Its business model is built around offering non-stop flights to popular vacation spots, employing direct-to-consumer sales, and maintaining a low-cost fleet that is mainly owned or financed in-house. This strategy allows the company to offer low base fares and focus on selling ancillary services for additional revenue.
Recently, Allegiant’s focus areas have included deepening its network in under-served markets, growing ancillary revenue through digital enhancements and loyalty programs, and maintaining tight control over unit costs. The company has also explored adjacent lines of business, such as the Sunseeker Resort, though it is now refocusing efforts on its airline core as it looks to divest this hospitality asset.
Second Quarter Highlights: Progress, Pressures, and Strategic Shifts
The quarter saw Allegiant deliver adjusted diluted earnings per share (non-GAAP) of $1.23, well above analyst consensus, on GAAP revenue growth of 3.5%. This outperformance on the bottom line was the result of tight cost controls rather than significant revenue improvement. Adjusted airline-only operating margin contracted by 1.7 percentage points from the prior year, but key revenue drivers—such as average fares and per-passenger yield—remained under pressure.
Total revenue per available seat mile (TRASM), a core airline GAAP metric, was 11.57¢, falling 11.2% from the prior year. Scheduled service yield—the average fare paid per mile—declined 17.7%. Load factor, which shows how fully planes were filled, also fell to 81.9%, down 2.8 percentage points. These declines reflect ongoing pressure on yields to support bookings.
Ancillary revenue per passenger, covering baggage, seat assignment, and other add-ons, improved by $3 per passenger in the first half of 2025. This was credited to enhanced digital pricing tools and expanded premium seat options through the company's “Allegiant Extra” product offering. However, Third-party revenue streams, such as hotel room nights, declined, with hotel room nights sold slumping 39.3%. Sales from fixed-fee flying contracts also declined modestly.
The quarter also featured a pivotal business development: Allegiant booked $103.3 million in special charges tied to the impending sale of the Sunseeker Resort. This move signals a renewed focus on the company’s core airline business. In terms of network strategy, Allegiant operated a record 37,000 flights, added new nonstop routes, and maintained its emphasis on non-overlapping, competition-light markets. The company also continued to invest in its fleet, adding more Boeing 737 MAX aircraft in 2025, which management said delivered operational and financial improvements over older Airbus models.
Looking Ahead: Guidance, Risks, and Key Watchpoints
Management provided guidance pointing to continued challenges in the immediate future. For Q3 2025, Allegiant expects adjusted airline-only operating margins to turn negative (a loss), with adjusted (non-GAAP) diluted EPS projected at a loss between $1.25 and $2.25. For FY2025, Allegiant still expects adjusted airline-only EPS above $3.25 and adjusted consolidated EPS above $2.25 for the full year, System capacity is forecasted to increase about 12% for the full year, but to remain flat in fiscal 2026 as the company aims for steadier growth.
Investors considering Allegiant in coming quarters should closely monitor the company’s success in boosting yields and ancillary sales as fare pressure continues. Other factors to watch include the progress and financial impact of the Sunseeker Resort divestiture, including the recording of $102.2 million in special charges in Q2 2025 related to the pending sale of Sunseeker Resort and Aileron Golf Course, reflecting a write-down to fair value less estimated costs to sell and other related expenses, management’s ability to align capacity with demand, and the performance of the new Boeing 737 MAX fleet. The company is also exposed to any volatility in jet fuel costs, competitive fare changes, and any ongoing macroeconomic pressures that may dampen leisure travel demand.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool recommends Allegiant Travel. The Motley Fool has a disclosure policy.
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Allegiant (ALGT) Q2 EPS Jumps 60%

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Block Inc (Symbol: XYZ), where a total volume of 82,043 contracts has been traded thus far today, a contract volume which is representative of approximately 8.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 115.4% of XYZ's average daily trading volume over the past month, of 7.1 million shares. Particularly high volume was seen for the $68 strike call option expiring July 03, 2025, with 12,556 contracts trading so far today, representing approximately 1.3 million underlying shares of XYZ. Below is a chart showing XYZ's trailing twelve month trading history, with the $68 strike highlighted in orange:
Allegiant Travel Company (Symbol: ALGT) options are showing a volume of 3,973 contracts thus far today. That number of contracts represents approximately 397,300 underlying shares, working out to a sizeable 110.1% of ALGT's average daily trading volume over the past month, of 360,855 shares. Especially high volume was seen for the $60 strike call option expiring July 18, 2025, with 1,914 contracts trading so far today, representing approximately 191,400 underlying shares of ALGT. Below is a chart showing ALGT's trailing twelve month trading history, with the $60 strike highlighted in orange:
And Super Micro Computer Inc (Symbol: SMCI) saw options trading volume of 436,206 contracts, representing approximately 43.6 million underlying shares or approximately 107.3% of SMCI's average daily trading volume over the past month, of 40.6 million shares. Particularly high volume was seen for the $50 strike call option expiring June 27, 2025, with 39,802 contracts trading so far today, representing approximately 4.0 million underlying shares of SMCI. Below is a chart showing SMCI's trailing twelve month trading history, with the $50 strike highlighted in orange:
For the various different available expirations for XYZ options, ALGT options, or SMCI options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Friday Option Activity: XYZ, ALGT, SMCI

Shares of Allegiant Travel Company (ALGT) have not had a good time on the bourses of late, declining in double digits so far this year. The disappointing price performance resulted in ALGT underperforming its industryin the said time frame. Additionally, ALGT’s price performance is unfavorable to that of other industry players like Southwest Airlines Co. (LUV) and Ryanair Holdings RYAAY in the same timeframe.
YTD Price Comparison
Image Source: Zacks Investment Research
Given the significant pullback in ALGT’s shares currently, investors might be tempted to snap up the stock. But is this the right time to buy ALGT? Let’s find out.
Headwinds Weighing on ALGT Stock
Allegiant is being hurt by the tariff-induced challenging macroeconomic backdrop. The ongoing economic uncertainties and the resultant reduction in consumer and corporate confidence have the potential to hurt domestic air travel demand. As a result, it becomes difficult to predict near-term demand, leading to the withdrawal of the company’s 2025 guidance.
Production delays at Boeing, due to quality control checks and regulatory reviews by the Federal Aviation Administration, have been hurting the fleet-related plans of most airline companies, and it is no different for ALGT. Delays in aircraft delivery will lead to lower profitability than expected from the addition of these aircraft to ALGT’s existing fleet. Further, ALGT will be burdened with increased maintenance costs for those aircraft that would have otherwise been retired and raised interest costs for funds borrowed for pre-delivery deposits. Delivery delays are also expected to limit capacity growth going forward.
Labor cost increase of 19.2% in 2024 swamped the 20.3% increase in total operating expenses in 2024, despite costs on aircraft fuel decreasing year over year (down 9.8% in 2024). The increase was attributable to deals inked with various labor groups. ALGT expects to continue experiencing increased cost pressure from the labor agreements.
What Do Earnings Estimates Say for ALGT?
In the past 60 days, the Zacks Consensus Estimate for ALGT’s second-quarter and third-quarter 2025 earnings and full-year 2025 earnings have moved south.
Image Source: Zacks Investment Research
Upbeat Air Travel Demand & Fleet Additions Aid ALGT
Improvement in air-travel demand, following the end of the pandemic and normalization of economic activities, bodes well for Allegiant's top line. While air travel demand remains particularly strong on the leisure front, business travel has also made an encouraging comeback. With people taking to the skies, ALGT’s top line increased 6.5% on a year-over-year basis in first-quarter 2025 due to a 6.3% rise in passenger revenues, which accounted for the bulk (88.2%) of the top line. Given this encouraging backdrop, for the second quarter of 2025, capacity (measured in available seat miles or ASMs) (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%.
Allegiant’s fleet-modernization initiatives to cater to the travel demand are encouraging. The inclusion of modern planes in its fleet and the retirement of the old ones aligns with its environmentally-friendly approach. In 2013, ALGT started transitioning its fleet from a mixture of MD-80 aircraft and Boeing 757 aircraft to an all-Airbus fleet, which ended in November 2018. During this period, ALGT witnessed significant improvement in fuel efficiency.
In January 2022, ALGT inked a new purchase agreement with Boeing to purchase 50 newly manufactured 737 MAX aircraft with the option of purchasing up to an additional 80 737 MAX aircraft. This aircraft is likely to burn up to 20% less fuel on a per-passenger basis than the older Airbus A320 aircraft in ALGT’s fleet. ALGT already took delivery of four 737 MAX aircraft in 2024 and four in the first quarter of 2025. Currently, eight more aircraft are anticipated to be delivered in the last three quarters of 2025.
ALGT ended 2024 with 125 (34 A319, 87 A320 and 4 737-8200) planes in its fleet. ALGT ended first-quarter 2025 with 127 (34 A319, 85 A320 and 8 Boeing 737-8200) planes. The company aims to have a fleet size of 126 by the end of second-quarter 2025, 123 by the end of third-quarter 2025 and 122 at 2025-end.
Other Tailwinds Working in Favor of ALGT
ALGT’s liquidity position looks encouraging. The airline ended first-quarter 2025 with cash and cash equivalents of $897.6 million, higher than the current debt level of $266.6 million. This implies that the company has sufficient cash to meet its current debt obligations. Meanwhile, the long-term debt level has decreased to $1.74 billion at the end of first-quarter 2025 from $1.79 billion at first-quarter 2024-end.
A solid balance sheet enables the company to reward shareholders with dividends and share repurchases. As a reflection of its shareholder-friendly stance, ALGT paid out dividends worth $21.9 million and repurchased shares worth $6 million in 2024. During first-quarter 2025, ALGT repurchased shares worth $11.1 million (did not pay any dividends). Such shareholder-friendly initiatives should boost investor confidence and positively impact the bottom line.
Impressive Valuation Picture for ALGT Stock
From a valuation perspective, ALGT is trading at a discount compared to the industry, going by its forward 12-month price-to-sales ratio. The reading is also below its median over the last five years. The company has a Value Score of A.
ALGT P/S Ratio (Forward 12 Months) Vs. Industry
Image Source: Zacks Investment Research
To Conclude
It is understood that ALGT stock is attractively valued, and strong passenger volumes bode well for Allegiant. Efforts to modernize its fleet are praiseworthy as well. Despite these positives, we advise investors not to buy ALGT stock now due to headwinds like high labor costs, Boeing and Airbus-related delivery delays and share price volatility. ALGT is also hurt by tariff-induced economic uncertainties and the resultant reduction in consumer and corporate confidence.
We advise investors to wait for a better entry point. For those who already own the stock, it will be prudent to stay invested. The company’s current Zacks Rank #3 (Hold) justifies our analysis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.