Executive Summary

Allegiant reported Q3 2025 consolidated operating revenue of $561.9M (flat YoY), GAAP diluted loss per share of ($2.41), and adjusted diluted loss per share of ($2.09); airline-only adjusted loss per share was ($1.64) as Q3 remained seasonally weakest but results came at the favorable end of guidance .
Management raised full-year airline-only EPS guidance to >$4.35 and consolidated EPS to >$3.00, citing improving leisure bookings, cost discipline (CASM-ex down 4.7% YoY in Q3), and expected double-digit Q4 operating margin (10–12%) .
Operational execution stayed strong: controllable completion factor 99.9%, 33K departures and 4.6M passengers—third-quarter records; adjusted airline-only EBITDA was $41.5M (7.5% margin) amid pricing headwinds (TRASM down 8.4% YoY) .
Balance sheet/liquidity improved post Sunseeker sale closure (Sept 4) with total available liquidity of $1.2B, net leverage ~2.6x, and $181.3M voluntary prepayments in Q3; $120M notes repaid in October .
Near-term catalysts: raised FY25 EPS guidance; continued MAX integration (16 in service by YE) and Allegiant Extra rollout (~70% of aircraft) supporting margin expansion into 2026 .

What Went Well and What Went Wrong

What Went Well

Operational reliability and customer metrics: 99.9% controllable completion, 33K departures, 4.6M passengers; NPS near all-time highs; recognition for Best Airline Credit Card and Frequent Flyer Program .
Cost discipline: adjusted airline-only CASM, excluding fuel and specials, at 8.47¢ (down 4.7% YoY); year-to-date CASM-ex down nearly 7%, underpinning guidance raise .
Strategic initiatives: MAX integration (16 in service by YE), Allegiant Extra on ~70% of fleet, Navitaire benefits driving better load factors and expected TRASM/efficiency improvements .

What Went Wrong

Revenue/pricing headwinds: scheduled service TRASM fell 8.4% YoY; yield down 16% YoY; average scheduled fare down 16.3% YoY, reflecting competitive/leisure pricing pressure .
Maintenance and rent line pressures: maintenance up 31.8% YoY in Q3, with timing of rotable repairs, lease returns, and some tariff costs; rent continued to pressure sequentially, though viewed as transitory .
Q3 profitability: airline adjusted operating margin (-3.1%); consolidated adjusted operating margin (-4.2%); consolidated adjusted EBITDA fell to $35.1M vs $46.3M in Q3 2024, reflecting seasonal softness and unit revenue declines .

Financial Results

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$562.2	$699.1	$689.4	$561.9
GAAP Diluted EPS ($)	($2.05)	$1.73	($3.62)	($2.41)
Adjusted Diluted EPS ($)	($2.02)	$1.81	$1.23	($2.09)
Adjusted Operating Margin (%) – Consolidated	(3.1)%	9.1%	7.3%	(4.2)%
Adjusted Operating Margin (%) – Airline-only	0.1%	9.3%	8.6%	(3.1)%
Adjusted Consolidated EBITDA ($USD Millions)	$46.3	$126.1	$118.7	$35.1

Segment breakdown (Q3):

Segment	Q3 2024 Revenue ($000s)	Q3 2024 Operating Loss ($000s)	Q3 2025 Revenue ($000s)	Q3 2025 Operating Loss ($000s)
Airline	$549,127	($7,026)	$552,574	($20,201)
Sunseeker	$13,069	($19,315)	$9,358	($6,989)
Consolidated	$562,196	($26,341)	$561,932	($27,190)

Key KPIs (Scheduled Service; Q3):

KPI	Q3 2024	Q3 2025
Passengers	4,195,572	4,572,081
ASMs (000s)	4,326,870	4,769,245
Load Factor (%)	85.6%	84.3%
TRASM (¢)	12.21¢	11.19¢
Yield (¢)	5.88¢	4.94¢
Avg Fare – Scheduled ($)	$51.92	$43.44
Avg Fare – Air-related ($)	$64.63	$64.64
CASM-ex fuel & specials (¢)	8.89¢	8.47¢
Avg Fuel Cost per Gallon ($)	$2.68	$2.55

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
System ASMs YoY	FY2025	~12.0%	~12.5%	Raised
Scheduled ASMs YoY	FY2025	~13.0%	~13.0%	Maintained
Fuel Cost per Gallon	FY2025	~$2.53	~$2.55	Slightly Higher
Airline-only EPS (Adj)	FY2025	>$3.25	>$4.35	Raised
Consolidated EPS (Adj)	FY2025	>$2.25	>$3.00	Raised
Interest Expense ($mm)	FY2025	$140–$150	$135–$145	Lowered
Capitalized Interest ($mm)	FY2025	($15)–($25)	($15)–($25)	Maintained
Interest Income ($mm)	FY2025	$30–$40	$35–$45	Raised
Recurring Principal Payments ($mm)	FY2025	$160–$170	$140–$150	Lowered
Adjusted Operating Margin (Adj)	Q4 2025	N/A	10%–12%	New
Adjusted EPS (Adj)	Q4 2025	N/A	$1.50–$2.50	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
AI/Data & Tech modernization	Navitaire acceleration; recaptured revenue headwinds; enabling dynamic pricing and bundles . Withdrew FY guidance due to macro; focused on cost controls .	Investing in AI stack; Copilot/GitHub; call center/ops use cases; personalization roadmap .	Building capabilities; expected benefits expand in 2026.
Supply chain/Boeing MAX	Expect flattish 2026 capacity; MAX deliveries as replacements .	16 MAX by YE; >20% ASMs in 2026; strong reliability and ~30% fuel efficiency vs A320 .	Positive tailwind; accelerates margin expansion.
Pricing/Unit revenue (TRASM)	TRASM down double-digit in Q2; sequential improvement expected into 4Q .	TRASM down 8.4% YoY; load factors improved; expect sequential improvement in 4Q and Q1’26 .	Improving into peak periods.
Cost discipline (CASM-ex)	CASM-ex down ~8% YoY in 1H; airline-only adjusted margin 8.6% in Q2 .	CASM-ex down 4.7% YoY in Q3; maintenance/rent pressures transitory .	Sustained structural reductions; near-term maintenance noise.
Network/Fleet actions	Capacity cuts targeted at off-peak; new routes and city entries (RSW, Gulf Shores) .	Additional new markets; 51 summer routes new; ~85% contributed; MAX base transition at FLL .	Optimizing peak vs off-peak mix; selective growth.
Regional trends	—	Las Vegas underperforming but improving; resorts innovating to recapture trips .	Gradual recovery expected.
Regulatory/Macro	Risks flagged (Boeing, labor, economy) .	Government shutdown risk watched; no material impact yet .	Monitoring; manageable so far.

Management Commentary

“Impressively, we maintained our industry-leading controllable completion factor of 99.9 percent during the quarter while flying nearly 33,000 departures and transporting 4.6 million passengers” — Greg Anderson, CEO .
“Leisure booking momentum has continued… We now expect a double-digit fourth-quarter operating margin, yielding a full-year airline-only operating margin of around seven percent… raising our airline-only full-year EPS guidance to more than $4.35 per share” — Greg Anderson .
“Adjusted airline non-fuel unit costs (CASM-ex) were 8.47 cents, down 4.7% year-over-year… Airline segment reported adjusted EBITDA of $41.5 million, yielding an adjusted airline-only EBITDA margin of 7.5%” — Robert Neal, President & CFO .
“Closed on the sale of Sunseeker Resort on September 4, 2025 at a $200 million sale price… Ended the quarter with $1.2B in available liquidity” — Company statement .
“ALGT Extra now on 70% of aircraft… Planning flattish capacity in 2026… Investing in AI and data infrastructure” — Company statement .

Q&A Highlights

Capacity/2026 shape: First-half 2026 capacity down low-to-mid single digits with off-peak underweight; higher peak-day mix planned to support margins .
MAX deployment: Shift from short-haul to longer-haul as pilot training stabilizes; FLL base transitioning to solely MAX to capture stage-length fuel benefits .
TRASM vs CASM in 2026: Expect TRASM tailwinds with flattish capacity, peak mix, Allegiant Extra and loyalty contributions; MAX fuel efficiency (~105 ASMs/gal vs ~80 A320) to support margin expansion .
Vegas market: Underperforming but improving; more seasonality vs pre-pandemic; resorts deploying innovations to recapture trips .
Credit card program: Review near completion; aim to broaden relevance and spend beyond airline transactions; saw mid-20% lift in new card acquisition in Sept–Oct .

Estimates Context

How actuals compared to Wall Street consensus:

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
EPS (Adj) – Consensus vs Actual ($)	-1.872 vs -2.02	1.548 vs 1.81	0.847 vs 1.23	-1.795 vs -2.09
Revenue – Consensus vs Actual ($)	561.7M vs 562.2M	695.0M vs 699.1M	684.4M vs 689.4M	577.8M vs 561.9M
EBITDA (Adj) – Consensus vs Actual ($)	43.6M vs 46.3M	121.2M vs 126.8M	103.6M vs 119.0M	45.0M vs 35.1M

Values retrieved from S&P Global.*

Interpretation:

Q3 2025: Misses on EPS, revenue, and EBITDA amid pricing pressure and seasonal softness; cost discipline mitigated impact but unit revenue lagged (TRASM down 8.4% YoY) .
Q1–Q2 2025: Beats on EPS, revenue, and EBITDA, reflecting operational strength and cost actions (CASM-ex reductions) .

Key Takeaways for Investors

Guidance reset upward: FY25 airline-only EPS >$4.35 and consolidated EPS >$3.00 reinforce improving demand and cost execution; expect double-digit Q4 operating margin (10–12%) .
Structural margin levers in place: Allegiant Extra (~70% fleet), MAX integration (16 by YE; >20% ASMs in 2026), and Navitaire-enabled merchandising should drive TRASM/CASM spread improvement into 2026 .
Near-term watchpoints: Unit revenue recovery through holidays vs off-peak softness; maintenance/rent line pressures seen as transitory; monitor government shutdown risk .
Balance sheet flexibility: $1.2B liquidity and ongoing debt reduction (voluntary prepayments; $120M notes repaid in Oct) support fleet modernization and resilience .
Network optimization: Higher peak mix, selective route adds (~85% of new summer routes contributed) and FLL MAX base should enhance utilization and returns .
Execution priority: Flattish 2026 capacity with focus on productivity and margins—expect TRASM tailwinds to exceed CASM, aided by MAX fuel efficiency and cost discipline .
Watch Vegas normalization: Improving trajectory, but still recovering; potential upside as resorts innovate and capacity rationalizes .

Additional Press Releases (Context)

Leadership: Robert “BJ” Neal named President (retains CFO duties), expanding oversight across finance, tech, and operations—supports continued strategic and cost execution .
Network: Announced 30 new nonstop routes entering La Crosse, Trenton, Columbia, and Philadelphia (launching 1H26), aligning with leisure demand expansion strategy .

Appendix: Commentary on Non-GAAP Adjustments

Adjusted figures exclude airline special charges (accelerated depreciation, restructuring, ratification bonuses), Sunseeker sale-related charges/recoveries, and debt extinguishment losses; reconciliations provided in release/8-K .

Note: All quantitative data above sourced from company 8-K, press release, and call transcript with explicit citations. Estimates table values retrieved from S&P Global.*

Allegiant Travel CO (ALGT)·Q3 2025 Earnings Summary