Allegiant Travel Company has reported a fourth quarter net loss of $216.2 million or ($12.00) per diluted share on a year-over-year increase in revenue of 2.7 percent to $627.7 million.
On Tuesday (February 4, 2025), Allegiant Travel Company reported their fourth quarter and full year financial results for the period ending December 31, 2024. The carrier reported a first quarter net loss of $216.2 million or ($12.00) per diluted share on a year-over-year increase in revenue of 2.7 percent to $627.7 million. At year-end, Allegiant had $1.1 billion in available liquidity, including $832.8 million in cash and investments, and $275 million in undrawn revolving credit facilities.
In Tuesday’s announcement, Allegiant Travel Company’s CEO, Gregory Anderson, said,
“We finished the year strong with a fourth quarter adjusted airline-only earnings per share of $3.00. Thanks to the continued efforts of Team Allegiant, we made strides towards delivering on our three key initiatives outlined during 2024:
Peak Flying Restoration: Aircraft utilization during the holiday period averaged 9.6 hours per day, a 21% year-over-year increase, matching 2019 peak hours per day. The Team managed operations well, reaching a controllable completion rate of 99.7% in December.
Product Enhancements: Functionality of our third bundled product offering was restored, boosting ancillary revenue by over $1 per passenger. Combined with Allegiant Extra's premium product success and our strong cobrand credit card program, we achieved a record total ancillary revenue of over $78 per passenger during the fourth quarter.
Fleet Integration: Three MAX aircraft were delivered this quarter, totaling four in-service by year-end. Our robust and effective training program in place is providing for a smooth transition for our pilots to become certified to fly this new fleet type to Allegiant.
“The progress achieved during the quarter on these initiatives helped produce an adjusted airline-only operating margin of 13.2 percent, more than 6.5 points higher than the prior year.
“As we move into 2025, we remain focused on driving improved performance with a clear path ahead. Although our planned 17 percent increase in capacity this year will naturally pressure unit revenues, this growth should be accretive to earnings, as our infrastructure enables us to grow efficiently, and is expected to result in a sizable reduction in our unit costs.
“Capacity growth in 2025 will be achieved by higher aircraft utilization, particularly during peak leisure demand periods. We plan to take delivery of 9 MAX aircraft throughout the year, all of which have much greater earnings potential than the older A320 aircraft they will replace. Furthermore, we continue expanding our premium seating product with 56 aircraft currently fitted with Allegiant Extra, which is enhancing ancillary revenue per passenger. Collectively, these improvements are expected to result in a full-year, airline-only EPS, excluding special charges, of $9.00, an expected increase of over 50 percent compared to 2024.
“We have progressed meaningfully with our comprehensive review of Sunseeker Resort. As a result, we have launched a competitive process to sell at least a majority interest in the resort and are reviewing promising indications of interest from several investors. Given the uncertainty around the timing of any potential transaction, we will only be providing guidance for Sunseeker on a quarterly basis. That said, we expect the property will earn positive EBITDA of $2 million during the first quarter, a nearly $7 million EBITDA swing compared to the same quarter in 2024.
“Exiting 2024, we have turned a corner, setting the stage for an important year ahead. We are focused on performance and strong execution. The progress we’ve made through our key initiatives, ancillary revenue growth, and enhanced efficiency further strengthened our foundation. Thanks to the dedication of Team Allegiant, we are seeing remarkable improvements. Your efforts have once again helped land us near the top of the Wall Street Journal's list of best airlines in 2024. I am excited for the opportunities ahead and look forward to building on this success in 2025.”
Founded in 1999, Las Vegas-based Allegiant Travel Company is an integrated travel company with an airline at its heart, and a focus on linking passengers from small to medium cities to world-class leisure destinations with all non-stop flights and industry-low average fares. The company offers base airfares that are often half the price of a typical roundtrip ticket and currently operates an all-Airbus A320 Family fleet. Allegiant has also placed an order for up to 100 Boeing 737-7 and 737-8-200 MAX jets, four of which have been delivered. The company also owns and operates the recently opened Sunseeker Resort Charlotte Harbor, located on the Gulf Coast in Southwest Florida.
Source: Allegiant Travel Company