Allegiant Travel Company Reports $689.4 Million Revenue and $67.5 Million Operating Loss in Q2 2025

Allegiant Travel Company reported a total operating revenue of $689.4 million for the second quarter of 2025, reflecting a 3.5% increase from $666.3 million in the same period last year. The growth was primarily driven by a 3.9% rise in passenger revenue, which reached $617.9 million, attributed to an 11% increase in scheduled service passengers. However, the company faced an operating loss of $67.5 million, largely due to a $100.4 million write-down related to the pending sale of the Sunseeker Resort, which is expected to close in September 2025 for approximately $200 million.

In comparison to the previous fiscal period, Allegiant's operating expenses surged to $756.9 million, up from $631.4 million a year earlier. This increase was influenced by special charges totaling $117.9 million, which included costs associated with corporate restructuring and the write-down of the Sunseeker Resort. The airline segment reported an operating income of $43.2 million, yielding a margin of 6.5%, while the overall loss before income taxes was $88.6 million.

Operationally, Allegiant saw a significant increase in customer engagement, with 5.1 million passengers transported in the second quarter, a 10.9% rise from the previous year. The airline's available seat miles (ASMs) increased by 15.7%, indicating a capacity expansion. The company also reported a total of 20 million active members in its Allways Rewards program, reflecting a growing customer base. Additionally, Allegiant announced five new nonstop routes during the quarter, further enhancing its geographic reach.

The company’s financial position showed a decrease in total assets, which fell to $4.39 billion from $4.43 billion at the end of 2024. Cash and cash equivalents decreased to $209.9 million, while total liabilities remained relatively stable at $3.33 billion. Allegiant's long-term debt and finance lease obligations decreased to $1.96 billion, down from $2.08 billion at the end of the previous year, indicating a focus on debt reduction.

Looking ahead, Allegiant plans to continue expanding its network and enhancing operational efficiency, despite facing challenges from macroeconomic conditions affecting leisure travel demand. The company remains committed to optimizing aircraft utilization and managing costs effectively. Allegiant's management expressed confidence in its liquidity position, supported by cash reserves and undrawn credit facilities, to navigate the upcoming fiscal period and capitalize on growth opportunities.