Allegiant Travel Company reported a total operating revenue of $2.61 billion for the fiscal year ending December 31, 2025, marking a 3.7% increase from $2.51 billion in 2024. The airline's passenger revenue rose by 4.8% to $2.32 billion, driven by a 10.5% increase in scheduled service passengers, despite a 5.3% decline in average fare due to industry demand softness. The company achieved a controllable completion rate of 99.9% and reduced its operating cost per available seat mile (CASM), excluding fuel and special charges, to 8.04 cents, down 6.1% from the previous year.
In a significant strategic move, Allegiant announced its intention to acquire Sun Country Airlines on January 11, 2026. The merger agreement, which is expected to close in the second half of 2026, will see Allegiant expand its operational capacity and network. The acquisition is anticipated to enhance Allegiant's ability to respond to market demand and improve operational flexibility. The company also completed the sale of its Sunseeker Resort in September 2025, aligning with its focus on core airline operations.
Operationally, Allegiant expanded its network by announcing 54 new routes, including service to eight new cities, and as of February 1, 2026, was selling travel on 578 routes to 126 cities. The airline's fleet consisted of 123 aircraft, with plans to acquire 34 additional aircraft by 2028. The company reported a total of 18.7 million passengers flown in 2025, a notable increase from 17 million in 2024.
Allegiant's financial position remains strong, with unrestricted cash and cash equivalents totaling $838.5 million as of December 31, 2025. The company has $250 million of undrawn capacity under revolving credit facilities, providing ample liquidity to support its operations and growth initiatives. However, the company also carries a total debt of $1.8 billion, which may limit its financial flexibility in the future.
Looking ahead, Allegiant anticipates continued growth in passenger demand and operational capacity, although it acknowledges potential challenges from fluctuating fuel prices and economic conditions. The company aims to leverage its unique business model focused on leisure travel in underserved markets to maintain its competitive edge and achieve long-term profitability.
About Allegiant Travel CO
Allegiant Travel Company operates a low-cost, leisure-focused airline serving under-served small and mid-sized U.S. cities with nonstop flights to popular vacation destinations. Its business model emphasizes low base fares supplemented by ancillary fees for optional services and third-party travel products. Allegiant’s direct-to-consumer sales, flexible capacity management, and broad route network target price-sensitive leisure travelers, leveraging data-driven marketing and loyalty programs to enhance customer engagement and revenue.
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