Allegiant swung to a profit of $32.1 million in the first quarter of 2025, compared to a net loss of $0.9 million in the same period last year.
The company's revenues were up 6.5% to $699.1 million, while expenses were down 1.1% to $634.1 million. Operating income soared from $15.4 million last year to $65 million in the first quarter of this year.
The company's airline results also noted an improvement with revenues up 5.7% to $668.4 million. Additionally, the airline's operating expenses were down 0.1% to $607.5 million. Operating income more than doubled from $24.2 million to $60.9 million.
However, the company pulled its full year financial outlook, with the company's CEO Gregory Anderson citing “macroeconomic uncertainty” and the turbulent demand outlook as a key driver.
He added: “Heightened volatility is impacting domestic demand… Despite the macroeconomic uncertainty, we anticipate maintaining solid profitability by leveraging our flexible model to adjust capacity as needed.”
Anderson said the company has, as of May 6, 2025, removed 7.5 points of capacity growth from May through August.
“Booking trends over the past few weeks suggest a stabilising demand environement, with indications of improvement observed over the past several days,” Andserson said. “Regardless we will continue to adjust capacity aggressively during the remainder of the year while ensuring that we appropriately address the items within our control.”
During the quarter, the company carried a total of 4.5 million passengers, up 8.4%, while capacity was up 14.2% in the period. CASM was down 12.6% to 11.14 cents. For scheduled services, the company carried 4.4 million passengers, up 8.6% with capacity up 14.4%. Additionally, revenue passenger miles (RPM) were up 10%. The scheduled load factor was down 3.3 percentage points to 80.5%.
For the second quarter, the airline expects system capacity to be up 15% and scheduled service capacity to be up 15.5%. Fuel is expected to be $2.40 per gallon. Additionally, the airline's operating margin it expected to between 6% and 8% in the second quarter. Adjusted airline earnings per share is expected to be in the range of $0.50 and $1.50. For the company's consolidated earnings, it expects around $0.00 to $1.00 per share.
As of the end of March, the company had a total liquidity of $1.2bn and generated $191.4 million in cash from operations during the first quarter. The company's capital expenditures for the quarter totalled $83.1 million, which included $64.8 million for aircraft-related spend.