Allegiant swung to a net loss of $65.2 million in the second quarter of 2025, compared to a net profit of $13.7 million a year prior. Adjusted net income was $22.7 million, down 30.2%.
The company reported an operating loss of $67.5 million, down from its operating profit of $34.9 million last year. Consolidated revenues were up 3.5% to $689.4 million and operating expenses climbed 19.9% to $756.9 million.
The airline-only revenues were up 3% to $668.8 million, and operating expenses up 3.8% to $625.6 million. The airline reported an operating income of $43.2 million, down 8.1%. Adjusted airline only net income was $34.3 million, down 16.3%.
The company's CFO Robert Neal said the airline only adjusted earnings per share of $1.86, down 17%, had exceeded its initial expectations by $1.
Allegiant Travel Company CEO Gregory Anderson said the company achieved an airline-only second quarter adjusted operating margin of 8.6%, which surpassed its initial projections, down 1.7 percentage point.
He added: “Despite a challenging demand environment, our first-half operating margin improved over 2024. This improved performance is the result of higher productivity of our existing assets with aircraft utilisation up nearly 17% year over year combined with strong cost controls.”
The company said it is continuing to take actions to “structurally lower” its airline costs, with cost improvements made this year allowing to rebalance its infrastructure, particularly when considering the significant delivery delays in prior years. Additionally, Allegiant is simplifying its business and focussing on its “core strengths” through its pending sale of its Sunseeker Resort.