Allegiant reported a consolidated net loss of $216.2 million, or $12 loss per share, in the fourth quarter of 2024, widening from its $2 million loss, or 13 cent loss per share, a year prior. Revenues for the period climbed 2.7% to $627.7 million, while operating expenses outpaced and surpassed revenues — climbing 48.5% to $891.7 million.
The company's fourth quarter operating loss totalled $264 million, falling from its operating income of $10.6 million in the same period in 2023.
“We have progressed meaningfully with our comprehensive review of Sunseeker Resort,” said Allegiant Travel Company CEO and president Gregory Anderson.
The company's resort recorded an operating loss of $382.2 million for the year and $30.5 million for the quarter. Revenues for the resort totalled $71.8 million in the year and only $2.9 million for the quarter. Expenses for the resort far outweighed revenues, with full year expenses totalling $453.9 million and $33.4 million for the quarter.
As a result of the poor performance, the company is looking to sell off its interest in the resort.
“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,” continued Anderson. “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.”
Anderson said in the call that it had received “promising” interest from “well-known high-quality investors”. The company expects a transaction to be secured by summer. “If all went well, it could be early summer,” said Anderson.
During the company's earnings call on February 5, 2025, the company's CFO Robert Neal said the company has “fully repaid the debt associated with Sunseeker assets”. Neal said this will give it more flexibility as evaluates “strategic alternatives” for Sunseeker.
In addition, the resort's depreciation expenses are expected to be around $3 million in the quarter with an occupancy rate of approximately 60%.
The airline's fourth quarter results were more positive, with net adjusted net income for the quarter totalling $55.6 million, up from $15.9 million. Airline operating revenues were flat at a positive 0.3%, totalling $609.7 million. Airline expenses for the quarter were down 9.5% to $531.7 million. The airline's operating income more than doubled from $20.6 million in 2023, up to $78.1 million.
For the full year, the company's consolidated operating revenues were flat at $2.5bn and operating expenses up 20.3% to $2.8bn. Operating loss for the year was $240 million, swinging from 2023's operating income of $221 million. The company's annual net loss amounted to $240.2 million, or $13.49 loss per share, swinging from its net profit of $117.6 million, or $6.29 earnings per share, in 2023.
The airline's annual operating revenues were down 2.6% to $2.4bn, while expenses were up 1.9% to $2.3bn. Operating income was down 43.5% to $142.2 million and its adjusted airline-only net income was $107.5 million, down 34.7%.
The company ended the year with 125 aircraft in its operating fleet — retiring one A320neo and placed three 737 MAXs into service. The company expects nine 737 MAX deliveries in 2025.
“While Boeing's recent estimates have 12 aircraft delivering to us during 2025, we're planning conservatively to keep a better balance of type-rated flight crews with aircraft available to operate, particularly through our summer peak,” said Neal.
The company plans to retire 12 aircraft in 2025, aiming to close the year with 122 aircraft in service. “Should aircraft deliveries exceed our expectations this year, we are prepared to accelerate exit of A320 family aircraft once we have more visibility into 2026,” he added.
For the first quarter of 2025, the company expects a consolidated earnings per share of $1.50-$2.50. Consolidated system capacity is expected to be up 13.5% in the quarter and scheduled capacity is set to be up 14%. Fuel is expected to cost around $2.60 per gallon.
The company's net debt at the end 2024 was $1.2bn and had a total available liquidity of $1.1bn.