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Dec 31, 2025
Allegiant Q4 2025 Earnings Report
Allegiant reported a significant increase in GAAP diluted earnings per share and adjusted airline-only diluted earnings per share for the fourth quarter of 2025, alongside a substantial rise in total operating revenue.
Key Takeaways
Allegiant Travel Company closed out 2025 with strong momentum, reporting a GAAP diluted earnings per share of $1.73 and an adjusted airline-only diluted earnings per share of $2.72 for the fourth quarter. The company achieved a 12.9 percent adjusted airline-only operating margin, exceeding initial guidance, and saw a 7.6 percent year-over-year increase in total airline-only operating revenue. Full-year adjusted diluted earnings per share reached $3.80.
Fourth quarter 2025 GAAP diluted earnings per share was $1.73, a significant improvement from a loss in the prior year.
Adjusted airline-only diluted earnings per share for Q4 2025 was $2.72, reflecting strong operational performance.
Total airline-only operating revenue for Q4 2025 reached $656.2 million, up 7.6% year-over-year.
The company achieved a 12.9% adjusted airline-only operating margin in Q4 2025, surpassing initial guidance.
Revenue by Segment
Forward Guidance
Allegiant anticipates continued positive trends into 2026, with strong demand and expected improvements in operating margin and adjusted earnings per share, driven by commercial and operational initiatives.
Positive Outlook
- Expects a 13.5 percent adjusted operating margin in Q1 2026, a four-point improvement over the prior year.
- Projects full-year adjusted earnings per share of more than $8, a 60 percent increase year-over-year.
- Continued strong demand to start the year.
- Expansion of Allegiant Extra and ongoing technology modernization are contributing meaningfully to results.
- The acquisition of Sun Country Airlines is expected to enhance Allegiant's position as a leading leisure carrier.
Challenges Ahead
- System ASMs and Scheduled service ASMs are expected to decrease by approximately 5.7% year-over-year in Q1 2026.
- Full-year 2026 System ASMs and Scheduled service ASMs are expected to decrease by approximately 0.5% year-over-year.
- Capitalized interest is projected to be negative ($10) to ($20) million for the full year 2026.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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