Allegiant Reports February 2025 Traffic
Rhea-AI Summary
Allegiant Travel Company (NASDAQ: ALGT) has reported its February 2025 traffic results, indicating challenges in leisure demand during shoulder and off-peak periods. While peak March weeks show strong performance with TRASM (Total Revenue per Available Seat Mile) nearly matching last year's levels, the company expects first quarter TRASM to decline by over 7% year-over-year.
In response to current demand trends, Allegiant is reducing its full-year capacity forecast from 17% to 13% growth year-over-year, primarily affecting shoulder and off-peak periods. Despite these challenges, the company's cost performance is exceeding expectations, with projected consolidated earnings per share at approximately $1.50, and airline operations contributing around $1.75 per share.
Positive
- Better-than-expected cost performance in Q1 2025
- Strong performance during peak March weeks
- Proactive capacity management to adapt to demand environment
Negative
- Q1 TRASM expected to decline over 7% year-over-year
- Experiencing leisure demand softness in shoulder and off-peak periods
- Reduction in full-year capacity forecast from 17% to 13%
News Market Reaction – ALGT
On the day this news was published, ALGT declined 3.30%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
"Consistent with recent industry commentary, we are experiencing leisure demand softness, predominantly observed during the shoulder and off-peak periods," stated Drew Wells, Chief Commercial Officer of Allegiant Travel Company. "Peak March weeks are performing strong with TRASM nearly in line with the same weeks in the prior year, despite significant growth. However, given the shoulder period weakness, we now expect first quarter TRASM to decline just over seven percent from the prior year. Due to current demand trends, we will reduce our full-year capacity forecast from up 17 percent to up 13 percent year-over-year, with cuts primarily affecting the shoulder and off-peak periods. We will remain flexible with our capacity deployment to appropriately adapt to the demand environment."
"We are seeing better-than-expected cost performance during the quarter," stated Robert Neal, Chief Financial Officer of Allegiant Travel Company. "We anticipate our consolidated earnings per share will come in at the lower end of our initial guide at approximately
Scheduled Service – Year Over Year Comparison | |||
February 2025 | February 2024 | Change | |
Passengers | 1,280,034 | 1,243,576 | 2.9 % |
Revenue passenger miles (000) | 1,249,948 | 1,194,104 | 4.7 % |
Available seat miles (000) | 1,573,230 | 1,421,672 | 10.7 % |
Load factor | 79.5 % | 84.0 % | (4.5pts) |
Departures | 9,390 | 8,556 | 9.7 % |
Average stage length (miles) | 952 | 933 | 2.1 % |
Total System* – Year Over Year Comparison | |||
February 2025 | February 2024 | Change | |
Passengers | 1,286,748 | 1,253,860 | 2.6 % |
Available seat miles (000) | 1,610,101 | 1,456,189 | 10.6 % |
Departures | 9,676 | 8,846 | 9.4 % |
Average stage length (miles) | 946 | 924 | 2.3 % |
*Total system includes scheduled service and fixed fee contract. System revenue passenger miles and system load factor are not useful statistics as system available seat miles include both ASMs flown by fixed fee flying as well as non-revenue producing repositioning flights used for operational needs. Fixed fee flying is better measured through dollar contribution versus operational statistics. |
Preliminary Financial Results | |
$ per gallon | |
February 2025 estimated average fuel cost per gallon - system | |
Allegiant Travel Company
ALGT/G
Note: This news release was accurate at the date of issuance. However, information contained in the release may have changed. If you plan to use the information contained herein for any purpose, verification of its continued accuracy is your responsibility.
For further information please visit the company's investor website: ir.allegiantair.com
Reference to the Company's website above does not constitute incorporation of any of the information thereon into this news release.
Allegiant Media Contact: | Investor Inquiries: | |
Sonya Padgett | Sherry Wilson | |
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SOURCE Allegiant Travel Company