Allegiant Travel Co

Latest Results (13.01.2025):

Revenue and Expenses

In the third quarter of 2024, Allegiant Travel Co reported total operating revenue of $562.2 million, a slight decrease of 0.6% compared to the same period in 2023. The total operating expense for the quarter was $588.5 million, reflecting a 0.9% increase from the previous year. This resulted in an operating loss of $26.3 million, which is a 46.9% increase in loss compared to the third quarter of 2023.

Net Loss and Earnings Per Share

Allegiant Travel Co experienced a net loss of $36.8 million in the third quarter of 2024, marking a 46.6% increase in net loss from the previous year. The diluted loss per share was reported at $2.05, compared to a loss of $1.44 per share in the third quarter of 2023, representing a 42.4% increase in loss per share.

Airline Segment Performance

The airline segment of Allegiant Travel Co reported an operating revenue of $549.1 million for the third quarter of 2024, a 2.9% decrease from the previous year. The airline operating expense was $556.2 million, slightly down by 0.6% year-over-year. The airline segment recorded an operating loss of $7.0 million, compared to an operating income of $5.8 million in the third quarter of 2023.

Special Charges Impact

During the third quarter of 2024, Allegiant Travel Co recognized $7.7 million in airline special charges, a significant reduction of 49.3% from the $15.2 million reported in the same period of 2023. The Sunseeker special charges, net of recoveries, were $1.1 million, down 93.7% from the previous year. Excluding these special charges, the company reported a net loss of $36.1 million.

Outlook and Strategic Initiatives

Allegiant Travel Co is focusing on several strategic initiatives to improve its financial performance. These include restoring peak utilization, integrating Boeing MAX aircraft, and enhancing revenue initiatives. The company anticipates a temporary decline in demand due to recent hurricanes but expects demand to normalize by the end of the year. Allegiant is also working on optimizing the value of its Sunseeker Resort asset and remains committed to improving its financial performance in 2025 and beyond.