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Allegiant Travel Company Reports February 2025 Passenger Traffic

On March 18, 2025, Allegiant Travel Company (NASDAQ: ALGT) unveiled its preliminary passenger traffic results for February 2025. Despite a notable reduction in leisure demand, particularly during shoulder and off-peak times, Allegiant’s performance during peak weeks in March revealed positive trends.

"We are currently witnessing a decline in leisure travel demand, particularly evident in the quieter periods of the travel calendar," said Drew Wells, Allegiant’s Chief Commercial Officer. He noted that while early March has seen strong performance, the overall first-quarter expectations have adjusted with a forecasted decline in Total Revenue per Available Seat Mile (TRASM) of just over seven percent compared to the previous year. This turn of events has prompted the airline to reduce its projected capacity growth rate, downgrading the initial forecast from a 17% increase to a more conservative 13% year-over-year growth. This adjustment affects primarily the less busy travel periods.

Wells emphasized the airline’s commitment to adapting its capacity to align with prevailing demand trends, stating, "We will remain flexible with our capacity deployment to appropriately adapt to the demand environment."

Meanwhile, the airline continues to benefit from better-than-expected cost performance, as highlighted by Robert Neal, the Chief Financial Officer. He indicated that despite the challenges, the company anticipates that earnings per share will reach about $1.50, with air travel contributing approximately $1.75 per share.

Year-over-Year Passenger Traffic Analysis

The February 2025 data indicates that Allegiant served approximately 1,280,034 passengers, reflecting a 2.9% increase from February 2024’s total of 1,243,576 passengers.
In terms of revenue passenger miles (RPMs), the airline reported 1,249,948, which shows an increase of 4.7% over the prior year. Available seat miles (ASMs) also grew, rising by 10.7% to reach 1,573,230.

Despite these positive figures, the airline also faced a slight decrease in load factor, which fell to 79.5% from the previous year’s 84.0%, resulting in a drop of 4.5 percentage points. Departures for February 2025 increased by 9.7%, with a total of 9,390 flights, compared to 8,556 in February 2024. The average stage length of flights increased marginally by 2.1%, reaching 952 miles.

Overall System Performance

Across its total system, Allegiant reported serving 1,286,748 passengers in February 2025, which was a 2.6% increase from 1,253,860 in February 2024. The total available seat miles saw an increase of 10.6%, totaling 1,610,101. The number of total departures also reflected an upward trend, with 9,676 flights—up 9.4% from the previous year. The average stage length of flights also increased marginally by 2.3% to 946 miles.

Cost Projections

For February 2025, Allegiant's estimated average fuel cost per gallon was $2.70, which is a critical cost factor that affects airlines' bottom lines moving forward.

Company Overview

Founded in 1999 and based in Las Vegas, Allegiant Travel Company has grown to be a leading integrated travel company. Its core focus remains on connecting customers to essential places, experiences, and people across the nation while maintaining competitive pricing, with base airfares often less than half the average domestic roundtrip ticket.

As Allegiant navigates these fluctuating market conditions, it continues to aim for operational efficiency while keeping an eye on demand patterns. This adaptability is crucial for ensuring the airline’s resilience and growth in the competitive travel industry. For further information about Allegiant’s offerings and developments, interested parties can visit their official website at Allegiant.com.