Allegiant Sees 9.6% YoY Passenger Traffic Increase in June 2025

Allegiant Travel Company reported a 9.6% YoY increase in June 2025 passenger traffic, with 2,005,932 scheduled service passengers. Q2 2025 total passenger count rose 11.0% YoY to 5,077,788, but the load factor decreased by 2.8 percentage points to 81.9%. Average fuel cost for Q2 2025 was $2.42 per gallon. Departures increased 13.5% in June 2025.

Allegiant Travel Company (NASDAQ: ALGT) reported a significant 9.6% year-over-year (YoY) increase in June 2025 passenger traffic, with 2,005,932 scheduled service passengers. The company's second quarter (Q2) 2025 total passenger count rose by 11.0% YoY to 5,077,788, despite a decline in the load factor by 2.8 percentage points to 81.9%. The average fuel cost for Q2 2025 was $2.42 per gallon, while departures increased by 13.5% in June 2025 [1].

The increase in passenger traffic reflects Allegiant's strategy of connecting travelers from small and medium-sized cities to vacation destinations with non-stop flights. The company's focus on affordable base airfares, which are less than half the cost of the average domestic roundtrip ticket, has been a key factor in its growth [2].

In addition to its strong passenger traffic performance, Allegiant has also been expanding its route network. The company announced the launch of seven new nonstop routes in July 2025, further bolstering its Florida footprint [1]. This expansion comes as Allegiant continues to invest in its fleet, having recently borrowed $158.6 million secured by Boeing 737-Max aircraft [1].

Analysts have been closely monitoring Allegiant's operational metrics, with UBS trimming its price target on the company to $59 from $60 and maintaining a Neutral rating [1]. Despite the slight decrease in the load factor, the company's stable demand and operational efficiency are expected to drive profitability in the near future [1].

Allegiant's recent agreement to sell its Sunseeker Resort Charlotte Harbor and related properties to affiliates of Blackstone Real Estate Group for $200 million in cash is also a notable development. This transaction is expected to close in the third quarter of 2025, subject to customary conditions and adjustments [1]. The sale includes the resort's 785-room waterfront property, golf course, and various amenities.

In conclusion, Allegiant Travel Company's strong June passenger traffic growth, route expansion, and operational efficiency indicate a promising outlook for the company. The company's focus on affordable airfares and strategic route expansion has positioned it well to capitalize on the growing demand for non-stop flights to vacation destinations.

References:
[1] https://www.marketscreener.com/news/allegiant-travel-passenger-traffic-rises-in-june-ce7c5fddd18af02c
[2] https://ca.investing.com/news/company-news/allegiant-reports-96-increase-in-june-passenger-traffic-93CH-4129615