Allegiant Travel reported adjusted earnings of $2.86 per share for the quarter ended December 31, 2025, surpassing the Zacks Consensus Estimate of $2.01 by 42%. This represents a 36% year-over-year increase from $2.10 per share in Q4 2024. Total revenue rose 24% to $652 million, topping analyst forecasts by $18 million. The company attributed the revenue gain to higher ancillary revenues and continued expansion of its route network, particularly in underserved secondary markets.

Passenger revenue per available seat mile (PRASM) improved 8% year-over-year, driven by an increase in load factor from 84.5% to 87.2%. Total capacity, measured in available seat miles (ASM), grew 9% as Allegiant added six new cities and deployed two additional Airbus A320neos. Jet fuel expense averaged $2.12 per gallon, down 15% sequentially and 10% year-over-year, contributing to an operating margin of 20.8%, up from 17.5% in the prior year. Management reiterated full-year 2026 guidance for mid-teens margin growth, citing continued soft fuel costs and tight cost controls.

As of December 31, Allegiant held $485 million in unrestricted cash and short-term investments, with total debt of $1.2 billion. Free cash flow for Q4 was $138 million, reflecting strong cash conversion on higher earnings. The board approved repurchase of up to $100 million of common stock over the next 12 months and increased the quarterly dividend by 10% to $0.11 per share. Capital expenditures for 2026 are projected at $270 million, primarily for aircraft maintenance and interior retrofits on the A320neo fleet.