- Allegiant Travel Company (ALGT, Financial) reports a 14.4% increase in scheduled service passengers in March 2025.
- Available seat miles grew by 20.7%, while load factor decreased by 3.5 percentage points to 82.4%.
- Average fuel cost per gallon for Q1 2025 was $2.61.
In March 2025, Allegiant Travel Company (NASDAQ: ALGT) experienced a notable 14.4% year-over-year increase in scheduled service passengers, reaching a total of 1,887,902. Additionally, revenue passenger miles surged by 15.9% to 1.82 million, reflecting robust demand for the airline's services.
The company's available seat miles expanded significantly by 20.7% to 2.21 million; however, this growth outpaced the increase in passenger numbers, leading to a 3.5 percentage point decline in load factor, now at 82.4%. This indicates an operational challenge where capacity growth is surpassing the airline's ability to fill seats efficiently.
The number of departures saw a substantial rise of 21.1%, amounting to 13,407 flights conducted in March 2025. For the first quarter of 2025, passenger numbers grew by 8.6% to 4.42 million, with available seat miles increasing by 14.4%. Despite these positive metrics, the Q1 load factor decreased by 3.3 percentage points to 80.5%.
Fuel costs continue to be a vital operational consideration, with the system-wide average cost per gallon at $2.52 in March and $2.61 for the entire first quarter of 2025. These costs impact margins, particularly when combined with lower load factors, as fixed expenses are spread across a smaller base of revenue-generating passengers.
Overall, Allegiant's March 2025 traffic report highlights a strong market demand, but the discrepancy between capacity and demand growth presents potential financial challenges. The company will need to address these efficiency issues to optimize its unit revenue metrics moving forward.
