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SEC filingAllegiant's Q3 revenue flat at $561.9M; airline CASM-ex fuel & special charges fell 4.7% on capacity growth.
In the third quarter of 2025, Allegiant reported total consolidated operating revenue of $561.9 million, essentially flat compared to the same period in 2024. Passenger revenue increased 1.1% to $494.1 million, driven by a 9.0% increase in scheduled service passengers and an 11.0% increase in departures. However, this growth was offset by a 7.3% decline in total average fare per passenger, primarily due to a 16.3% drop in base fares amid industry demand softness. Fixed fee contract revenue fell 8.3% to $18.9 million due to lower aircraft availability for charter services, while resort and other revenue declined 27.9% to $9.5 million because of the sale of Sunseeker Resort on September 4, 2025, which reduced resort operations to roughly one month in the quarter.
On the cost side, airline operating CASM excluding fuel and special charges improved 4.7% to 8.47 cents, benefiting from a 9.7% increase in available seat miles (ASMs) with no increase in average aircraft count. Salaries and benefits per ASM dropped 5.4%, though absolute salaries rose 3.6% due to higher flight crew wages. Aircraft fuel expense per ASM declined 7.0% as lower fuel prices partially offset higher consumption. Maintenance and repairs expense surged 31.8% on higher rotable part repairs. Interest expense net increased 45.5% to $7.8 million due to lower capitalized interest as new 737 MAX aircraft were placed in service.
The airline segment (passenger, third-party, and fixed-fee revenue) generated $552.4 million in revenue, up 0.6% YoY. Passenger revenue growth was supported by strong ancillary revenue from the Allegiant Extra product and travel insurance, but base fare weakness persisted. The resort segment contributed only $9.5 million, down sharply due to the divestiture. The sale aligns with Allegiant's strategic focus on its airline operations.
Management highlighted ongoing macroeconomic uncertainty and softened leisure demand, which continue to pressure fares and load factors. Capacity growth remains a priority, with 12 new routes and three new cities added in Q3, and the airline has identified over 1,400 potential domestic routes. Fleet renewal is underway with 34 Boeing 737 MAX aircraft on order through 2028; 15 airframes have been retired, and nine more retirements are scheduled through 2026. The pilot retention bonus accrual reached $215 million, payable upon ratification of a new contract. Liquidity remains strong at $991.3 million in cash and investments, with $175 million undrawn on credit facilities. No formal guidance on revenue or earnings was provided, but management expects continued cost discipline and capacity growth to support margins.