ALGT · Allegiant Travel Company

Period Performance

Allegiant Travel Company reported record airline-only operating revenue of $2.5 billion for fiscal year 2025, a 4.3% increase year-over-year. This growth was driven by a 12.6% capacity expansion and improved aircraft utilization. Airline-only operating income reached $143.9 million, yielding an operating margin of 5.7%. After adjusting for $43.5 million in special charges (non-recurring items), adjusted operating income was $187.4 million, representing an adjusted operating margin of 7.4%. The adjusted margin exceeded the target of 10.0% but fell short of the stretch goal of 15.0%, achieving 74% of target. Key cost improvements included a 6.1% reduction in airline-only operating CASM excluding fuel and special charges to 8.04 cents, driven by higher capacity and operational efficiencies.

Net income, EPS, gross profit, and gross margin were not disclosed in this amendment. The filing focuses on Part III items (directors, executive compensation, security ownership) and does not include the full income statement or balance sheet.

Balance Sheet & Liquidity

No balance sheet data is provided in this amendment. The original 10-K filing (not included here) would contain those details. However, the filing references net debt to EBITDA of 2.33 times as of the performance measurement period, which met the stretch goal of 2.40 times, indicating manageable leverage. The company successfully completed the sale of Sunseeker Resort on September 4, 2025, which likely improved liquidity and reduced debt, though exact figures are not in this document.

Cash Flow Quality

Cash flow information is not included in this amendment. The filing mentions $139.6 million in co-brand credit card remuneration (up 3.6% YoY), which is a recurring cash inflow. Capital expenditures and free cash flow are not disclosed. The company's capital allocation focuses on share repurchases (not quantified) and restricted stock grants for long-term incentives.

MD&A / Forward View

Management's discussion is limited to executive compensation and governance. Key strategic initiatives include:

• Merger with Sun Country Airlines: A definitive merger agreement was announced in January 2026, subject to regulatory approval.
• Fleet modernization: Successful integration of Boeing 737 MAX aircraft.
• Network expansion: 54 new routes and eight new cities added in 2025.
• Operational excellence: Ranked #1 in controllable completion among U.S. airlines and 2nd best airline in Wall Street Journal rankings.

The compensation committee approved 2026 performance metrics with higher weighting on financial performance. No explicit revenue or earnings guidance is provided.

Notes & Operating Detail

• Segment reporting: Only the airline segment is presented. No other segments (e.g., Sunseeker Resorts) are broken out after its sale.
• Employee compensation: CEO pay ratio of 32:1, median employee total compensation of $68,412.
• Stock-based compensation: 2025 long-term incentive grants were 50% performance-based (relative TSR and net debt/EBITDA). Performance achieved 120.3% of target.
• Buyback activity: Not disclosed in this amendment, but the company has an active stock repurchase program.
• Debt: Reference to 7.250% Senior Secured Notes due 2027 and a revolving credit facility. No changes to debt structure are noted.
• Derivatives and hedging: Not mentioned.
• Goodwill and intangibles: Not disclosed.

Overall, Allegiant demonstrated strong operational and financial performance in 2025, with record revenue, cost discipline, and solid balance sheet metrics. The pending Sun Country merger presents a significant opportunity for scale and diversification in the ultra-low-cost carrier market.