Allegiant Travel reports Q2 adjusted EPS $1.23, consensus 85c

Reports Q2 revenue $689.4M, consensus $684.36M. Reports Q2 adjusted airline-only diluted earnings per share of $1.86 vs. $2.24 last year. “During the quarter, we operated 37,000 flights – the highest quarterly total in company history,” stated CEO Gregory Anderson. “Equally important, we achieved a remarkable 99.9% controllable completion factor, which we believe is among the top in the industry. I’m incredibly proud of Team Allegiant for delivering such strong operational results…We achieved an adjusted airline-only operating margin of 8.6% in Q2, surpassing our initial projections. Despite a challenging demand environment, our first-half operating margin improved over 2024. This improved performance is the result of higher productivity of our existing assets with aircraft utilization up nearly 17% year over year combined with strong cost controls. Impressively, we drove an industry leading reduction in unit costs, excluding fuel and special charges, of nearly eight percent year over year…We are encouraged by improving consumer confidence and are cautiously optimistic as recent bookings suggest strengthening of domestic demand in the second half of the year, as compared to previous levels…As we look to 2026, we are currently forecasting full-year capacity to be roughly flat on a year-over-year basis, with MAX deliveries slated as replacement aircraft as we maintain our goal of ‘peaking the peaks’…”