Allegiant Travel CO
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
ALGT$91.97+5.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001362468-25-000022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001362468-25-000042
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 102 previous paragraphs and 143 current paragraphs.
37 unchanged; 40 reworded; 55 added; 25 removed; 0 previous and 11 current paragraphs rearranged.
Tables are not compared: 5 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (55)
Current report
Second Quarter 2025 Review
Current report
Second quarter 2025 highlights include:
Current report
•Operating loss of $67.5 million primarily due to the Sunseeker write-down charge
Current report
•Airline-only operating cost per available seat mile (CASM), excluding fuel and special charges of 7.68 ¢, down 6.7 percent year-over-year
Current report
•During the second quarter, expanded the network by announcing five new nonstop routes
Current report
◦In July announced seven new nonstop routes connecting 12 cities across the country
Current report
•In early July 2025, entered into a contract to sell Sunseeker Resort and related properties for $200.0 million (subject to adjustments)
Current report
◦The transaction is scheduled to close in September 2025
Current report
(3)These numbers exclude four Boeing 737-8200 aircraft of which we have taken delivery but which have not been placed in service as of June 30, 2025.
Current report
Consumer confidence has vacillated during the current year, which along with other macroeconomic and airline industry events, have contributed to a decline in consumer spending generally and, in particular, softened demand for domestic, leisure air travel. These factors have impacted our fares, load factors, and profitability. Our results of operations may continue to be impacted if these conditions persist. We continue to monitor how these factors could impact our business and take steps to mitigate their effect on our business.
Current report
In July 2025, we entered into an agreement to sell the Sunseeker Resort, including the Aileron Golf Course and related assets, to affiliates of Blackstone Real Estate Group for approximately $200 million (subject to certain adjustments) payable in cash at closing. The transaction is expected to close in September 2025, subject to customary closing conditions. The accounting impacts of the transaction are more fully described in Note 11 to our consolidated financial statements (unaudited) in this Form 10-Q.
Current report
Fixed fee contract revenue. Fixed fee contract revenue decreased $0.7 million or 3.8 percent compared to second quarter 2024. Although there was an increase in revenue from sports flying compared to the prior year quarter, this was slightly outpaced by a decrease in flying for the Department of Defense and a decrease in international flying for Apple Vacations.
Current report
Salaries and benefits expense. Airline salaries and benefits expense increased $6.1 million or 3.1 percent compared to second quarter 2024. The increase was primarily attributable to increased flight crew wages due to a 17.1 percent increase in total block hours flown compared to second quarter 2024.
Current report
Sunseeker Resort depreciation and amortization decreased $2.5 million or 40.9 percent compared to second quarter 2024, primarily as the result of an impairment charge recorded in fourth quarter 2024 which reduced the carrying amount of Resort assets. With Sunseeker Resort now being accounted for as assets held for sale, there will be no further depreciation recorded on these assets in the future.
Current report
Maintenance and repairs expense. Maintenance and repairs expense increased $5.6 million or 18.4 percent compared to second quarter 2024, primarily as the result of the 15.7 percent capacity increase. On a per ASM basis, maintenance expense increased 3.3 percent as the result of a slight increase in rotable removals, which contributed approximately $1.6 million to the increase.
Current report
Sunseeker Resort sales and marketing expense remained relatively flat, with a $0.1 million increase compared to second quarter 2024.
Current report
Aircraft lease rentals. Aircraft lease rental expense increased $5.3 million compared to second quarter 2024. During second quarter 2025, we began to accrue estimated lease return costs for certain aircraft on operating leases related to redeliveries in 2025 and future years.
Current report
Other operating expense. Airline other operating expenses increased by $5.6 million primarily as the result of a lower amount of gains on the sale of flight equipment compared to the prior year quarter (resulting in a smaller offset to other operating expense in second quarter 2025).
Current report
Sunseeker Resort other operating expense increased $1.4 million or 12.6 percent compared to second quarter 2024, primarily as the result of outsourcing certain functions, including housekeeping, which were performed by employees during the prior year quarter.
Current report
Special charges. In second quarter 2025, we recorded $117.9 million in special charges.
Current report
The Airline recorded $14.6 million in special charges, mostly related to corporate restructuring efforts taken in response to softness in air travel demand due to heightened macroeconomic uncertainty. These efforts included voluntary separations of corporate and operational personnel, termination of certain marketing agreements and abandonment of certain IT assets no longer being used.
Current report
Sunseeker Resort special charges consisted of a $100.4 million write down to fair value less costs to sell related to the pending sale of Sunseeker Resort to a third-party buyer, retention pay for certain key employees, and damages (net of insurance recoveries) from weather and related events. Refer to Note 2 and Note 11 of our consolidated financial statements (unaudited) in this Form 10-Q for additional details.
Current report
Comparison of six months ended June 30, 2025 to six months ended June 30, 2024
Current report
Operating Revenue
Current report
Third party products revenue. Third party products revenue decreased $1.6 million or 2.3 percent compared to the six months ended June 30, 2024. The decrease is primarily the result of a $5.3 million decrease in the marketing component of co-brand revenue as certain bonus compensation was phased out in late 2024. This was partially offset by a $2.2 million increase in revenue from our travel insurance product, which was implemented during first quarter 2024 and by a $1.6 million increase in car rental revenue, on a 1.6 percent increase in rental car days sold.
Current report
Resort and other revenue. Resort revenues increased $10.6 million or 26.1 percent compared to the six months ended June 30, 2024. Resort occupancy was 60.6 percent in the first half of 2025 compared to 36.1 percent in the first half of 2024, which represented a significant improvement year over year. Revenue driven by increased occupancy was partially offset by a decrease in average daily rate to $259 from $295 during the first half of 2024. A $2.1 million year-over-year increase in banquet revenue also contributed to the increase in Resort revenue.
Current report
Operating Expenses
Current report
Airline operating CASM, excluding fuel and airline special charges. Airline operating CASM, excluding fuel and airline special charges decreased by 7.8 percent to 7.87 ¢ for the six months ended June 30, 2025 compared to 8.54 ¢ for the same period in 2024. The primary driver of the CASM-ex decrease was a 15.0 percent increase in ASMs as we grew into our existing infrastructure. In particular, we achieved the increased capacity with only a small increase in the average number of aircraft in service and without any increase in the number of full-time equivalent employees. A majority of expense line items were lower on a per ASM basis due in part to the increase in capacity.
Current report
Salaries and benefits expense. Salaries and benefits expense increased $22.3 million, or 5.3 percent, compared to the six months ended June 30, 2024.
Current report
Aircraft fuel expense. Aircraft fuel expense decreased $8.1 million, or 2.4 percent, compared to the six months ended June 30, 2024. This was primarily driven by a 14.0 percent decrease in average fuel cost per gallon. The decrease in fuel cost was partially offset by a 13.5 percent increase in fuel gallons consumed on a 15.0 percent increase in total available seat miles. Fuel efficiency increased 1.3 percent year over year.
Current report
Sales and marketing expense. Sales and marketing expense decreased $6.5 million or 11.1 percent compared to the six months ended June 30, 2024.
Current report
Airline sales and marketing expense decreased $6.3 million or 11.5 percent, primarily driven by a decrease in sponsorship expenses, an offset to expense for a non-recurring item related to our credit card agreement, and a decrease in certain online advertising. These decreases were partially offset by an increase in credit card processing fees, in line with a 5.1 percent increase in passenger revenue.
Current report
Aircraft lease rentals. Aircraft lease rental expense increased $5.2 million compared to the six months ended June 30, 2024. During second quarter 2025, we began to accrue estimated lease return costs for certain aircraft on operating leases related to redeliveries in 2025 and future years.
Current report
Other operating expense. Airline other operating expense decreased $6.6 million or 11.5 percent primarily as the result of a lower amount of gains on the sale of flight equipment compared to the prior year period (resulting in a smaller offset to other operating expense in the 2025 period).
Current report
Sunseeker Resort other operating expense increased $1.8 million or 7.7 percent compared to the six months ended June 30, 2024, primarily as the result of outsourcing certain functions, including housekeeping, which were performed by employees during the same period in the prior year.
Current report
Special charges. During the six months ended June 30, 2025, we recorded $116.4 million of special charges.
Current report
The Airline recorded $16.0 million in special charges, mostly related to corporate restructuring efforts taken in response to softer air travel demand due to heightened macroeconomic uncertainty. These efforts included voluntary separations of corporate and operational personnel, termination of certain marketing agreements and abandonment of certain IT assets no longer being used. Airline special charges also included $3.9 million for accelerated depreciation on airframes identified for early retirement.
Current report
Sunseeker Resort special charges consisted of a $100.4 million write down to fair value less costs to sell related to the pending sale of Sunseeker Resort to a third-party buyer at a price lower than its carrying value, retention pay for certain key employees, and damages (net of insurance recoveries) from weather and related events. Refer to Note 2 and Note 11 to our consolidated financial statements (unaudited) in this Form 10-Q for additional details.
Current report
Interest Expense and Income
Current report
Interest expense, net of interest income and capitalized interest, increased by $9.7 million, or 28.8 percent, compared to the six months ended June 30, 2024. The increase was driven by an $11.7 million decrease in capitalized interest as nine aircraft from our 737 MAX order have been placed in service since June 30, 2024. In addition, we recognized a $3.4 million loss on debt extinguishment related to the early prepayment of the Sunseeker construction loan in February 2025. The increase was offset by a $6.6 million decrease in interest expense, excluding the loss on debt extinguishment, resulting from an 11.6 percent decrease in outstanding debt year over year.
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Removed paragraphs (25)
Previous report
First Quarter 2025 Review
Previous report
First quarter 2025 highlights include:
Previous report
•Record total average ancillary fare of $79.28 per passenger, up 4.7 percent year-over-year driven by reintroduction of a third ancillary product bundle offering, Allegiant Extra expansion, Allianz travel insurance, and cobrand credit card strength
Previous report
•Airline-only operating income of $60.9 million, yielding an airline-only operating margin of 9.1 percent, a more than five-point improvement over the prior year
Previous report
•Income before income taxof$41.9 million, yielding a pre-tax margin of 6.0 percent
Previous report
•Airline-only operating CASM, excluding fuelof 8.07 ¢, down 9.0 percent year-over-year
Previous report
•As of March 31, 2025, we had 558,000 total Allegiant Allways Rewards Visa cardholders
Previous report
•The only US Airline named by Newsweek as one of America's Most Loved Brands 2025
Previous report
The Presidential administration is in the process of expanding the scope of tariffs and significantly increasing the tariff rates on goods imported into the U.S. In response, foreign governments have imposed, and are expected to impose, retaliatory measures against the U.S.
Previous report
These or additional changes in U.S. or international trade policies, along with continued uncertainty surrounding these policies, could lead to continuing weakness in the airline and hospitality industries, which may adversely impact our operations through increased supply chain challenges, commodity price volatility and a decline in discretionary spending and consumer confidence, among others. We continue to monitor how these factors could impact our business.
Previous report
Boeing Agreement
Previous report
We have signed an agreement and amendments with Boeing to purchase 50 newly manufactured 737 MAX aircraft with options to purchase up to an additional 80 737 MAX aircraft. We took delivery of four 737 MAX aircraft in 2024 and four in the first quarter of 2025, all of which have entered revenue service. We believe this new aircraft purchase is complementary with our low-cost strategy based on our intent to retain ownership of the aircraft, the longer useful life for depreciation purposes, and expected fuel savings and operational reliability from the use of these new aircraft.
Previous report
In the interest of increased quality control at Boeing and its suppliers, the FAA has indicated aircraft production rates will be capped until they are satisfied with Boeing's quality practices. These factors, other delays in Boeing obtaining needed regulatory approvals, and other factors impacting Boeing could delay deliveries to us. At this time, we currently expect eight more aircraft to be delivered to us in the last three quarters of 2025.
Previous report
New Reservation System
Previous report
During 2023, we converted to the Navitaire reservation system to replace our legacy home-grown system. While we expect incremental passenger revenue once this system is fully implemented, we suffered some per passenger air ancillary revenue degradation (in the area of bundled ancillary products in particular) as certain functionality was unavailable during the transition. We restored functionality around our third bundled product offering in late 2024 and will continue to devote resources to the transition issues. We currently expect to regain all the lost per passenger revenue during the first half of 2025 and begin to achieve some of the expected incremental per passenger revenue in the first half of 2026.
Previous report
Sunseeker Resort at Charlotte Harbor opened in December 2023. As with many new hotels or resorts, Sunseeker's booking and occupancy rates are lower than more established properties. Although Sunseeker produced operating income in the three months ended March 31, 2025, we expect losses to continue in 2025. We have hired experienced advisors to seek a capital partner to purchase the Resort or an interest in the Resort. These efforts are progressing but remain subject to many uncertainties and may not be successful.
Previous report
We believe this alliance is consistent with the DOT's goal of providing maximum benefits to the public, as the alliance is expected to increase competition, reduce transborder fares and provide increased nonstop service for our consumers traveling between the U.S. and Mexico.
Previous report
The alliance is anticipated to add new transborder routes and nonstop competition where currently only connecting service is available. More than 250 new potential nonstop route opportunities have been identified as part of the DOT application, though specific routes targeted for service will be announced at a later date, following the application's approval. We and VivaAerobus expect to offer flights under the alliance after governmental approval of the applications.
Previous report
Sunseeker Resort sales and marketing expense increased $0.2 million or 12.0 percent compared to first quarter 2024. The Sunseeker segment saw an increase in credit card fees in proportion to the 28.5% increase in revenues, which was offset by cost savings related to a more targeted approach in marketing efforts.
Previous report
Other operating expense. Other operating expense decreased $12.3 million or 25.9 percent compared to first quarter 2024. Airline other operating expenses decreased by $12.2 million primarily as a result of gains on opportunistic sales of flight equipment and decreases in crew travel, legal and software support expense.
Previous report
Sunseeker Resort other operating expenses were relatively flat compared to the prior year quarter.
Previous report
Special charges. In first quarter 2025, we recorded a $1.6 million net credit to special charges, which includes $1.4 million in accelerated depreciation due to the early retirement of airframes as part of a revised fleet plan extending through 2026. This was more than offset by $2.9 million in net insurance recoveries during the quarter related to losses from Sunseeker weather events that occurred between 2022 and 2024.
Previous report
Operating Activities. Operating cash inflows are primarily derived from providing air transportation and related ancillary products and services to customers. During the three months ended March 31, 2025, our operating activities provided $191.4 million of cash compared to $167.8 million during the same period 2024. This change is primarily attributable to a $33.0 million increase in net income compared to the 2024 period.
Previous report
Investing Activities. Cash used for investing activities was $121.9 million during the three months ended March 31, 2025 compared to $93.6 million during the same period in 2024. The change is attributable to purchases of investment securities net of maturities, of $73.3 million for the three months ended March 31, 2025, compared to proceeds from maturities of investment securities, net of purchases, of $70.5 million, for the three months ended March 31, 2024. This was offset by a $92.4 million decrease in cash used to purchase property and equipment including aircraft PDPs and an increase in other investing activities primarily driven by proceeds from the sale of aircraft and engine assets during first quarter 2025.
Previous report
Financing Activities. Cash used in financing activities for the three months ended March 31, 2025 was $69.0 million, compared to $23.5 million during the same period in 2024. The change was primarily driven by a $249.1 million increase in principal repayments on long term debt and finance lease obligations, which was offset by a $205.7 million increase in proceeds from issuance of debt.
Reworded paragraphs (40)
Previous wording
The following discussion and analysis presents factors that had a material effect on our results of operations during the three months ended March 31, 2025 and 2024. Also discussed is our financial position as of March 31, 2025 and December 31, 2024. You should read this discussion in conjunction with our unaudited consolidated financial statements, including the notes thereto, appearing elsewhere in this Form 10-Q and our consolidated financial statements appearing in our annual report on Form 10-K for the year ended December 31, 2024. This discussion and analysis contains forward-looking statements. Please refer to the section below entitled “Cautionary Note Regarding Forward-Looking Statements” for a discussion of the uncertainties, risks and assumptions associated with these statements.
Current wording
The following discussion and analysis presents factors that had a material effect on our results of operations during the three and six months ended June 30, 2025 and 2024. Also discussed is our financial position as of June 30, 2025 and December 31, 2024. You should read this discussion in conjunction with our unaudited consolidated financial statements, including the notes thereto, appearing elsewhere in this Form 10-Q and our consolidated financial statements appearing in our annual report on Form 10-K for the year ended December 31, 2024. This discussion and analysis contains forward-looking statements. Please refer to the section below entitled “Cautionary Note Regarding Forward-Looking Statements” for a discussion of the uncertainties, risks and assumptions associated with these statements.
Previous wording
•Total operating revenue of $699.1 million, up 6.5 percent over the prior year, on capacity growth of 14.2 percent year-over-year and an 8.4 percent increase in passengers.
Current wording
•Total consolidated operating revenue of $689.4 million, up 3.5 percent over the prior year, on capacity growth of 15.7 percent year-over-year
Previous wording
•Operating income of$65.0 million, yielding an operating margin of 9.3 percent
Current wording
◦Airline-only operating income of $43.2 million, yielding an airline only operating margin of 6.5 percent
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•Airline-only income before income tax of$49.6 million, yielding an airline-only pre-tax margin of 7.4 percent
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◦Airline-only income before income tax of $29.7 million, yielding an airline only pre-tax margin of 4.4 percent
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•$36.1 million in total cobrand credit card remuneration received from Bank of America
Current wording
•$33.3 million in total cobrand credit card remuneration received from Bank of America
Previous wording
•Ended the quarter with 19 million total active Allways Rewards members
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•Ended the quarter with 20 million total active Allways Rewards members
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As of March 31, 2025, we are party to forward purchase agreements for 42 aircraft with eight of these deliveries expected in 2025 and the remainder between 2026 and 2028. The timing of these deliveries is based on management's best estimates.
Current wording
As of June 30, 2025, we are party to forward purchase agreements for 37 aircraft with three of these deliveries expected in the second half of 2025 and the remainder between 2026 and 2028. The timing of these deliveries is based on management's best estimates.
Previous wording
Due to the heavy maintenance needs on certain aging Airbus airframes and capacity constraints at the maintenance, repair, and overhaul contractors, we reevaluated our fleet plan and identified 21 aging airframes for early retirement to coincide with the delivery schedule for our 737 MAX aircraft provided in an amendment to our Boeing purchase agreement signed in September 2023. Two airframes were retired in 2023, seven in 2024, and two more during the first three months of 2025. The remaining ten airframes identified are to be retired between August 2025 and December 2026. The timing of the retirements was coordinated with the revised delivery schedule for the 737 MAX aircraft to provide us with opportunities for fleet renewal and replacement. The accelerated depreciation on these airframes resulting from a change in the estimated useful life is being recorded as a special charge, of which $1.4 million was recorded during first quarter 2025. We plan to retain the engines associated with these airframes in our spare engine pool and use the substantial remaining life on these engines to offset future overhaul costs.
Current wording
Due to the heavy maintenance needs on certain aging Airbus airframes and capacity constraints at the maintenance, repair, and overhaul contractors, we identified aging airframes for early retirement to coincide with the delivery schedule for our 737 MAX aircraft provided in an amendment to our Boeing purchase agreement signed in September 2023. As of June 30, 2025, 13 airframes had been retired, with 11 additional retirements scheduled between August 2025 and December 2026. The accelerated depreciation resulting from the revised estimated useful life of these aircraft is being recorded as a special charge, including $2.5 million recognized in the second quarter of 2025. The engines from these aircraft will be retained for future overhaul cost mitigation.
Previous wording
As of March 31, 2025, we were selling 577 routes versus 556 as of the same date in 2024. Growth of our network in the past two years has been impacted by challenges created by delayed aircraft deliveries, the uncertainty of our pilot staffing levels and other factors. Network growth will continue to be affected by timing of aircraft deliveries, aircraft in heavy maintenance, airport construction and disruption, and other impacts arising from recent macroeconomic factors creating softer air travel demand. We have identified over 1,400 incremental domestic nonstop routes as opportunities for future network growth, of which over 78 percent currently have no non-stop service. Our total active number of origination cities and leisure destinations were 85 and 34, respectively, as of March 31, 2025.
Current wording
As of June 30, 2025, we were selling 579 routes versus 550 as of the same date in 2024. Network growth in the future will continue to be affected by timing of aircraft deliveries, aircraft in heavy maintenance, airport construction and disruption, trends in domestic, leisure air travel demand and other factors. We have identified over 1,400 incremental domestic nonstop routes as opportunities for future network growth, of which over 75 percent currently have no non-stop service. Our total active number of origination cities and leisure destinations were 86 and 36, respectively, as of June 30, 2025.
Previous wording
Since 2021, fuel costs have risen significantly, further exacerbated by ongoing geopolitical tensions, including the war in Ukraine and recent developments in Iran. Although the average fuel cost per gallon decreased 13.9 percent in first quarter 2025 compared to the same period in 2024, fuel cost per gallon for the quarter remained 19.7 percent higher than in full year 2019. Higher fuel costs may continue to impact our total costs and operating results.
Current wording
Elevated fuel costs may continue to impact our overall cost structure and operating results.
Previous wording
We are in the midst of an effort to thoughtfully increase aircraft utilization back to 2019 levels by adding service to our schedule in our most profitable peak periods. By way of example, our aircraft utilization rate was 8.9 hours per aircraft in March 2025 compared to 9.7 hours per aircraft in March 2019 and 7.4 hours per aircraft in March 2024. We will continue to evaluate the benefits of utilization increases in the current economic environment. These efforts are subject to various risks, some of which may not be under our control.
Current wording
We are continuing to focus on our "peak the peaks" initiative to increase our profitability by increasing our peak period aircraft utilization to 2019 (pre-pandemic) levels. By way of example, our aircraft utilization rate was 8.7 hours per aircraft in June 2025 compared to 9.7 hours per aircraft in June 2019 and 7.8 hours per aircraft in June 2024. We will continue to evaluate the benefits of utilization increases in the current economic environment. These efforts are subject to various risks, some of which may not be under our control.
Previous wording
For the three months ended March 31, 2025, we recorded estimated pilot retention bonus accruals of $22.7 million bringing the total accrual to $168.8 million at March 31, 2025, including the related payroll taxes. The bonus will be paid to all pilots remaining employed with us after ratification of a new collective bargaining agreement.
Current wording
For the three months ended June 30, 2025, we recorded estimated pilot retention bonus accruals of $23.8 million bringing the total accrual to $192.6 million at June 30, 2025, including the related payroll taxes. The bonus will be paid to all pilots remaining employed with us after ratification of a new collective bargaining agreement.
Previous wording
In December 2021, we announced plans for a fully-integrated commercial alliance agreement with VivaAerobus, designed to expand options for nonstop leisure air travel between our markets in the United States and Mexico. We and VivaAerobus continue to await U.S. government approval of our joint application to the DOT requesting approval of, and antitrust immunity for, the alliance. The DOT process progressed substantially under the prior presidential administration, but review was suspended in 2023. In April 2025, we filed a motion with the DOT to resume the procedural schedule on the application for antitrust immunity.
Current wording
In December 2021, we announced plans for a fully-integrated commercial alliance agreement with VivaAerobus, designed to expand options for nonstop leisure air travel between our markets in the United States and Mexico. We and VivaAerobus continue to await U.S. government approval of our joint application to the Department of Transportation ("DOT" or "US DOT") requesting approval of, and antitrust immunity for, the alliance. The DOT process progressed substantially under the prior presidential administration, but review was suspended in 2023. In April 2025, we filed a motion with the DOT to resume the procedural schedule on the application for antitrust immunity. In July 2025 the US DOT announced a series of measures to force the Mexican Government to correct perceived violations of the air transport agreement between the two countries. We anticipate our application to remain suspended while the US DOT undertakes these actions.
Previous wording
Passenger revenue. Passenger revenue increased $36.8 million or 6.3 percent compared to first quarter 2024 driven by an 8.6 percent increase in scheduled service passengers on a 14.4 percent increase in scheduled service capacity. The increase in scheduled service passengers was offset by a 2.1 percent decrease in scheduled service total fare which resulted from a 9.1 percent decline in average base fare offset by a 5.6 percent increase in average ancillary fare. The higher ancillary revenue was driven in part by sales of Allegiant Extra. Since March 31, 2024, we have configured an additional 53 aircraft with the extra legroom seating for our Allegiant Extra offering, bringing the total number to 68 aircraft as of March 31, 2025.
Current wording
Passenger revenue. Passenger revenue increased $23.4 million or 3.9 percent compared to second quarter 2024 driven by an 11.0 percent increase in scheduled service passengers on a 15.8 increase in scheduled service departures. The increase in scheduled service passengers was offset by a 7.1 percent decrease in scheduled service total fare which largely resulted from a 16.9 percent decline in average base fare offset by a 3.4 percent increase in average ancillary fare. The higher ancillary revenue was driven in part by sales of our Allegiant Extra product. Since June 30, 2024, we have configured an additional 50 aircraft with the extra legroom seating for our Allegiant Extra offering, bringing the total number to 76 aircraft as of June 30, 2025. The restoration of functionality around our third bundled product offering, which began in late 2024, also contributed to the increase in average ancillary fare.
Previous wording
Third party products revenue. Third party products revenue increased $1.8 million or 5.4 percent compared to first quarter 2024. This growth was primarily driven by a $1.1 million increase in car rental revenue and a $1.2 million increase from our new travel insurance product implemented during first quarter 2024. These increases were partially offset by smaller decreases in hotel room revenue and the marketing component of co-brand revenue.
Current wording
Third party products revenue. Third party products revenue decreased $3.5 million or 9.3 percent compared to second quarter 2024. This decrease was primarily driven by a $4.8 million decrease in the marketing component of co-brand revenue as certain bonus compensation was phased out in late 2024. This decrease was partially offset by a $1.1 million increase in revenue from our travel insurance product, which was implemented during first quarter 2024.
Previous wording
Resort and other revenue. Resort and other revenue increased $6.7 million or 27.5 percent compared to first quarter 2024. Resort occupancy was 70.3 percent compared to 39.2 percent in first quarter 2024, which represents a significant improvement over the Resort's first full quarter of operations in the prior year quarter. Revenue driven by increased occupancy was partially offset by a decrease in average daily rate to $284 from $327 during first quarter 2024 and an $0.8 million decrease in food & beverage revenues.
Current wording
Resort and other revenue. Resort revenues increased $3.8 million or 22.7 percent compared to second quarter 2024. Resort occupancy was 51.0 percent compared to 33.0 percent in second quarter 2024, which represented a significant improvement over the prior year quarter. Revenue driven by increased occupancy was partially offset by a decrease in average daily rate to $225 from $256 during second quarter 2024. A $1.0 million year-over-year increase in food and beverage revenue from banquets also contributed to the increase in Resort revenue.
Previous wording
The following table presents airline only operating unit costs on a per available seat mile (ASM) basis, defined as Operating CASM, for the indicated periods. Excluding fuel on a per ASM basis provides management and investors the ability to measure and monitor our cost performance absent fuel price volatility. Both the cost and availability of fuel are subject to many economic and political factors beyond our control. Excluding special charges allows management and investors to better compare our airline unit costs with those of other airlines.
Current wording
The following table presents airline only operating unit costs on a per available seat mile (ASM) basis, defined as Operating CASM, for the indicated periods. Excluding fuel on a per ASM basis provides management and investors the ability to measure and monitor our cost performance absent fuel price volatility. Both the cost and availability of fuel are subject to many economic and political factors beyond our control. Excluding fuel costs and special charges allows management and investors to better compare our airline unit costs with those of other airlines.
Previous wording
Airline operating CASM, excluding fuel and airline special charges. Airline operating CASM, excluding fuel and airline special charges, decreased 9.0 percent to 8.07 ¢ from 8.87 ¢ in first quarter 2024. The primary driver of the CASM-ex decrease was a 14.2 percent increase in ASMs, resulting from our targeted efforts to increase utilization in our more profitable peak periods. Virtually every expense line item was lower on a per ASM basis due in part to the increase in capacity.
Current wording
Airline operating CASM, excluding fuel and airline special charges. Airline operating CASM, excluding fuel and airline special charges, decreased 6.7 percent to 7.68 ¢ from 8.23 ¢ in second quarter 2024. The primary driver of the CASM-ex decrease was a 15.7 percent increase in ASMs, as we grew into our existing infrastructure. In particular, we achieved the increased capacity with only a small increase in the average number of aircraft in service and without any increase in the number of full-time equivalent employees. A majority of expense line items were lower on a per ASM basis due in part to the increase in capacity.
Previous wording
Salaries and benefits expense at Sunseeker Resort decreased $2.8 million or 19.9 percent compared to first quarter 2024 due to a 34.4 percent decrease in average full-time equivalent employees as we adjusted staffing to better correspond with the needs of the Resort.
Current wording
Salaries and benefits expense at Sunseeker Resort decreased $1.9 million or 15.2 percent compared to second quarter 2024 due to a 28.9 percent decrease in average full-time equivalent employees as we adjusted staffing to better correspond with the needs of the Resort and outsourced certain functions.
Previous wording
Aircraft fuel expense. Aircraft fuel expense decreased $3.8 million or 2.2 percent compared to first quarter 2024. This was primarily due to a 13.9 percent decrease in average fuel cost per gallon and a 0.9 percent increase in fuel efficiency, offset by a 13.2 percent increase in fuel gallons consumed.
Current wording
Aircraft fuel expense. Aircraft fuel expense decreased $4.3 million or 2.5 percent compared to second quarter 2024. This was primarily driven by a 14.5 percent decrease in average fuel cost per gallon, offset by a 13.8 percent increase in fuel gallons consumed. The increased fuel consumption was driven by the 15.7 percent increase in ASMs offset by a 1.6 percent improvement in fuel efficiency.
Previous wording
Station operations expense. Station operations expense increased $7.0 million or 10.6 percent compared to first quarter 2024. The increase was primarily driven by a 13.7 percent year-over-year increase in departures that resulted in a corresponding rise in airport landing fees, ground handling, deicing, and other stations-related expenses. The increase in costs was partially offset by a reduction in passenger compensation resulting from smoother winter operations (that is, fewer irregular operations events this quarter).
Current wording
Station operations expense. Station operations expense increased $5.5 million or 7.8 percent compared to second quarter 2024. The increase was primarily driven by a 15.7 percent year-over-year increase in total system departures that resulted in a corresponding rise in airport and landing fees, ground handling, and other stations-related expenses. The increase in costs was partially offset by a reduction in passenger compensation resulting from fewer irregular operations events compared to the prior year quarter.
Previous wording
Depreciation and amortization expense. Airline depreciation and amortization expense increased $1.8 million or 3.2 percent compared to first quarter 2024. This increase was primarily driven by a $1.0 million increase in capitalized software amortization resulting from the airline's implementation of new enterprise resource planning ("ERP") systems throughout 2024, a $1.3 million increase in heavy maintenance amortization, and a slight increase in engine depreciation, which were partially offset by decreases in aircraft and ground equipment depreciation.
Current wording
Depreciation and amortization expense. Airline depreciation and amortization expense increased $5.6 million or 9.5 percent compared to second quarter 2024. This was primarily driven by an increase in flight equipment depreciation, including engines, and IT asset amortization, due to new aircraft and equipment placed into service, an increase in heavy maintenance amortization, and increased software amortization resulting from the airline's implementation of new enterprise resource planning ("ERP") systems throughout 2024.
Previous wording
Sales and marketing expense. Airline sales and marketing expense decreased $5.5 million or 19.1 percent compared to first quarter 2024, primarily due to a non-recurring item related to our credit card agreement that offset expenses in first quarter 2025 and decreases in sponsorship related expenses.
Current wording
Sales and marketing expense. Airline sales and marketing expense decreased $0.8 million or 3.1 percent compared to second quarter 2024, primarily due to a decrease in both sponsorship related expenses and certain online advertising. These decreases were mostly offset by an increase in credit card processing fees, in line with a 3.9 percent increase in passenger revenue.
Previous wording
Interest expense, net of interest income and capitalized interest, increased $5.6 million or 33.6 percent, compared to first quarter 2024. Interest expense for the quarter ended March 31, 2025, includes a $3.4 million loss on debt extinguishment related to the early repayment of the Sunseeker construction loan which was partially offset by the effect of lower debt balances and a slight decrease in interest rates. Capitalized interest decreased by $4.7 million as eight 737 MAX deliveries have been placed in service as of March 31, 2025. Interest income decreased by $0.3 million as a result of lower average investment balances, which was offset in part by higher average yields on investments, compared to first quarter 2024.
Current wording
Interest expense, net of interest income and capitalized interest, increased $4.0 million or 24.0 percent, compared to second quarter 2024. The increase was driven by a $7.0 million decrease in capitalized interest as nine aircraft from our 737 MAX order have been placed in service since June 30, 2024. Additionally, interest income decreased by $0.8 million compared to second quarter 2024 as the result of lower yields on invested balances. These changes were offset by a decrease in interest expense of $3.8 million or 9.6 percent compared to the prior year quarter primarily due to an 11.6 percent decrease in the carrying amount of debt outstanding.
Previous wording
We recorded a $9.8 million income tax expense at an effective tax rate of 23.5 percent and a $0.4 million income tax benefit at a 31.3 percent effective tax rate for the three months ended March 31, 2025 and 2024, respectively. The effective tax rate for the three months ended March 31, 2025 differed from the statutory federal income tax rate of 21.0 percent primarily due to state income taxes and permanent tax items.
Current wording
We recorded a $23.4 million income tax benefit at an effective tax rate of 26.4 percent and a $4.3 million income tax expense at a 24.0 percent effective tax rate for the three months ended June 30, 2025 and 2024, respectively. The effective tax rate for the three months ended June 30, 2025 differed from the statutory federal income tax rate of 21.0 percent primarily due to state income taxes, the impact of permanent tax differences and discrete items. The discrete items primarily relate to the Sunseeker write down.
Previous wording
Fixed fee contract revenue. Fixed fee contract revenue decreased $2.6 million or 13.8 percent compared to first quarter 2024 on a 13.4 percent decrease in fixed fee departures. Volume for sports flying decreased as the result of having less aircraft time available to dedicate to fixed fee flying during March Madness compared to the prior year quarter.
Current wording
Fixed fee contract revenue. Fixed fee contract revenue decreased $3.3 million or 9.0 percent compared to the six months ended June 30, 2024, on a 6.6 percent decrease in fixed fee departures. This was the result of an overall decrease in sports flying attributable to less aircraft time available to dedicate to fixed fee flying during March Madness compared to the prior year. Additionally, flying for the Department of Defense returned to more normal levels in the first half of 2025, as compared to particularly strong performance in the first half of 2024.
Previous wording
Salaries and benefits expense. Airline salaries and benefits expense increased $20.9 million or 10.5 percent compared to first quarter 2024. The increase was primarily attributable to the new collective bargaining agreement with our flight attendant group that took effect on April 1, 2024 and to a 15.5 percent increase in total block hours flown compared to first quarter 2024.
Current wording
Airline salaries and benefits expense increased $26.9 million or 6.8 percent year over year. The increase was primarily attributable to the new collective bargaining agreement with our flight attendant group that took effect in April 2024, and to increased flight crew wages due to a 16.3 percent increase in total block hours flown.
Previous wording
Sunseeker Resort depreciation and amortization decreased $2.4 million or 39.7 percent compared to first quarter 2024, primarily as the result of an impairment loss recorded in fourth quarter 2024 which reduced the carrying amount of Resort assets.
Current wording
Sunseeker Resort depreciation and amortization decreased by $4.8 million or 40.3 percent compared to the six months ended June 30, 2024, primarily as the result of an impairment charge recorded in fourth quarter 2024 which reduced the carrying amount of Resort assets.
Previous wording
Maintenance and repairs expense. Maintenance and repairs expense increased $4.6 million or 15.1 percent compared to first quarter 2024, which remained relatively flat on a per ASM basis.
Current wording
Maintenance and repairs expense. Maintenance and repairs expense increased $10.2 million or 16.8 percent compared to the six months ended June 30, 2024. The increase was driven primarily by a 15.0 percent year over year increase in capacity. On a per ASM basis, maintenance expense remained relatively flat.
Previous wording
The following tables set forth ourairline operating statistics for the periods indicated:
Current wording
The following tables set forth ourairline operating statistics for the three-month periods indicated:
Previous wording
Cash, cash equivalents and investment securities (short-term and long-term) increased to $906.3 million as of March 31, 2025, from $832.9 million at December 31, 2024. Investment securities represent highly liquid marketable securities which are available-for-sale.
Current wording
Cash, cash equivalents and investment securities (short-term and long-term) increased to $852.8 million as of June 30, 2025, from $832.9 million at December 31, 2024. Investment securities represent highly liquid marketable securities which are available-for-sale.
Previous wording
As of March 31, 2025, we had $275.0 million of undrawn capacity under revolving credit facilities and $69.1 million remaining available under aircraft financing facilities. In April 2025 we entered into an additional aircraft financing commitment totaling $221.3 million, which will be funded when the associated aircraft deliver.
Current wording
As of June 30, 2025, we had $275.0 million of undrawn capacity under revolving credit facilities and $335.0 million in undrawn borrowing capacity under aircraft financing facilities.
Previous wording
Our share repurchase authority at March 31, 2025 is $64.7 million. We completed open market share repurchases totaling $11.0 million during first quarter 2025 and may continue to repurchase shares on an opportunistic basis. In July 2024, we suspended our quarterly cash dividend in anticipation of upcoming capital needs related to our fleet investments.
Current wording
Our share repurchase authority at June 30, 2025 is $64.7 million. During the first quarter of 2025, we made $11.0 million of open market share repurchases. We did not repurchase any shares on the open market during the second quarter of 2025. We have indefinitely suspended our quarterly cash dividend in anticipation of upcoming capital needs related to our fleet investments.
Previous wording
We believe we have more than adequate liquidity resources through our cash, cash equivalent and short term investment balances, financing commitments, our undrawn capacity under existing credit facilities, operating cash flows and anticipated access to liquidity, to meet our current contractual obligations and remain in compliance with the debt covenants in our existing financing agreements for the next 12 months. We will continue to consider raising funds through debt financing as needed to fund capital expenditures.
Current wording
We believe we have more than adequate liquidity resources through our cash, cash equivalent and short-term investment balances, existing aircraft financing facilities, our undrawn capacity under existing credit facilities, operating cash flows and anticipated access to liquidity, to meet our current contractual obligations and remain in compliance with the debt covenants in our existing financing agreements for the next 12 months. We will continue to consider raising funds through debt financing as needed to fund capital expenditures.
Previous wording
Our debt and finance lease obligations balance, without reduction for related issuance costs, decreased from $2.08 billion as of December 31, 2024 to $2.03 billion as of March 31, 2025. Net debt (total debt less unrestricted cash, cash equivalents, and investments) as of March 31, 2025 was $1.11 billion, a decrease of $126.1 million from December 31, 2024.
Current wording
Our debt and finance lease obligations balance, without reduction for related issuance costs, decreased from $2.08 billion as of December 31, 2024 to $1.97 billion as of June 30, 2025. Net debt (total debt less unrestricted cash, cash equivalents, and investments) as of June 30, 2025 was $1.11 billion, a decrease of $124.5 million from December 31, 2024.
Previous wording
During the three months ended March 31, 2025, we borrowed $224.5 million, of which $174.5 million was secured by aircraft and aircraft related assets. In the same period, we also repaid $280.6 million in principal, including prepayment of the remaining $100.0 million principal balance related to our Sunseeker construction loan. As of March 31, 2025, we had $275.0 million undrawn and available under our revolving credit facilities.
Current wording
During the six months ended June 30, 2025, we borrowed $323.8 million of which $273.8 million was secured by aircraft and aircraft related assets. In the same period, we also repaid $432.6 million in principal, including a $100.0 million prepayment on the remaining principal balance related to our Sunseeker construction loan and $59.1 million in prepayments related to one of our PDP financing facilities. As of June 30, 2025, we had $275.0 million undrawn and available under our revolving credit facilities and $335.0 million in undrawn borrowing capacity under aircraft financing facilities.
Previous wording
As of March 31, 2025, approximately 67.6 percent of our debt and finance lease obligations are fixed-rate.
Current wording
As of June 30, 2025, approximately 68.1 percent of our debt and finance lease obligations are fixed-rate.
Previous wording
We have made forward-looking statements in this quarterly report on Form 10-Q, and in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” that are based on our management’s beliefs and assumptions, and on information currently available to our management. Forward-looking statements include our statements regarding the number of contracted aircraft to be placed in service in the future, the timing of aircraft deliveries and retirements, our ability to increase aircraft utilization and also to increase per passenger revenue with our new revenue management system, the implementation of a joint alliance with VivaAerobus, the operations and possible sale of our Sunseeker Resort or an interest therein, the impact of U.S. trade policies on our business, as well as other information concerning future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "anticipate," "intend," "plan," "estimate," “project,” “hope” or similar expressions.
Current wording
We have made forward-looking statements in this quarterly report on Form 10-Q, and in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” that are based on our management’s beliefs and assumptions, and on information currently available to our management. Forward-looking statements include our statements regarding the number of contracted aircraft to be placed in service in the future, the timing of aircraft deliveries and retirements, our ability to increase aircraft utilization and also to increase per passenger revenue with our new revenue management system, the implementation of a joint alliance with VivaAerobus, the expected sale of our Sunseeker Resort, the impact of U.S. trade policies on our business, as well as other information concerning future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "anticipate," "intend," "plan," "estimate," “project,” “hope” or similar expressions.
Previous wording
Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements may be found in our periodic reports filed with the Securities and Exchange Commission atwww.sec.gov. These risk factors include, without limitation, the impact of regulatory reviews of, and production limits on, Boeing on our aircraft delivery schedule, an accident involving, or problems with, our aircraft, public perception of our safety, our reliance on our automated systems, our reliance on Boeing to deliver aircraft under contract to us on a timely basis, risk of breach of security of personal data, volatility of fuel costs, labor issues and costs, the ability to obtain regulatory approvals as needed, the effect of economic conditions on leisure travel, debt covenants and balances, the impact of government regulations on the airline industry, the ability to finance aircraft to be acquired, the ability to obtain necessary government approvals to implement the announced alliance with VivaAerobus and to otherwise prepare to offer international service, terrorist attacks, risks inherent to airlines, our competitive environment, our reliance on third parties who provide facilities or services to us, the possible loss of key personnel, economic and other conditions in markets in which we operate, the ability to successfully operate Sunseeker Resort at Charlotte Harbor or to dispose of an interest in it on acceptable terms, increases in maintenance costs and the availability of outside maintenance contractors to perform needed work on our aircraft on a timely basis and at acceptable rates, cyclical and seasonal fluctuations in our operating results and the perceived acceptability of our environmental, social, and governance efforts.
Current wording
Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements may be found in our periodic reports filed with the Securities and Exchange Commission atwww.sec.gov. These risk factors include, without limitation, the impact of regulatory reviews of, and production limits on, Boeing on our aircraft delivery schedule, an accident involving, or problems with, our aircraft, public perception of our safety, our reliance on our automated systems, our reliance on Boeing to deliver aircraft under contract to us on a timely basis, risk of breach of security of personal data, volatility of fuel costs, labor issues and costs, the ability to obtain regulatory approvals as needed, the effect of economic conditions on leisure travel, debt covenants and balances, the impact of government regulations on the airline industry, the ability to finance aircraft to be acquired, the ability to obtain necessary government approvals to implement the announced alliance with VivaAerobus and to otherwise prepare to offer international service, terrorist attacks, risks inherent to airlines, our competitive environment, our reliance on third parties who provide facilities or services to us, the possible loss of key personnel, economic and other conditions in markets in which we operate, the ability to close the sale of Sunseeker Resort at Charlotte Harbor on the agreed terms, increases in maintenance costs and the availability of outside maintenance contractors to perform needed work on our aircraft on a timely basis and at acceptable rates, cyclical and seasonal fluctuations in our operating results and the perceived acceptability of our environmental, social, and governance efforts.
Previous wording
There have been no material changes to our critical accounting estimates during the three months ended March 31, 2025. For information regarding our critical accounting policies and estimates, see disclosures in the Consolidated Financial Statements and accompanying notes contained in our 2024 Form 10-K, and in Note 1 of Notes to Consolidated Financial Statements (unaudited) in this Form 10-Q.
Current wording
There were no other material changes to our critical accounting estimates during the six months ended June 30, 2025. For information regarding our critical accounting policies and estimates, see disclosures in the Consolidated Financial Statements and accompanying notes contained in our 2024 Form 10-K, and in Note 1 of Notes to Consolidated Financial Statements (unaudited) in this Form 10-Q.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
•Loss before income tax of $88.6 million
Current report — wording carried from elsewhere
Passenger revenue. Passenger revenue increased $60.2 million or 5.1 percent compared to the six months ended June 30, 2024, driven by a 9.9 percent increase in scheduled service passengers on a 15.0 percent increase in scheduled service departures. The increase in scheduled service passengers was offset by a 4.7 percent decrease in scheduled service total fare which largely resulted from a 13.0 percent decline in average base fare offset by a 4.4 percent increase in average ancillary fare. This higher ancillary revenue was driven in part by sales of our Allegiant Extra product. Since June 30, 2024, we have configured an additional 50 aircraft with the extra legroom seating for our Allegiant Extra offering, bringing the total number to 76 aircraft as of June 30, 2025. We expect our Allegiant Extra product to increase ancillary air revenue as it is deployed in more of our aircraft. The restoration of functionality around our third bundled product offering, which began in late 2024, also contributed to the increase in average ancillary fare.
Current report — wording carried from elsewhere
The following table presents airline only operating unit costs on a per available seat mile (ASM) basis, defined as Operating CASM, for the indicated periods. Excluding fuel on a per ASM basis provides management and investors the ability to measure and monitor our cost performance absent fuel price volatility. Both the cost and availability of fuel are subject to many economic and political factors beyond our control. Excluding fuel costs and special charges allows management and investors to better compare our airline unit costs with those of other airlines.
Current report — wording carried from elsewhere
Salaries and benefits expense at Sunseeker Resort decreased $4.7 million or 17.7 percent compared to the six months ended June 30, 2024, due to a 28.9 percent decrease in average full-time equivalent employees as we adjusted staffing to better correspond with the needs of the Resort and outsourced certain functions.
Current report — wording carried from elsewhere
Station operations expense. Station operations expense increased $12.5 million or 9.2 percent compared to the six months ended June 30, 2024. The increase was primarily driven by a 14.8 percent year-over-year increase in total system departures that resulted in a corresponding rise in airport and landing fees, ground handling, and other stations-related expenses. The increase in costs was partially offset by a reduction in passenger compensation resulting from fewer irregular operations events compared to the same period in 2024.
Current report — wording carried from elsewhere
Depreciation and amortization expense. Airline depreciation and amortization expense increased $7.5 million or 6.4 percent compared to the six months ended June 30, 2024. This was primarily driven by new flight equipment placed in service, an increase in heavy maintenance amortization, and increased software amortization resulting from the airline's implementation of new enterprise resource planning systems throughout 2024.
Current report — wording carried from elsewhere
The following tables set forth ourairline operating statistics for the six-month periods indicated:
Current report — wording carried from elsewhere
(1)Except load factor and percent of sales through website during period, which are presented as a percentage point change.
Current report — wording carried from elsewhere
(2)Defined as scheduled service revenue divided by revenue passenger miles.
Current report — wording carried from elsewhere
(3)Various components of this measure do not have a direct correlation to ASMs. This measure is provided on a per ASM basis so as to facilitate comparison with airlines reporting revenues on a per ASM basis.
Current report — wording carried from elsewhere
(4)Reflects division of passenger revenue between scheduled service (base fare) and air-related charges in our booking path.