Allegiant Travel CO

Previous 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.

Current wording

The following discussion and analysis presents factors that had a material effect on our results of operations during the three and nine months ended September 30, 2025 and 2024. Also discussed is our financial position as of September 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 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

Current wording

•Total consolidated operating revenue of $561.9 million, flat over the prior year

Previous wording

•$33.3 million in total cobrand credit card remuneration received from Bank of America

Current wording

•$34.0 million in total cobrand credit card remuneration received

Previous wording

•Ended the quarter with 20 million total active Allways Rewards members

Current wording

•Ended the quarter with 21 million total active Allways Rewards members

Previous wording

•During the second quarter, expanded the network by announcing five new nonstop routes

Current wording

•During the third quarter, expanded the network by announcing 12 new nonstop routes and three new cities, Atlantic City, Burbank, and Huntsville

Previous wording

(1)Includes 23 aircraft under finance lease and 13 aircraft under operating lease as of June 30, 2025, and December 31, 2024.

Current wording

(1)Includes 23 aircraft under finance lease and 12 aircraft under operating lease as of September 30, 2025. Includes 23 aircraft under finance lease and 13 aircraft under operating lease as of December 31, 2024. Excludes one leased aircraft as of September 30, 2025, which has been removed from service as of that date, but has yet to be returned to the lessor.

Previous wording

(2)Includes four aircraft under operating lease as of June 30, 2025 and December 31, 2024.

Current wording

(2)Includes one aircraft under operating lease as of September 30, 2025 and four aircraft under operating lease as of December 31, 2024. Excludes three leased aircraft as of September 30, 2025, which have been removed from service as of that date, but have yet to be returned to the lessor.

Previous wording

(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 wording

(3)These numbers exclude six Boeing 737-8200 aircraft of which we have taken delivery but which have not been placed in service as of September 30, 2025.

Previous 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.

Current wording

As of September 30, 2025, we are party to forward purchase agreements for 34 aircraft with deliveries expected 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 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.

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 September 30, 2025, 15 airframes had been retired, with nine additional retirements scheduled between February 2026 and December 2026. The accelerated depreciation resulting from the revised estimated useful life of these aircraft is being recorded as a special charge, including $2.9 million recognized in the third quarter of 2025. The engines from these aircraft will be retained for future overhaul cost mitigation and may be sold on an opportunistic basis if we determine the engine has no better economic use in the fleet.

Previous 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.

Current wording

As of September 30, 2025, we were selling 551 routes versus 542 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 88 and 35, respectively, as of September 30, 2025.

Previous wording

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 wording

Consumer confidence has vacillated during the current year, which along with other macroeconomic and airline industry events, initially contributed to a general decline in consumer spending and, in particular, softened demand for domestic, leisure air travel. Although demand fluctuates, macroeconomic uncertainty persists, driven by factors such as trade policies, tariffs, and the U.S. Government shutdown. These factors have impacted our fares, load factors, and profitability. Our results of operations may continue to be impacted while these conditions persist. We continue to monitor how these factors could impact our business and take steps to mitigate their effect on our business.

Previous wording

The cost of fuel remains volatile, influenced by numerous economic and geopolitical factors beyond our control or prediction. Significant increases in fuel costs could materially impact our operating results and profitability. We have not used financial derivative products to hedge against fuel price volatility, nor do we have any plans to do so in the future.

Current wording

The cost of fuel, including refining costs and applicable crack spreads, remains volatile, influenced by numerous economic and geopolitical factors beyond our control or prediction. Significant increases in fuel costs could materially impact our operating results and profitability. We have not used financial derivative products to hedge against fuel price volatility, nor do we have any plans to do so in the future.

Previous 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.

Current wording

For the three months ended September 30, 2025, we recorded estimated pilot retention bonus accruals of $22.4 million, bringing the total accrual, which is shown in the balance sheet within the accrued liabilities line item, to $215.0 million at September 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

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.

Current wording

Airline operating CASM, excluding fuel and special charges. Airline operating CASM, excluding fuel and special charges, decreased 4.7 percent to 8.47 ¢ from 8.89 ¢ in third quarter 2025. The primary driver of the CASM-ex decrease was a 9.7 percent increase in ASMs, as we grew into our existing infrastructure. In particular, we achieved the increased capacity with no increase to the average number of aircraft in service and with only a small 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. 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 wording

Salaries and benefits expense. Airline salaries and benefits expense increased $6.6 million or 3.6 percent compared to third quarter 2024. The increase was primarily attributable to increased flight crew wages due to a 10.2 percent increase in total block hours flown compared to third quarter 2024. Additionally, flight crew wages were higher year over year due to an increase in average tenure.

Previous 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.

Current wording

Aircraft fuel expense. Aircraft fuel expense increased $3.0 million or 2.0 percent compared to third quarter 2024. The increase was primarily driven by a 6.9 percent increase in fuel gallons consumed on a 9.7 percent increase in available seat miles, which was partially offset by a 4.8 percent decrease in average fuel cost per gallon. Fuel efficiency improved by 2.6 percent compared to the prior year quarter.

Previous 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.

Current wording

Station operations expense. Station operations expense increased 1.1 percent or $0.8 million compared to third quarter 2024. The increase was primarily driven by a 10.4 percent year-over-year increase in total system departures that resulted in a corresponding increase in airport and landing fees, ground handling, and certain other stations-related expenses. These increases were largely offset by a reduction in passenger compensation resulting from fewer irregular operations events compared to the prior year quarter, which included disruptions related to the CrowdStrike outage in July 2024.

Previous 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.

Current wording

Sales and marketing expense. Airline sales and marketing expense decreased $1.3 million or 5.5 percent compared to third quarter 2024 primarily due to a decrease in sponsorship related expenses.

Previous wording

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 wording

Aircraft lease rentals. Aircraft lease rental expense increased $5.2 million compared to third quarter 2024. The increase is attributable to estimated lease return costs we began to accrue in second quarter 2025 for certain aircraft on operating leases related to redeliveries in 2025 and future years.

Previous 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.

Current wording

Passenger revenue. Passenger revenue increased $65.4 million or 3.9 percent compared to the nine months ended September 30, 2024, driven by a 9.6 percent increase in scheduled service passengers on a 13.7 percent increase in scheduled service departures. The increase in scheduled service passengers was offset by a 5.5 percent decrease in scheduled service total fare, which largely resulted from a 13.8 percent decline in average base fare due to demand softness in the industry. This decrease was partially offset by a 3.0 percent increase in average fare for air-related charges. Over the last year, revenues for air-related charges have been bolstered by sales of our Allegiant Extra product. Since September 30, 2024, we have configured an additional 44 aircraft with the extra legroom seating for our Allegiant Extra offering, bringing the total number to 83 aircraft as of September 30, 2025. The restoration of functionality around our third bundled product offering, which began in late 2024, has also contributed to ancillary revenue gains over the last year.

Previous 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.

Current wording

Third party products revenue. Third party products revenue decreased $1.7 million or 1.5 percent compared to the nine months ended September 30, 2024 despite the 9.6 percent increase in scheduled service passengers. The decrease is primarily driven by a $6.0 million decrease in the marketing component of co-brand revenue as certain bonus compensation was phased out in late 2024. The decrease was partially offset by a $2.9 million increase in revenue from our travel insurance product, which was implemented during first quarter 2024.

Previous wording

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 wording

Airline operating CASM, excluding fuel and special charges. Airline operating CASM, excluding fuel and special charges decreased by 6.9 percent to 8.05 ¢ for the nine months ended September 30, 2025 compared to 8.65 ¢ for the same period in 2024. The primary driver of the CASM-ex decrease was a 13.3 percent increase in ASMs as we grew into our existing infrastructure. In particular, we achieved the increased capacity with the same average number of aircraft in service and only a small 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

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.

Current wording

Salaries and benefits expense. Airline salaries and benefits expense increased $33.6 million or 5.8 percent year over year. The increase was primarily attributable to an increase in flight crew wages due to a 14.4 percent increase in total block hours flown. Additionally, average flight crew wages increased due to an increase in average tenure, and there were further increases for our flight attendant group due to a pay band increase associated with the collective bargaining agreement that took effect in April 2024.

Previous wording

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 wording

Salaries and benefits expense at Sunseeker Resort decreased $10.2 million or 27.1 percent compared to the nine months ended September 30, 2024. This is due to a decrease in average full-time equivalent employees, as certain functions were outsourced and staffing levels were strategically adjusted to align with operational needs. Furthermore, there was approximately one less month of expense for the nine months ended September 30, 2025 due to the sale of Sunseeker Resort on September 4, 2025.

Previous wording

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 wording

Aircraft fuel expense. Aircraft fuel expense decreased $5.0 million, or 1.0 percent, compared to the nine months ended September 30, 2024. The decrease was primarily driven by an 11.2 percent decrease in average cost per gallon. The decrease in fuel cost was substantially offset by an 11.4 percent increase in gallons consumed on a 13.3 percent increase in total ASMs. Fuel efficiency increased 1.7 percent year over year.

Previous wording

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 wording

Station operations expense. Station operations expense increased $13.2 million or 6.4 percent compared to the nine months ended September 30, 2024. The increase was primarily driven by a 13.3 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, which included disruptions related to the CrowdStrike outage in July 2024.

Previous wording

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 wording

Depreciation and amortization expense. Airline depreciation and amortization expense increased $10.4 million or 6.0 percent compared to the nine months ended September 30, 2024. This increase was primarily attributable to the addition of 10 new aircraft from our 737 MAX order, which were placed into service over the past year. Additionally, there was an increase in software amortization resulting from the airline's implementation of new enterprise resource planning systems throughout 2024.

Previous 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.

Current wording

Sunseeker Resort depreciation and amortization decreased by $12.7 million or 64.0 percent compared to the nine months ended September 30, 2024. The Company ceased depreciating the Resort's assets upon meeting held-for-sale classification criteria in June 2025. In addition, depreciation expense recorded during the first half of 2025 was lower than the same period in 2024 as a 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 $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.

Current wording

Maintenance and repairs expense. Maintenance and repairs expense increased $19.9 million or 21.8 percent compared to the nine months ended September 30, 2024. The increase was driven in part by a higher volume of certain rotable part repairs. The remaining increases in maintenance and repairs expense were consistent with the 13.3 percent increase in capacity.

Previous wording

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 wording

Aircraft lease rentals. Aircraft lease rental expense increased $10.4 million compared to the nine months ended September 30, 2024. The increase is attributable to estimated lease return costs we began to accrue in second quarter 2025 for certain aircraft on operating leases related to redeliveries in 2025 and future years.

Previous wording

Special charges. During the six months ended June 30, 2025, we recorded $116.4 million of special charges.

Current wording

Special charges. During the nine months ended September 30, 2025, we recorded $119.8 million of special charges.

Previous wording

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 wording

The Airline recorded $18.9 million in special charges, of which $12.1 million relates to corporate restructuring charges recorded in second quarter 2025. The restructuring efforts were taken in response to softer air travel demand due to heightened macroeconomic uncertainty and include 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 for the nine months ended September 30, 2025 also included $6.8 million for accelerated depreciation on airframes identified for early retirement.

Previous wording

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.

Current wording

Interest expense, net of interest income and capitalized interest, increased by $17.4 million, or 34.4 percent, compared to the nine months ended September 30, 2024. The increase was driven by a $20.5 million decrease in capitalized interest as 15 aircraft from our 737 MAX order have been delivered since September 30, 2024 and the interest expense on debt to acquire those aircraft is no longer capitalized. In addition, we recognized a total of $4.5 million of losses on debt extinguishment related to the early repayment of various debt instruments during 2025, including $3.4 million related to the repayment of the Sunseeker construction loan, which are included within interest expense. The increase was partially offset by an $8.6 million, or 7.3 percent, decrease in interest expense as a result of a lower average outstanding debt balance year over year.

Previous wording

The following tables set forth ourairline operating statistics for the six-month periods indicated:

Current wording

The following tables set forth ourairline operating statistics for the nine-month periods indicated:

Previous 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.

Current wording

Cash, cash equivalents and investment securities (short-term and long-term) increased to $991.3 million as of September 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 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.

Current wording

As of September 30, 2025, we had $175.0 million of undrawn capacity under revolving credit facilities and $25.1 million in undrawn borrowing capacity under aircraft financing facilities.

Previous 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.

Current wording

Our share repurchase authority at September 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 and third quarters of 2025. We have indefinitely suspended our quarterly cash dividend in anticipation of upcoming capital needs related to our fleet investments.

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 $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.

Current wording

Our debt and finance lease obligations balance, without reduction for related issuance costs, remained stable at $2.08 billion as of December 31, 2024 and September 30, 2025. Net debt (total debt less unrestricted cash, cash equivalents, and investments) totaled $1.07 billion as of September 30, 2025, representing a reduction of $168.5 million compared to December 31, 2024.

Previous 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.

Current wording

During the nine months ended September 30, 2025, we borrowed $638.9 million of which $589.0 million was secured by aircraft and aircraft related assets. In the same period, we also repaid $647.2 million in principal, including prepayments of $360.9 million of the principal amount of facilities secured by aircraft and aircraft-related assets, including PDP financing, a $100.0 million prepayment of the remaining principal balance of our Sunseeker construction loan, and repurchases of $25.3 million of the principal amount of our Senior Secured Notes. In October 2025, we voluntarily redeemed an additional $120.0 million of our Senior Secured Notes pursuant to a call notice we issued in September 2025.