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    What Allegiant Travel (ALGT)'s November Capacity Expansion With Steady Load Factors Means For Shareholders

    Simply Wall St·12/25/2025 17:17:03
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    • In December 2025, Allegiant Travel reported its November operating results, showing Scheduled Service passengers rising to 1,343,190 and revenue passenger miles reaching 1.22 billion, with load factor holding near prior-year levels.
    • What stands out is that Allegiant added more than 800 extra departures year over year while keeping aircraft just as full, suggesting capacity growth was absorbed without sacrificing utilization.
    • Next, we’ll examine how this higher passenger volume and increased departures might influence Allegiant’s existing investment narrative around growth, efficiency, and risk.

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    Allegiant Travel Investment Narrative Recap

    To own Allegiant, you have to believe its low cost, leisure focused model can convert higher traffic into sustainable profits despite recent losses and a still choppy demand backdrop. November’s strong passenger and departure growth, with load factor holding steady, supports the near term margin catalyst, but does not remove key risks around seasonality, weak shoulder periods, and ongoing cost pressures.

    The recent expansion of Allegiant’s revolving credit facility to US$150,000,000 with extended maturity is particularly relevant here, as it underpins liquidity while the company adds routes and absorbs higher capacity. That added financial flexibility matters if demand softens or fleet transition and labor costs run higher than expected, even as management targets a double digit Q4 2025 operating margin.

    Yet behind the higher November traffic, investors should be aware of how Allegiant’s exposure to off peak weakness and labor cost inflation could...

    Read the full narrative on Allegiant Travel (it's free!)

    Allegiant Travel’s narrative projects $3.1 billion revenue and $267.8 million earnings by 2028. This requires 6.0% yearly revenue growth and a $553.9 million earnings increase from -$286.1 million today.

    Uncover how Allegiant Travel's forecasts yield a $69.58 fair value, a 18% downside to its current price.

    Exploring Other Perspectives

    ALGT 1-Year Stock Price Chart
    ALGT 1-Year Stock Price Chart

    One Simply Wall St Community member currently pegs Allegiant’s fair value at US$69.58, underlining how differently individual investors can view the same stock. You should weigh that single datapoint against Allegiant’s uneven profitability and seasonal demand risk, and then explore several alternative viewpoints before forming your own view.

    Explore another fair value estimate on Allegiant Travel - why the stock might be worth 18% less than the current price!

    Build Your Own Allegiant Travel Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.