Segments

6 Months Ended

Jun. 30, 2025

Operating segments are components of a company for which separate financial and operating information is regularly evaluated and reported to the Chief Operating Decision Maker ("CODM") and is used to allocate resources and analyze performance. The Company's CODM is the President and CEO, who assesses segment performance and makes resource allocation decisions using information about each operating segment's operating income and pretax income. The CODM reviews separate financial information and makes resource allocation decisions for the Company's two operating segments: Airline and Sunseeker Resort.

Airline Segment

The Airline segment operates as a single business unit and includes all scheduled service air transportation, ancillary air-related products and services, third party products and services, fixed fee contract air transportation and other airline-related revenue. Scheduled service and fixed fee air transportation services have similar operating margins, economic characteristics and production processes (check-in, baggage handling and flight services) which target the same class of customers and are subject to the same regulatory environment. As a result, the Company believes its airline activities operate under one reportable segment and does not separately track expenses for scheduled service and fixed fee air transportation services.

Sunseeker Resort Segment

The Sunseeker Resort segment operates as a single business unit and includes hotel rooms and suites for occupancy, group meeting facilities, food and beverage options, Aileron Golf Course and other Resort amenities.

Segment profit or loss, revenues, significant segment expenses, and other required financial information for each of the Company's operating segments are set forth below:


	Three Months Ended June 30, 2025
(in thousands)	Airline		Sunseeker		Consolidated





REVENUES FROM EXTERNAL CUSTOMERS	$	668,750	$	20,634	$	689,384
OPERATING EXPENSES:
Salaries and benefits	203,485		10,617		214,102
Aircraft fuel	165,752		—		165,752
Station operations	75,248		—		75,248
Depreciation and amortization	64,961		3,558		68,519
Maintenance and repairs	36,379		—		36,379
Sales and marketing	25,119		1,718		26,837
Aircraft lease rentals	11,023		—		11,023
Other operating expense(1)	29,031		12,058		41,089
Special charges, net of recoveries	14,595		103,329		117,924
Total operating expenses	625,593		131,280		756,873
OPERATING INCOME (LOSS)	43,157		(110,646)		(67,489)
OTHER (INCOME) EXPENSES:
Interest income	(10,359)		—		(10,359)
Interest expense	28,121		7,635		35,756
Capitalized interest	(4,562)		—		(4,562)
Other non-operating expense	240		—		240
INCOME (LOSS) BEFORE INCOME TAXES	$	29,717	$	(118,281)	$	(88,564)

Capital expenditures	$	137,717	$	1,036	$	138,753


	Three Months Ended June 30, 2024
(in thousands)	Airline		Sunseeker		Consolidated





REVENUES FROM EXTERNAL CUSTOMERS	$	649,472	$	16,811	$	666,283
OPERATING EXPENSES:
Salaries and benefits	197,417		12,525		209,942
Aircraft fuel	170,060		—		170,060
Station operations	69,798		—		69,798
Depreciation and amortization	59,345		6,016		65,361
Maintenance and repairs	30,730		—		30,730
Sales and marketing	25,918		1,580		27,498
Aircraft lease rentals	5,749		—		5,749
Other operating expense(1)	23,426		10,708		34,134
Special charges, net of recoveries	20,073		(1,959)		18,114
Total operating expenses	602,516		28,870		631,386
OPERATING INCOME (LOSS)	46,956		(12,059)		34,897
OTHER (INCOME) EXPENSES:
Interest income	(11,130)		—		(11,130)
Interest expense	34,121		5,423		39,544
Capitalized interest	(11,609)		—		(11,609)
Other non-operating expense	67		—		67
INCOME (LOSS) BEFORE INCOME TAXES	$	35,507	$	(17,482)	$	18,025

Capital expenditures	$	39,044	$	4,039	$	43,083


	Six Months Ended June 30, 2025
(in thousands)	Airline		Sunseeker		Consolidated
REVENUES FROM EXTERNAL CUSTOMERS	$	1,337,136	$	51,322	$	1,388,458
OPERATING EXPENSES:
Salaries and benefits	423,859		21,682		445,541
Aircraft fuel	332,085		—		332,085
Station operations	148,753		—		148,753
Depreciation and amortization	124,672		7,158		131,830
Maintenance and repairs	71,233		—		71,233
Sales and marketing	48,489		3,444		51,933
Aircraft lease rentals	16,942		—		16,942
Other operating expense(1)	51,107		25,152		76,259
Special charges, net of recoveries	15,987		100,382		116,369
Total operating expenses	1,233,127		157,818		1,390,945
OPERATING INCOME (LOSS)	104,009		(106,496)		(2,487)
OTHER (INCOME) EXPENSES:
Interest income	(22,294)		—		(22,294)
Interest expense	57,070		19,470		76,540
Capitalized interest	(11,050)		—		(11,050)
Other non-operating expense	941		—		941
INCOME (LOSS) BEFORE INCOME TAXES	$	79,342	$	(125,966)	$	(46,624)

Capital expenditures	$	220,853	$	1,442	$	222,295


	Six Months Ended June 30, 2024
(in thousands)	Airline		Sunseeker		Consolidated
REVENUES FROM EXTERNAL CUSTOMERS	$	1,281,990	$	40,698	$	1,322,688
OPERATING EXPENSES:
Salaries and benefits	396,926		26,343		423,269
Aircraft fuel	340,147		—		340,147
Station operations	136,266		—		136,266
Depreciation and amortization	117,212		11,993		129,205
Maintenance and repairs	61,008		—		61,008
Sales and marketing	54,796		3,602		58,398
Aircraft lease rentals	11,734		—		11,734
Other operating expense(1)	57,742		23,363		81,105
Special charges, net of recoveries	34,987		(3,775)		31,212
Total operating expenses	1,210,818		61,526		1,272,344
OPERATING INCOME (LOSS)	71,172		(20,828)		50,344
OTHER (INCOME) EXPENSES:
Interest income	(23,371)		—		(23,371)
Interest expense	68,858		10,846		79,704
Capitalized interest	(22,468)		(326)		(22,794)
Other non-operating expense	117		—		117
INCOME (LOSS) BEFORE INCOME TAXES	$	48,036	$	(31,348)	$	16,688

Capital expenditures	$	161,219	$	18,043	$	179,262

(1) Other operating expenses in the Airline segment consist of insurance, crew training and travel, legal expense, gains and losses on the sale of flight equipment, and other general and administrative expenses. Other operating expenses in the Sunseeker segment consist of food and beverage cost of goods sold, contract labor, property tax, insurance, and other general and administrative expense.

Total assets were as follows as of the dates indicated:


(in thousands)	As of June 30, 2025		As of December 31, 2024
Airline	$	4,191,346	$	4,116,289
Sunseeker Resort	197,795		313,564

Consolidated	$	4,389,141	$	4,429,853

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Allegiant Travel CO 10-Q