By Sabela Ojea

Allegiant Travel's losses widened in the fourth quarter after seeing its operating expenses surge in the period.

The airline operator on Tuesday posted a net loss of $216.2 million, or $12 a share, compared with a loss of $2 million, or 13 cents a share, for the same period a year earlier.

The company, which most recently guided for per-share earnings to range from breakeven to $1, said its operating costs rose 49% to $891.7 million.

Stripping out one-time items, the company's earnings per share came in at $2.10. Analysts polled by FactSet had forecast adjusted earnings of $2.07.

Revenue rose 2.7% to $627.7 million, beating the $627.2 million expected by Wall Street, according to FactSet.

"As we move into 2025, we remain focused on driving improved performance with a clear path ahead," Chief Executive Gregory Anderson said. "Although our planned 17 percent increase in capacity this year will naturally pressure unit revenues, this growth should be accretive to earnings, as our infrastructure enables us to grow efficiently, and is expected to result in a sizable reduction in our unit costs."

Anderson said Allegiant has made progress with its comprehensive review of Sunseeker Resort. The company has launched a competitive process to sell at least a majority interest in the resort and is reviewing indications of interest from several investors.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

February 04, 2025 16:35 ET (21:35 GMT)

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