Allegiant traffic surges 10% in 2025 as Sun Country deal redraws leisure map

Allegiant Travel (NASDAQ:ALGT) capped a year of aggressive expansion with a strong December performance, reporting that it carried 18.5 million passengers in 2025—a 10.5% increase over the previous year.

The preliminary traffic data arrives at a pivotal moment for the Las Vegas-based carrier, which recently stunned the industry by announcing a definitive agreement to acquire Sun Country Airlines.

For the month of December, Allegiant’s scheduled service passengers rose 4.6% to 1.6 million.

More notably, the fourth quarter saw a 13.3% surge in volume, supported by a 12% increase in revenue passenger miles (RPMs).

Despite the capacity push, the company managed fuel volatility effectively, with December fuel costs averaging $2.48 per gallon, down from the full-year average of $2.55.

"We are entering 2026 with significant momentum," said CEO Gregory Anderson.

"Our focus on peak-day flying and the successful integration of our first Boeing 737 MAX aircraft has allowed us to grow capacity by nearly 13% while maintaining industry-leading margins."

The traffic gains provide a solid foundation for the upcoming merger with Sun Country (NASDAQ:SNCY).

The deal, valued at approximately $18.89 per Sun Country share, will create a leisure powerhouse with 195 aircraft and a combined 22 million annual passengers.