Allegiant Travel Company: Sunseeker Sale Could Be A Catalyst
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Allegiant Travel Company is considering selling its Sunseeker Resort to refocus on its core airline business. The company reported a $234 million operating loss due to the resort's impairment and higher airline salary costs. Allegiant plans to increase capacity by 16% in 2025, with expected adjusted earnings per share between $7.75 and $10.25.
February 24, 2025 | 6:30 pm
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Allegiant Travel Company is contemplating the sale of Sunseeker Resort to concentrate on its airline operations. The company reported a $234 million operating loss, mainly due to the resort's impairment and increased airline salary costs. Allegiant plans a 16% capacity increase in 2025, with projected EPS between $7.75 and $10.25.
The potential sale of Sunseeker Resort could positively impact Allegiant's stock by allowing the company to refocus on its core airline business, which is expected to grow with a 16% capacity increase in 2025. The projected EPS range suggests potential profitability improvements.
CONFIDENCE 90
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