Allegiant Travel (NASDAQ: ALGT) reported Q2 EPS of $3.10, $0.39 better than the analyst estimate of $2.71. Revenue for the quarter came in at $436.8 million versus the consensus estimate of $438.34 million.

"We are proud to announce our 62nd consecutive profitable quarter," stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. "This is the second consecutive quarter of EPS growth, despite seeing our fuel cost per gallon increase by over 39 percent in the second quarter. This is a wonderful testament to the hard work of our team members as we navigate another busy summer.

"We are continuing our transition to an all-Airbus fleet. We have done an excellent job year-to-date but this summer was the critical period in this transition, including the timely delivery and induction of fifteen Airbus aircraft, and retirement of six MD-80s. Today we are on our schedule as planned, though some delayed deliveries in late May impacted our peak June period, in terms of top line and operations reliability. Looking forward, we should complete our transition at the end of November as scheduled.

"Our CASM-ex fuel results came in nicely. Our improved operational results as well as efficiencies from the Airbus fleet are beginning to pay dividends, and we are pleased with where the cost trend line is headed. Additionally, fuel efficiency continues to improve with the transition, with 76 vs. 72 ASMs per gallon this year compared to the same period last year.

“The Sunseeker resort project continues to move ahead. We are closing in on a financing plan and hope to announce the specifics in the next 60 to 90 days. We continue to be impressed with the many synergies and business alignments between Sunseeker and our air service presence on the west coast of Florida. Our Punta Gorda destination - a 15 minute drive from our Sunseeker location, grew over 30 percent in capacity on a trailing twelve month basis. We are on a pace to carry over 1.5 million passengers in and out of Punta Gorda this year."

2018 outlook

• Third quarter scheduled and system ASMs are expected to grow between thirteen and fifteen percent vs last year
• 2018 full year ASM growth is expected to be between nine and eleven percent due to slower than expected aircraft deliveries
• 2018 fuel cost is expected to be $2.35 per gallon using the forward curve as of July 24, 2018
• 2018 EPS is expected to be between $9 and $10 per share due to the expected higher fuel cost
• Fuel expense is expected to increase approximately $35 million from when guided in November 2017

GUIDANCE:

Allegiant Travel sees FY2018 EPS of $9.00-$10.00, versus the consensus of $10.49.

For earnings history and earnings-related data on Allegiant Travel (ALGT) click here.