United States: Allegiant Air Reports Passenger Surge in December but Faces Annual Decline – What This Means for U.S. Travelers

Published on January 29, 2025

Allegiant Air, the self-proclaimed king of budget travel, just dropped its December 2024 traffic report, and the numbers are making waves. But is the airline truly flying high, or are storm clouds gathering on the horizon?

The numbers tell two very different stories. December 2024 looked strong, with passenger numbers skyrocketing by 13.9% year over year, a sure sign that travel demand is alive and well. But zoom out to the full-year figures, and the story changes drastically—Allegiant quietly posted a 2.2% drop in total passengers compared to 2023.

So what’s really happening here? Is Allegiant riding the budget travel boom, or is the low-cost model under threat?

Passengers Are Flying—But Are They Staying?

Let’s talk raw numbers. In December 2024, 1,544,874 passengers flew Allegiant, compared to 1,356,025 in December 2023. That’s a significant 13.9% increase, signaling a possible revival in last-minute holiday travel.

But then, the red flags appear. Looking at full-year statistics, Allegiant’s total passengers fell from 17,143,870 in 2023 to 16,765,283 in 2024—a loss of nearly 400,000 travelers.

If Allegiant is the affordable airline of the people, why are they losing passengers over a full year?

The Budget Airline Dilemma: Rising Costs, Falling Demand?

One word: uncertainty. While Allegiant remains a popular choice for budget travelers, the airline industry is not the same as it was pre-pandemic. Higher fuel prices, shifting consumer behavior, and growing competition from both legacy carriers and ultra-low-cost rivals have created a volatile industry landscape.

And let’s not forget Allegiant’s own tricky reputation—with additional fees for baggage, seat selection, and even boarding passes printed at the airport, budget-conscious travelers are starting to question whether the airline is as “cheap” as it claims to be.

Load Factor Decline: Why It Matters

Allegiant’s load factor, or the percentage of available seats filled, is a key performance metric for airlines. A higher load factor means more profit per flight. A lower one? Empty seats = lost revenue.

The numbers:

• December 2023 Load Factor: 82.5%
• December 2024 Load Factor: 81.4%
• Full-Year 2023 Load Factor: 85.9%
• Full-Year 2024 Load Factor: 83.6%

The trend is clear: Allegiant’s flights are flying emptier than before.

For a budget airline, this is alarming news. The whole low-cost carrier model depends on packing every seat with paying customers. If fewer people are booking, something is going wrong.

Allegiant’s Secret Weapon: Small Airports, Big Profits?

Despite the drop in total passengers, Allegiant still has a unique advantage over other airlines—its business model relies on serving smaller airports with minimal competition.

Unlike major airlines that focus on hub-to-hub travel, Allegiant flies point-to-point from smaller cities directly to vacation hotspots, offering nonstop flights where other airlines force layovers.

The upside? Less competition = more pricing control. The downside? Fewer travelers = greater risk.

Are Travelers Turning Away from Budget Airlines?

The big picture here isn’t just about Allegiant—it’s about budget air travel as a whole. In an era where consumers value flexibility, better service, and lower hidden fees, has the ultra-low-cost airline model reached its peak?

Allegiant’s struggles are part of a larger trend:

• Spirit Airlines is experiencing similar turbulence, with financial struggles and merger uncertainties.
• Frontier Airlines has been scrambling to maintain competitiveness.
• Even Southwest Airlines, long seen as the “customer-friendly budget airline,” has faced backlash over operational failures.

So, is cheap travel losing its shine?

Fuel Prices: The Hidden Threat to Allegiant’s Future

One major cost factor that could make or break Allegiant in 2025? Fuel prices.

• December 2024 fuel cost per gallon: $2.47
• 4th Quarter 2024 fuel cost per gallon: $2.50
• Full-Year 2024 fuel cost per gallon: $2.76

While not catastrophic, rising fuel prices eat into Allegiant’s already slim margins. And for an airline that competes almost entirely on price, any increase in costs is dangerous territory.

What This Means for Travelers

So, should you still book with Allegiant? Here’s what the airline’s 2024 performance means for budget-conscious travelers:

• Flights are still cheap—but be wary of extra fees. That $49 fare? Expect to pay much more after adding luggage, seat selection, and convenience fees.
• Flights may not be as packed as before. If you like a bit of extra space, now might be the best time to fly Allegiant while load factors remain lower.
• New routes and airport expansions could be on the way. Allegiant is still expanding service to new small cities, meaning more nonstop vacation options.