Allegiant Travel Company (ALGT)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	960,024	1,455,660	1,416,580	494,085	-145,490
Revenue	US$ in thousands	2,512,590	2,509,860	2,301,830	1,707,910	990,073
Gross profit margin		38.21%	58.00%	61.54%	28.93%	-14.69%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $960,024K ÷ $2,512,590K
= 38.21%

The gross profit margin of Allegiant Travel Company has displayed notable fluctuations over the past five years.

- In December 31, 2020, the company experienced a concerning gross profit margin of -14.69%, indicating that the cost of goods sold exceeded the revenue generated from sales, leading to a negative gross margin.
- However, by December 31, 2021, there was a significant improvement as the gross profit margin surged to 28.93%, reflecting a more profitable operation where the company achieved a positive gross margin.
- The year 2022 saw a substantial increase in the gross profit margin to 61.54%, showcasing a strong performance in effectively managing the cost of goods sold and boosting revenue generation.
- Despite a slight drop in December 31, 2023, with a gross profit margin of 58.00%, the company continued to maintain a healthy margin, indicating efficient cost control and solid revenue streams.
- In December 31, 2024, the gross profit margin decreased to 38.21%, indicating a slight decline in profitability compared to the previous year, though still reflecting a competitive margin.

Overall, Allegiant Travel Company's gross profit margin trended positively over the years, demonstrating a mix of challenges and successes in managing costs and driving revenue growth.