Allegiant Travel (NASDAQ:ALGT) saw its stock surge 5.24% in after-hours trading on Tuesday, following the release of its first-quarter 2025 financial results. The company's earnings significantly exceeded analyst expectations, overshadowing a slight miss on revenue projections.

The low-cost airline reported adjusted earnings per share (EPS) of $1.81 for Q1, handily beating the analyst consensus estimate of $1.64 by 10.37%. This represents a substantial improvement from the same period last year when the company posted earnings of $0.57 per share. Allegiant's quarterly revenue came in at $699.07 million, just shy of the expected $699.91 million, but still marking a 6.50% increase year-over-year.

While investors cheered the strong earnings performance, some caution remains as Allegiant announced the withdrawal of its full-year 2025 guidance. The company did, however, provide an outlook for the second quarter, projecting adjusted EPS in the range of $0.00 to $1.00. Despite the mixed signals, the market's immediate reaction suggests that traders are focusing on the positive earnings surprise and the company's ability to improve profitability in a challenging airline industry environment.