11:00 AM EDT, 07/08/2025 (MT Newswires) -- Allegiant Travel's ( ALGT ) sale of Sunseeker Resort Charlotte Harbor has brought the airline sector's "weak fundamentals" into focus, BofA Securities said in a Tuesday note.

BofA Securities said it expects the company's Q3 earnings to be weak as it covers off-peak travel periods, with unit revenue during the quarter estimated to decline by 8.5%. The investment firm's 2025 forecasts for ALGT

are below consensus.

In addition, BofA Securities said Sunseeker's $200 million sale price is below its expected selling price of $236 million. The investment firm also noted that proceeds might not cover accrued pilot pay and Allegiant Travel ( ALGT ) could owe pilots nearly $240 million by the end of 2025.

BofA Securities cut its price target for Allegiant Travel ( ALGT ) to $45 from $50, with an underperform rating.

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