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Allegiant Travel Company
(NASDAQ:ALGT)
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Rating:50Neutral
Price Target:
$90.00
▼(-8.24% Downside)
Action:Reiterated
Date:08/11/26
Overall score is held down primarily by only moderate financial performance (thin net profitability, earnings volatility, and elevated leverage) and weak near-term technical momentum (below key moving averages with negative MACD). A constructive earnings call with strong revenue/unit-revenue momentum and synergy progress provides meaningful support, but valuation remains stretched with a high P/E and no stated dividend yield.
Positive Factors
Material unit revenue strength (TRASM)
Sustained, large TRASM gains indicate durable pricing power in leisure routes and effective demand stimulation. Higher unit revenue supports margin resilience and cash generation even if capacity fluctuates, improving the company's ability to fund growth and absorb cyclical shocks over months.
Negative Factors
Elevated leverage
High leverage increases interest and refinancing sensitivity and limits financial flexibility in an inherently cyclical airline industry. Even with available liquidity and recent financings, elevated net leverage and interest burden materially raise downside risk and constrain capital allocation options for months.
Read all positive and negative factors
Positive Factors
Negative Factors
Material unit revenue strength (TRASM)
Sustained, large TRASM gains indicate durable pricing power in leisure routes and effective demand stimulation. Higher unit revenue supports margin resilience and cash generation even if capacity fluctuates, improving the company's ability to fund growth and absorb cyclical shocks over months.
Read all positive factors
Allegiant Travel Company (ALGT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.30B
Dividend YieldN/A
Average Volume (3M)579.73K
Price to Earnings (P/E)62.0
Beta (1Y)1.51
Revenue Growth12.24%
EPS GrowthN/A
CountryUS
Employees6,000
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)1.36
Shares Outstanding27,337,755
10 Day Avg. Volume427,678
30 Day Avg. Volume579,731
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)1.46
Price to Sales (P/S)0.59
P/FCF Ratio20.49
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$133.58Price Target Upside36.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)6.79
Revenue Forecast (FY)$3.70B
Allegiant Travel Company Business Overview & Revenue Model
Company Description
Allegiant Travel Company, founded in 1997 and headquartered in Las Vegas, Nevada, operates as a leisure travel provider primarily catering to residents in smaller, under-served cities across the United States. The company specializes in offering d...
How the Company Makes Money
Allegiant primarily makes money through (1) passenger ticket revenue and (2) a large portfolio of ancillary revenues tied to its ultra-low-cost carrier model. Ticket revenue comes from selling seats on scheduled flights, typically priced to stimul...
Allegiant Travel Company Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive outlook driven by record revenue, strong unit revenue gains (TRASM +24.6% for Allegiant), industry‑leading margins (9.2% operating margin), successful early integration wins (cross‑sell, Navitaire alignment, Expedia launch), fleet modernization benefits from MAX deliveries, and a robust balance sheet and liquidity. Notable near‑term challenges include higher fuel prices, elevated nonfuel unit costs and one‑time cash outflows (pilot retention bonus), plus pilot attrition at Sun Country resulting in off‑peak capacity reductions. Management provided multi‑quarter clarity (Q3 guide and full‑year EPS > $6) and a path to capture minimum $140M run‑rate synergies by 2029. Overall, the positives—sizable revenue and margin outperformance, successful integration momentum and strong liquidity—outweigh the near‑term headwinds.Positive Updates
Record Quarterly Revenue and Strong Stand‑alone Performance
Combined Q2 revenue of $943.5M (includes Sun Country May 13–Jun 30); stand‑alone Allegiant Q2 total revenue $776M, up 16.1% YoY. Stand‑alone Allegiant scheduled service air revenue increased $102M YoY, roughly offsetting a $99M increase in fuel expense.
Negative Updates
Sun Country Pilot Attrition and MSP Capacity Cuts
Elevated pilot attrition at Sun Country concentrated among junior MSP pilots (competition from the largest Twin Cities carrier). Company is reducing off‑peak capacity in Twin Cities in H2 2026 and pulled down September capacity at Sun Country; expects to expand training classes with full classes scheduled to enter service later this year.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong Stand‑alone Performance
Combined Q2 revenue of $943.5M (includes Sun Country May 13–Jun 30); stand‑alone Allegiant Q2 total revenue $776M, up 16.1% YoY. Stand‑alone Allegiant scheduled service air revenue increased $102M YoY, roughly offsetting a $99M increase in fuel expense.
Read all positive updates
Company Guidance
Guidance highlights: for 3Q26 the combined company expects scheduled service ASMs down ~5.5% YoY (from a pro‑forma ~6.1B ASMs), third‑quarter total revenue roughly +16.5% vs. combined airline‑only 3Q25 (~$808M), unit revenue growth in line with 2Q’s +24.6% TRASM, an operating profit (operating margin ~2% at the midpoint) and a consolidated loss per share of about $(0.50) (assumes ~27.3M shares) with fuel assumed at $3.80/gal; legacy Allegiant non‑fuel unit costs are expected to be up ~9–10% YoY in 3Q and consolidated non‑fuel CASM ex‑cargo up ~10–12% YoY, with Q3 net interest expense ~ $43M. Full‑year 2026 outlook: EPS ≥ $6 (management framed as “at least $6”/“greater than $6” depending on the fuel assumption), CapEx updated to ~ $850M (Q2 CapEx was $188M), available liquidity ~$1.3B (cash & investments ~$1.1B + $250M revolver), total debt $2.8B / net debt $1.7B / pro‑forma net leverage ~2.6x, cash = 27% of TTM revenue, planned pilot retention bonus payout ≈ $275M, fuel sensitivity of ~$0.10/gal ≈ $0.50 EPS, and a minimum of $140M run‑rate synergies targeted by 2029.Allegiant Travel Company Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
43
Neutral
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.89B | 2.61B | 2.51B | 2.51B | 2.30B | 1.71B |
| Gross Profit | 1.28B | 400.67M | 1.57B | 664.37M | 340.47M | 231.54M |
| EBITDA | 415.81M | 326.94M | 60.86M | 490.24M | 305.57M | 446.13M |
| Net Income | 25.98M | -44.70M | -240.24M | 117.60M | 2.49M | 151.85M |
Balance Sheet | ||||||
| Total Assets | 6.44B | 4.21B | 4.55B | 4.92B | 4.51B | 4.01B |
| Cash, Cash Equivalents and Short-Term Investments | 1.05B | 805.65M | 797.55M | 831.00M | 955.05M | 1.22B |
| Total Debt | 2.85B | 1.86B | 2.15B | 2.36B | 2.21B | 1.88B |
| Total Liabilities | 4.67B | 3.16B | 3.46B | 3.59B | 3.29B | 2.79B |
| Stockholders Equity | 1.78B | 1.05B | 1.09B | 1.33B | 1.22B | 1.22B |
Cash Flow | ||||||
| Free Cash Flow | 116.69M | 75.10M | 38.30M | -447.39M | -131.64M | 294.58M |
| Operating Cash Flow | 420.27M | 389.77M | 338.46M | 423.09M | 303.05M | 538.19M |
| Investing Cash Flow | -349.76M | -220.43M | 5.58M | -721.88M | -491.42M | -593.28M |
| Financing Cash Flow | 246.39M | -280.90M | -201.30M | 212.92M | 33.12M | 285.47M |
Allegiant Travel Company Technical Analysis
Negative
98.08
Price Trends
100.06
Negative
90.99
Negative
88.15
Negative
Market Momentum
-4.80
Positive
32.11
Neutral
2.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALGT, the sentiment is Negative. The current price of 98.08 is above the 20-day moving average (MA) of 94.51, below the 50-day MA of 100.06, and above the 200-day MA of 88.15, indicating a bearish trend. The MACD of -4.80 indicates Positive momentum. The RSI at 32.11 is Neutral, neither overbought nor oversold. The STOCH value of 2.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALGT.
Allegiant Travel Company Risk Analysis
Allegiant Travel Company disclosed 45 risk factors in its most recent earnings report. Allegiant Travel Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allegiant Travel Company Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.10B | 10.29 | 15.02% | ― | 9.10% | 1.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | $1.98B | -2.17 | -45.51% | ― | 3.99% | -119.13% | |
51 Neutral | $887.31M | -4.75 | -93.84% | ― | 9.97% | -472.97% | |
51 Neutral | $1.46B | -3.76 | -120.34% | ― | 9.95% | -1057.36% | |
50 Neutral | $2.30B | 61.99 | 2.10% | ― | 12.24% | ― |
* Industrials Sector Average
ALGT
Allegiant Travel Company
78.07
22.13
39.56%
JBLU
JetBlue Airways
4.90
-0.24
-4.67%
SKYW
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102.42
-11.02
-9.71%
VLRS
Controladora Vuela Compania de Aviacion SAB de CV
7.14
1.18
19.80%
ULCC
Frontier Group Holdings
5.99
1.73
40.61%
Allegiant Travel Company Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Allegiant Travel posts record Q2 revenue and earnings
Positive
Aug 4, 2026
On August 4, 2026, Allegiant Travel Company reported second-quarter 2026 results showing record operating revenue of $943.5 million, up 36.9 percent year over year, and adjusted diluted earnings per share of $2.19, a 78 percent increase, despite a...
Business Operations and StrategyPrivate Placements and Financing
Allegiant Travel amends major Boeing financing facility
Neutral
Jul 30, 2026
Allegiant Travel Company and Allegiant Air amended a pre-delivery payment facility with Carlyle Aviation’s Runway Seven Lender on July 27, 2026, providing an undrawn $231.0 million full-recourse loan commitment to finance PDPs for Boeing air...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Allegiant Travel boosts Q2 outlook after Sun Country deal
Positive
Jun 30, 2026
Following Allegiant Travel Company’s acquisition of Sun Country Airlines on May 13, 2026, the company’s second-quarter 2026 results will reflect consolidated financial and operational performance for the combined carrier from the closi...
Executive/Board ChangesShareholder Meetings
Allegiant Travel shareholders back board, pay and auditor
Positive
Jun 26, 2026
At Allegiant Travel Company’s 2026 Annual Meeting of Stockholders held on June 25, 2026, shareholders elected an 11-member board of directors, with each nominee receiving strong support despite a modest number of withheld votes and over one ...
Business Operations and StrategyPrivate Placements and Financing
Allegiant Travel Upsizes 2031 Senior Secured Notes Offering
Positive
Jun 10, 2026
On June 9, 2026, Allegiant Travel Company announced it had priced an upsized private offering of $650 million in 7.125% senior secured notes due 2031 at 99.479% of par, increasing the deal by $150 million from its earlier $500 million plan. The no...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Allegiant Launches $500 Million Notes Offering, Refinances Debt
Positive
Jun 9, 2026
Allegiant Travel Company has completed the acquisition of Sun Country Airlines Holdings, Inc. through a two-step merger completed on May 13, 2026, making Sun Country a wholly owned subsidiary via reorganized merger entities. The company has prepar...
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesM&A Transactions
Allegiant Travel Completes Sun Country Acquisition, Expands Leadership
Positive
May 13, 2026
On May 13, 2026, Allegiant Travel Company completed its acquisition of Sun Country Airlines Holdings, Inc., creating what it describes as the leading leisure-focused U.S. airline. The all-stock-and-cash deal converted each Sun Country share into c...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.