Allegiant Travel Company (AGH) Q3 2026 Earnings Report
DE:AGH Q3 2026 EPS Results
- Actual EPS
- -EUR 0.03
- Consensus EPS
- -EUR 0.39
- Beat/Miss
- Beat by +EUR 0.37
- One Year Ago EPS
- -EUR 1.86
DE:AGH Q3 2026 Revenue Results
- Actual Revenue
- EUR 854.38M
- Expected Revenue
- EUR 840.95M
- Beat/Miss
- Beat by +EUR 13.43M
- YoY Revenue Growth
- +71.12%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- After Close
- Conference Call
- Wednesday, November 4, 2026
Allegiant Travel Company's next earnings date is estimated for February 3, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was predominantly positive. Strong leisure demand, 19% revenue growth on lower capacity, record TRASM, improved margins, robust cash sales, successful commercial initiatives, integration progress and maintained full-year earnings guidance significantly outweighed the net loss, elevated fuel and nonfuel costs, staffing constraints at Sun Country and limited first-quarter visibility.
For the fourth quarter, combined scheduled service growth is expected to be approximately 1.7% higher versus the fourth quarter of 2025, while combined capacity is expected to be roughly flat to the fourth quarter of '25; combined TRASM should exceed 20% on a year-over-year basis, fourth quarter TRASM is expected to set a record for the highest in the company's history, fuel cost is expected to be about $4.75 per gallon, operating margin approximately 6.5%, and consolidated earnings roughly $1.25 per share. Full year 2026 adjusted earnings per share guidance remains greater than $6, with the full year guide of greater than $6 including earnings from the Sun Country segment from the period after ownership. Fixed fee flying is expected to run at a small kind of low single digits kind of run rate going forward on an absolute basis, Sun Country scheduled service flying is expected to be down somewhere in the 10% range in the fourth quarter, and 2027 capacity growth could be up low single digits to maybe mid-single digits, with approximately 20 aircraft deliveries, around 45 MAX aircraft by year-end, more than $140 million in annual run rate synergies by 2029, 30-plus percent of ASMs probably for the combined company from the MAX fleet, and ASMs per gallon potentially reaching 88, maybe even closer to 90.
- Revenue Growth and Margin Expansion Despite Higher Fuel CostsThird-quarter consolidated revenue grew 19% despite a nearly 6% reduction in capacity, while consolidated adjusted operating margin expanded by 340 basis points year over year. Management attributed the performance to strong leisure demand, disciplined capacity allocation, more MAX aircraft and commercial initiatives, despite a 55% increase in fuel cost per gallon.
- Record Combined Revenue and TRASM PerformanceThird-quarter total operating revenue was $962 million, up 19% year over year on 6% less capacity. Combined TRASM was $0.1418, up 28.3% year over year, marking a third-quarter record for both brands and the second-best quarterly TRASM in company history.
- Strong Charter, Cargo and Demand MetricsCharter and cargo contributed a record $136 million in third-quarter revenue across both brands. Load factors expanded by 2 points, marking the fourth consecutive quarter of pro forma expansion. Ancillary revenue per passenger increased by more than $3 while passengers per departure increased by nearly 5.
- Yield and Cash Sales MomentumAir revenue per passenger increased 50% versus the third quarter of 2025, while the third-party revenue line grew by high single-digit percentages. Cash sales continued to grow at double-digit rates above forward seat growth.
- Competitive Value Proposition and Operating ReliabilityTotal fares were roughly 30% below the industry average, and Allegiant was the number-one or number-two carrier in more than 90% of its origination markets. The company said it led the industry in completion factor during the peak summer travel season, and Skytrax named Allegiant the best low-cost airline in North America for the third consecutive year.
- Credit Card Program Growth and Bank of America ExtensionCo-brand remuneration increased nearly 24% year over year and represented roughly 6% of stand-alone Allegiant revenue. Spend on and acquisition of the Allegiant Allways Visa each exceeded 20% growth in the quarter, the third consecutive quarter of both exceeding 20%. Allegiant also signed a five-year extension with Bank of America and continues to target co-brand remuneration equal to 10% of stand-alone Allegiant revenue.
- MAX Fleet Expansion and EfficiencyThe 737 MAX generated more than 22% of legacy Allegiant's third-quarter ASMs, up from 12% a year earlier, while representing only 17% of the legacy fleet. The company said the aircraft significantly reduce fuel and maintenance costs. Two MAX aircraft entered service during the quarter, and management expects approximately 20 deliveries in 2027, bringing the in-service MAX fleet to around 45 aircraft by year-end.
- Strong Fleet Order BookAllegiant exercised six MAX 8 options with deliveries expected in 2028, bringing total firm orders to 56 aircraft, including 22 delivered through October, with another 74 options remaining available.
- Premium Product MomentumAllegiant Extra is now available on 75% of the fleet, and the company said Allegiant Extra and Sun Country Best continue to meaningfully boost unit ancillary revenue per flight. Early bookings for Allegiant First, scheduled to launch in March 2027, are exceeding initial expectations.
- Expedia Distribution Partnership Expanding ReachApproximately 4% of bookings came through Expedia, with meaningfully more than half of those customers described as net new to Allegiant. The partnership is attracting a younger customer demographic, supporting load factors and reaching customers who had not previously considered Allegiant.
- Sun Country Integration ProgressCustomers can now search and book across Allegiant and Sun Country. Early synergy benefits have been realized through consolidated gates and ground handling, combined insurance coverage, elimination of duplicate corporate costs and greater purchasing power. Management remains confident in achieving more than $140 million in annual run-rate synergies by 2029.
- Strong Third-Quarter Profitability and LiquidityThe combined entity generated $29.8 million of operating income, a 3.1% operating margin and $111 million of EBITDA, producing an 11.5% EBITDA margin. Total available liquidity was $1.1 billion, including $865 million in cash and investments and $250 million in undrawn revolvers. The company also reported approximately $2 billion in fleet equity.
- Fourth-Quarter and Full-Year Earnings Outlook MaintainedManagement expects fourth-quarter TRASM to set a record, with an approximately 6.5% operating margin and consolidated earnings of roughly $1.25 per share at an assumed fuel price of $4.75 per gallon. Full-year 2026 adjusted earnings guidance remains greater than $6 per share, including Sun Country earnings only from the period after ownership began.
- Flexible Network and Capacity ModelThe summer network added 86 routes over the past 18 months, including 50 that operated only during the summer peak, and management expects the vast majority to return for summer 2027. Fourth-quarter scheduled-service growth is expected to be approximately 1.7% above the fourth quarter of 2025, with 20% of combined scheduled-service ASMs expected to be flown by MAX aircraft.
- Customer Experience InitiativesThe announcement of complementary in-flight beverages resulted in the expected increase in NPS. Allegiant also partnered with UNLV's College of Hospitality to create a customer-experience training program, and more than 5 million customers traveled on the combined airlines during the quarter.
- Pilot Recruiting and Workforce RecognitionPilot recruiting classes are full, with new hires expected to enter service in the coming weeks. Legacy Sun Country pilot attrition has declined since the prior call. Following ratification of the legacy Allegiant pilot agreement, the company distributed $270 million in bonuses, averaging almost $200,000 per pilot.
- Capital Investment and Long-Term Efficiency TargetsThird-quarter consolidated capital expenditures were approximately $136 million, with an additional $20 million of deferred heavy-maintenance spending. Full-year 2026 CapEx is expected to be approximately $850 million. Management said ASMs per gallon could increase from approximately 86 in 2026 to 88 or potentially closer to 90 in 2027 as MAX utilization increases.
DE:AGH Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 03, 2027 | 2026 (Q4) | 0.92- | 2.42 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | -0.39-0.03 | -1.86 | 98.56% (+1.83) | |
| Aug 04, 2026 | 2026 (Q2) | 0.991.95 | 1.09 | 78.05% (+0.85) | |
| Apr 30, 2026 | 2026 (Q1) | 3.053.35 | 1.61 | 108.29% (+1.74) | |
| Feb 04, 2026 | 2025 (Q4) | 1.792.42 | 1.87 | 29.52% (+0.55) | |
| Nov 04, 2025 | 2025 (Q3) | -1.57-1.86 | -1.79 | -3.47% (-0.06) | |
| Aug 04, 2025 | 2025 (Q2) | 0.691.09 | 1.57 | -30.51% (-0.48) | |
| May 06, 2025 | 2025 (Q1) | 1.371.61 | 0.51 | 217.54% (+1.10) | |
| Feb 04, 2025 | 2024 (Q4) | 1.841.87 | 0.1 | 1809.09% (+1.77) | |
| Oct 30, 2024 | 2024 (Q3) | -1.66-1.79 | 0.08 | -2344.44% (-1.87) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
