Allegiant Travel Company (ALGT) AI Stock Analysis

• Market Cap: $995.25M
• Dividend Yield: 1.1%
• Average Volume (3M): 395.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: 1.54%
• EPS Growth: -466.46%
• Country: US
• Employees: 6,057
• Sector: Industrials
• Sector Strength: 91
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 1.81
• Shares Outstanding: 18,254,744
• 10 Day Avg. Volume: 451,551
• 30 Day Avg. Volume: 395,787
• PEG Ratio: -0.35
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.27
• Enterprise Value/Market Cap: 2.81
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: 3.20
• 1Y Price Target: $60.30
• Price Target Upside: 10.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 52 Neutral
• Price Target: $55.00 ▲(0.88%Upside)

Allegiant Travel Company faces significant challenges, primarily from financial performance and valuation concerns, with high leverage and negative profitability. However, the company shows resilience through operational improvements and strategic initiatives, as highlighted in the earnings call and recent corporate events.

Positive Factors

Demand Stability

ALGT called out stability in the demand environment and cited some indications of improvement over the last several days.

Fleet Optimization

Management is positive on benefits from increasing the number of MAX aircraft in the fleet and growing premium seat mix to drive better ancillary performance.

Product Growth

Revenue should benefit from growth in the Allegiant Extra product and regained functionality from the Navitaire cutover.

Negative Factors

Capacity Growth Concerns

ALGT stock dropped 15% largely driven by their surprising announcement to grow capacity significantly by year end, which flew in the face of the industry trend to prioritize RASM over growth-driven margin expansion.

Earnings Forecast

Forecasts for ALGT earnings are below consensus, suggesting weaker performance expectations.

Financial Performance

The price objective is lowered to $45 from $50 on the lower sale proceeds.

Allegiant Travel Company Business Overview & Revenue Model

Company Description

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 14, 2022, it operated a fleet of 110 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including baggage fees, advance seat assignments, travel protection products, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company operates a golf course. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.

How the Company Makes Money

Allegiant Travel Company makes money primarily through passenger ticket sales for its air transportation services, which constitute the bulk of its revenue. Additionally, Allegiant generates significant income from ancillary services, including baggage fees, seat selection fees, and onboard purchases. The company also earns revenue through commissions on hotel bookings, rental car reservations, and the sale of travel packages that combine flights with other travel services. Allegiant's strategy of serving underserved markets with limited competition allows it to maintain a solid pricing power, contributing to its profit margins. Partnerships with hotels, car rental agencies, and other travel-related businesses further bolster its revenue through commission-based arrangements.

Allegiant Travel Company Financial Statement Overview

Summary

Allegiant Travel Company shows operational and profitability challenges. The income statement reveals losses with negative net profit margins, the balance sheet indicates high leverage, but cash flow improvements suggest some resilience.

Income Statement

Allegiant Travel Company shows mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is 26.5%, reflecting a reasonable level of profitability. However, the net profit margin is negative, indicating losses, which is a concern. Revenue growth is modest, at approximately 1.7% from 2024 to 2025. EBIT and EBITDA margins are weak due to negative EBIT, pointing to operational challenges.

Balance Sheet

The balance sheet of Allegiant Travel Company presents a moderately stable financial position. The debt-to-equity ratio is relatively high at 1.88, suggesting significant leverage. Return on Equity (ROE) is negative due to net losses, which is a downside. However, the equity ratio is 24.7%, showing some level of asset backing by equity.

Cash Flow

The cash flow statement indicates some positive aspects. Free cash flow has grown significantly, showing financial improvement in cash generation. The operating cash flow to net income ratio is positive at 1.75, demonstrating a strong ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio is low, reflecting the challenges in maintaining cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.56B	2.51B	2.51B	2.30B	1.71B	990.07M
Gross Profit	677.12M	1.57B	664.37M	340.47M	231.54M	-4.34M
EBITDA	122.46M	60.86M	490.24M	305.57M	446.06M	-128.37M
Net Income	-207.22M	-240.24M	117.60M	2.49M	151.85M	-184.09M
Balance Sheet
Total Assets	4.50B	4.43B	4.86B	4.51B	3.99B	685.30M
Cash, Cash Equivalents and Short-Term Investments	878.60M	781.13M	814.67M	955.10M	1.18B	685.30M
Total Debt	2.09B	2.15B	2.36B	2.21B	1.88B	1.78B
Total Liabilities	3.39B	3.34B	3.53B	3.29B	2.77B	2.56B
Stockholders Equity	1.11B	1.09B	1.33B	1.22B	1.22B	699.40M
Cash Flow
Free Cash Flow	119.29M	38.30M	-447.39M	-131.64M	232.66M	-45.70M
Operating Cash Flow	362.06M	338.46M	423.09M	303.05M	488.20M	234.50M
Investing Cash Flow	-22.74M	5.58M	-721.88M	-491.42M	-593.28M	-365.69M
Financing Cash Flow	-246.80M	-201.30M	212.92M	33.12M	285.47M	164.60M

Allegiant Travel Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.52
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 54.52 is below the 20-day moving average (MA) of 54.57, above the 50-day MA of 54.51, and below the 200-day MA of 67.18, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 48.97 is Neutral, neither overbought nor oversold. The STOCH value of 29.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALGT.

Allegiant Travel Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNCY	77 Outperform	$687.98M	13.23	9.46%	―	2.24%	-20.24%
Sector *	67 Neutral	€8.26B	20.65	6.46%	2.85%	1.85%	-38.87%
VLRS	65 Neutral	$557.19M	13.51	14.19%	―	-7.43%	-62.49%
ULCC	53 Neutral	$947.50M	14.07	12.71%	―	5.99%	―
ALGT	52 Neutral	$995.25M	―	-17.12%	1.10%	1.54%	-466.46%
UP	50 Neutral	$1.05B	―	-2416.94%	―	-29.68%	95.14%
JBLU	47 Neutral	$1.62B	―	-11.30%	―	-3.02%	66.90%

Allegiant Travel Company Corporate Events

Allegiant Travel Sells Sunseeker Resort to Blackstone

On July 3, 2025, Allegiant Travel Company announced an agreement to sell its Sunseeker Resort Charlotte Harbor, Aileron Golf Course, and related properties in Southwest Florida to Blackstone Real Estate Group for $200 million, with the transaction expected to close in September 2025. Additionally, the company borrowed $158.6 million through credit facilities secured by Boeing 737-MAX aircraft to finance aircraft deliveries and manage debt, with $151 million in loan commitments still available.

The most recent analyst rating on (ALGT) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Allegiant Travel Company stock, see the ALGT Stock Forecast page.

Allegiant Travel Confirms Board Election and Key Approvals

On June 26, 2025, Allegiant Travel Company held its Annual Meeting of Stockholders where several key proposals were voted on. The election of an eight-member Board of Directors was confirmed, with Maurice J. Gallagher, Jr. and Gregory Anderson receiving the highest votes. Additionally, the stockholders approved the executive compensation and an amendment to the Company’s 2022 Long-term Incentive Plan. The appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was also ratified.

The most recent analyst rating on (ALGT) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Allegiant Travel Company stock, see the ALGT Stock Forecast page.

Allegiant Secures $144 Million Credit Facility

On June 10, 2025, Allegiant Travel Company secured a credit facility allowing it to borrow up to $144 million, backed by Boeing 737 MAX aircraft. The funds will be used for aircraft purchases, debt repayment, and general corporate purposes, enhancing the company’s financial flexibility.

The most recent analyst rating on (ALGT) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Allegiant Travel Company stock, see the ALGT Stock Forecast page.

Allegiant Travel Appoints Tyler Hollingsworth as COO

Allegiant Travel Company announced the appointment of Tyler Hollingsworth as the chief operating officer, effective May 1, 2025, following his interim role since March 2025. Hollingsworth has been with the company since 2010, holding various leadership roles in flight operations and safety. The company also reported strong financial results for the first quarter of 2025, with a notable increase in operating margin and earnings per share despite economic uncertainties impacting the airline industry. Allegiant has adjusted its capacity growth plans to maintain profitability amid volatile demand, demonstrating resilience in challenging market conditions.