Allegiant Travel Company (ALGT) AI Stock Analysis

• Market Cap: $1.12B
• Dividend Yield: N/A
• Average Volume (3M): 298.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: 3.17%
• EPS Growth: -1689.03%
• Country: US
• Employees: 6,057
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 1.23
• Shares Outstanding: 18,350,182
• 10 Day Avg. Volume: 294,802
• 30 Day Avg. Volume: 298,497
• PEG Ratio: 0.02
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 43.87
• Enterprise Value/Market Cap: 1.93
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 2.09
• Enterprise Value/Ebitda: 246.97
• 1Y Price Target: $69.13
• Price Target Upside: 13.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 55 Neutral
• Price Target: $63.00 ▲(3.13% Upside)

Allegiant Travel Company's overall stock score reflects a mix of financial challenges and strategic opportunities. The most significant factor is the company's financial performance, which is hindered by profitability and leverage issues. Technical analysis provides mixed signals, while valuation metrics are unattractive due to negative earnings. The earnings call offers some optimism with strategic initiatives and operational improvements, but these are counterbalanced by current market challenges.

Positive Factors

Operational Performance

Record passenger numbers highlight strong demand and effective capacity management, supporting long-term growth and market presence.

Aircraft Utilization

Improved aircraft utilization enhances operational efficiency and reduces per-unit costs, strengthening Allegiant's competitive edge.

New Aircraft Performance

The introduction of MAX aircraft enhances fleet efficiency and cost-effectiveness, providing a durable competitive advantage.

Negative Factors

Profitability Challenges

Negative profitability and high leverage can strain financial health, limiting investment capacity and long-term growth potential.

TRASM Decline

A decline in TRASM indicates pricing pressure and potential revenue challenges, impacting long-term profitability and market positioning.

Sunseeker Resort Losses

Losses from Sunseeker Resort and related charges highlight operational risks and potential financial strain on core business resources.

Allegiant Travel Company Business Overview & Revenue Model

Company Description

Allegiant Travel Company (ALGT) is a United States-based low-cost airline and travel company headquartered in Las Vegas, Nevada. Operating primarily through its subsidiary, Allegiant Air, the company specializes in providing affordable air travel, primarily to leisure destinations across the U.S. Allegiant offers a unique business model that combines scheduled air service with a diverse range of vacation packages, including hotel accommodations, rental cars, and other travel-related services, catering primarily to price-sensitive travelers and families.

How the Company Makes Money

Allegiant Travel Company primarily generates revenue through its airline operations, which include ticket sales and ancillary services. Ticket sales form the bulk of its revenue, driven by a low-cost fare structure aimed at leisure travelers. Ancillary revenues also play a significant role, comprising fees for services such as checked baggage, seat selection, and priority boarding. Additionally, Allegiant earns revenue from vacation packages that bundle flights with accommodations and other travel services, making it appealing to travelers seeking convenience. Strategic partnerships with hotels, car rental companies, and travel agencies further enhance its offerings and contribute to its revenue streams. The company's focus on underserved markets and secondary airports allows for lower operating costs, which supports profitability.

Allegiant Travel Company Financial Statement Overview

Summary

Allegiant Travel Company faces challenges in profitability and leverage, with negative net income and high debt levels. While revenue growth is evident, cost management and profitability need improvement. Cash flow generation is a positive aspect, but free cash flow volatility poses a concern. Overall, the company needs to focus on improving margins and reducing financial risk.

Income Statement

Allegiant Travel Company has experienced fluctuating revenue growth, with a notable increase in the TTM period. However, profitability metrics such as net profit margin and EBIT margin are negative, indicating challenges in maintaining profitability. The gross profit margin has decreased significantly from the previous year, suggesting increased cost pressures.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage, which poses financial risk. The return on equity is negative in the TTM period, reflecting challenges in generating returns for shareholders. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow remains positive, but the free cash flow has shown volatility, with a negative growth rate in the TTM period. The operating cash flow to net income ratio is positive, indicating some level of cash generation efficiency despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.58B	2.51B	2.51B	2.30B	1.71B	990.07M
Gross Profit	1.04B	1.57B	664.37M	340.47M	231.54M	-4.34M
EBITDA	8.75M	60.86M	490.24M	305.57M	446.06M	-128.37M
Net Income	-286.08M	-240.24M	117.60M	2.49M	151.85M	-184.09M
Balance Sheet
Total Assets	4.39B	4.43B	4.86B	4.51B	3.99B	3.26B
Cash, Cash Equivalents and Short-Term Investments	842.82M	781.13M	814.67M	955.10M	1.18B	685.30M
Total Debt	2.03B	2.15B	2.36B	2.21B	1.88B	1.78B
Total Liabilities	3.33B	3.34B	3.53B	3.29B	2.77B	2.56B
Stockholders Equity	1.06B	1.09B	1.33B	1.22B	1.22B	699.40M
Cash Flow
Free Cash Flow	101.75M	38.30M	-447.39M	-131.64M	232.66M	-45.70M
Operating Cash Flow	385.37M	338.46M	423.09M	303.05M	488.20M	234.50M
Investing Cash Flow	-126.51M	5.58M	-721.88M	-491.42M	-593.28M	-365.69M
Financing Cash Flow	-263.09M	-201.30M	212.92M	33.12M	285.47M	164.60M

Allegiant Travel Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.09
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 61.09 is below the 20-day moving average (MA) of 63.78, below the 50-day MA of 62.68, and below the 200-day MA of 61.51, indicating a bearish trend. The MACD of 0.52 indicates Positive momentum. The RSI at 44.48 is Neutral, neither overbought nor oversold. The STOCH value of 14.36 is Positive, 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
SKYW	―	$3.84B	9.69	16.95%	―	20.45%	131.25%
SNCY	―	$565.69M	9.97	9.99%	―	4.27%	28.47%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALGT	―	$1.12B	―	-24.02%	―	3.17%	-1689.03%
VLRS	―	$744.39M	-11.76	-21.54%	―	-6.02%	-132.85%
JBLU	―	$1.50B	―	-19.09%	―	-2.49%	47.88%
ULCC	―	$871.55M	―	-6.63%	―	4.60%	49.81%

Allegiant Travel Company Corporate Events

Allegiant Travel Reduces Debt with $120M Prepayment

On October 15, 2025, Allegiant Travel Company repaid $120 million of its senior secured notes due in August 2027, following a call feature exercised in September 2025. This prepayment, along with other debt repayments, reduced the company’s outstanding debt significantly, reflecting a strategic move to strengthen its financial position by lowering its debt obligations.

The most recent analyst rating on (ALGT) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Allegiant Travel Company stock, see the ALGT Stock Forecast page.

Allegiant Travel Completes $200M Sale to Blackstone

On September 4, 2025, Allegiant Travel Company completed the sale of its Sunseeker Resort at Charlotte Harbor, Aileron Golf Course, and related properties in Southwest Florida to affiliates of Blackstone Real Estate Group for $200 million, after closing adjustments. The proceeds from this transaction are intended to be used by Allegiant to reduce corporate debt and for other general corporate purposes, potentially impacting its financial stability and operational focus.

The most recent analyst rating on (ALGT) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Allegiant Travel Company stock, see the ALGT Stock Forecast page.

Allegiant Travel’s Earnings Call: Achievements and Challenges

The recent earnings call for Allegiant Travel Company presented a mixed sentiment, balancing between positive operational achievements and strategic improvements, while also addressing challenges in demand and specific financial setbacks. The company celebrated record passenger numbers and effective cost management, yet faced hurdles with weaker demand and particular losses.

Allegiant Travel Reports Strong Operational Performance in Q2 2025

Allegiant Travel Company is an integrated travel company primarily operating in the airline industry, known for connecting underserved cities to vacation destinations with low-cost, nonstop flights. In the second quarter of 2025, Allegiant reported a GAAP diluted loss per share of $(3.62), but an adjusted airline-only diluted earnings per share of $1.86, highlighting strong operational performance despite a challenging demand environment. Key financial metrics include a 3.5% increase in total operating revenue to $689.4 million and an adjusted airline-only operating margin of 8.6%. The company also achieved a record number of flights and a 99.9% controllable completion factor, while expanding its network with new routes. Looking ahead, Allegiant is cautiously optimistic about strengthening domestic demand in the second half of the year and plans to continue focusing on cost improvements and digital transformation to enhance customer experience and shareholder value.

Allegiant Travel Reports Q2 2025 Financial Results

Allegiant Travel Company reported its second quarter 2025 financial results, highlighting a GAAP diluted loss per share of $(3.62) and adjusted earnings per share of $1.23. Despite the challenging demand environment, the company achieved a record number of flights and a 99.9% controllable completion factor, which contributed to its operational success. Allegiant’s commercial initiatives and digital transformation efforts are beginning to yield positive outcomes, with improvements in ancillary revenue and cost reductions. The company remains optimistic about strengthening domestic demand in the latter half of the year and plans to continue focusing on core strengths and cost improvements, including the sale of its Sunseeker Resort.

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.