Allegiant Travel Company (ALGT)
NASDAQ:ALGT
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Allegiant Travel Company
(NASDAQ:ALGT)
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Rating:54Neutral
Price Target:
$79.00
▼(-13.93% Downside)
Action:Reiterated
Date:05/14/26
Overall score reflects (1) constrained financial quality from recent losses and elevated leverage despite improving cash generation, (2) weak technical momentum with the stock below key moving averages, partially offset by (3) a low P/E valuation and (4) an earnings call that balanced strong Q1 execution against fuel-driven guidance headwinds and near-term profit pressure.
Positive Factors
Ancillary & commercial revenue growth
Higher-margin ancillary revenue and commercial relationships create durable, fuel-agnostic cash flow. A large co‑brand card base and a 20% rise in third‑party revenue per passenger diversify earnings, boost unit economics, and support margins even if ticket volumes fluctuate seasonally.
Negative Factors
Elevated leverage
Above‑average leverage in a cyclical airline constrains strategic flexibility and raises refinancing and covenant risk during demand or fuel shocks. Persistent debt levels limit capacity to invest or absorb integration costs without maintaining consistent cash generation or cutting returns to creditors.
Read all positive and negative factors
Positive Factors
Negative Factors
Ancillary & commercial revenue growth
Higher-margin ancillary revenue and commercial relationships create durable, fuel-agnostic cash flow. A large co‑brand card base and a 20% rise in third‑party revenue per passenger diversify earnings, boost unit economics, and support margins even if ticket volumes fluctuate seasonally.
Read all positive factors
Allegiant Travel Company (ALGT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.01B
Dividend YieldN/A
Average Volume (3M)464.63K
Price to Earnings (P/E)8.7
Beta (1Y)1.56
Revenue Growth3.31%
EPS Growth82.72%
CountryUS
Employees6,057
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)-1.99
Shares Outstanding26,875,677
10 Day Avg. Volume498,171
30 Day Avg. Volume464,630
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 Cap1.47
Enterprise Value/Revenue1.12
Enterprise Value/Gross Profit3.62
Enterprise Value/Ebitda9.06
Forecast
1Y Price Target
$100.20Price Target Upside9.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)4.02
Revenue Forecast (FY)$2.83B
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...
How the Company Makes Money
Allegiant primarily makes money through (1) base airfares and (2) ancillary revenue tied to its passenger airline operations. Base airfare revenue comes from selling seats on scheduled flights, generally focused on price-sensitive leisure traveler...
Allegiant Travel Company Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlights strong underlying operating performance: record revenue and TRASM, industry-leading adjusted operating margin, outstanding operational reliability, a healthy balance sheet, commercial momentum (co-brand card and Allegiant Extra), and progress on the Sun Country acquisition. However, near-term headwinds from sharply higher and volatile jet fuel prices materially pressure second-quarter profitability, have prompted a ~6.5% ASM reduction for Q2 and raise uncertainty around some network and synergy timing. Overall, the company presents resilient fundamentals and strategic levers to manage the environment but acknowledges meaningful short-term fuel-driven earnings pressure.Positive Updates
Record Revenue and Strong Unit Revenue (TRASM)
Total revenue of $732.4M in Q1, up 9.6% year over year; first quarter TRASM of 14.31¢, up 16.4% YoY. Company reported both total revenue and TRASM as first-quarter records and the strongest quarterly performance in its history (revenue ~7% higher than any prior quarter).
Negative Updates
Sharp Rise in Jet Fuel Costs
Fuel averaged $3.04/gal in Q1 versus initial guide $2.60/gal; crack spreads spiked to ~$1.70/gal in early April then moderated to ~$1.20 but remain roughly twice pre-conflict levels (~$0.60). Management assumes $4.35/gal for Q2, driving nearly $120M of incremental operating expense versus prior expectations.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue and Strong Unit Revenue (TRASM)
Total revenue of $732.4M in Q1, up 9.6% year over year; first quarter TRASM of 14.31¢, up 16.4% YoY. Company reported both total revenue and TRASM as first-quarter records and the strongest quarterly performance in its history (revenue ~7% higher than any prior quarter).
Read all positive updates
Company Guidance
Allegiant’s guidance for Q2 (stand‑alone) calls for ASMs down roughly 6.5% year‑over‑year, with management expecting TRASM to be up sequentially and year‑over‑year unit revenue growth to exceed the 16.4% Y/Y TRASM gain delivered in Q1 (Q1 TRASM was 14.31¢); at the midpoint of the Q2 range the company expects an operating margin of ~1% and a loss per share of about $0.50, based on an assumed jet fuel price of $4.35/gal (which they say drives roughly $120M of incremental operating expense versus prior expectations). They warned Q2 CASM ex will be the most elevated of the year (Q1 non‑fuel unit costs were 8.64¢, up 7.1% Y/Y; Q1 fuel averaged $3.04/gal; ASMs per gallon were 86.7, +1.2% Y/Y) but reiterated full‑year CapEx guidance (Q1 CapEx $176M, including $155M aircraft) and highlighted a strong liquidity and balance sheet position entering Q2 ($1.2B total liquidity, $933.5M cash & investments, $250M undrawn revolver; total debt ~$1.8B; net debt $858M; net leverage ~1.8x), noting the Q2 guide is standalone ahead of the expected Sun Country close in mid‑May and that the combined company expects $140M of run‑rate synergies post‑close.Allegiant Travel Company Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
44
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.64B | 2.61B | 2.51B | 2.51B | 2.30B | 1.71B |
| Gross Profit | 815.04M | 400.67M | 1.57B | 664.37M | 340.47M | 231.54M |
| EBITDA | 325.88M | 326.94M | 60.86M | 490.24M | 305.57M | 446.13M |
| Net Income | -34.32M | -44.70M | -240.24M | 117.60M | 2.49M | 151.85M |
Balance Sheet | ||||||
| Total Assets | 4.41B | 4.21B | 4.55B | 4.92B | 4.51B | 4.01B |
| Cash, Cash Equivalents and Short-Term Investments | 902.16M | 805.65M | 797.55M | 831.00M | 955.05M | 1.22B |
| Total Debt | 1.85B | 1.86B | 2.15B | 2.36B | 2.21B | 1.88B |
| Total Liabilities | 3.32B | 3.16B | 3.46B | 3.59B | 3.29B | 2.79B |
| Stockholders Equity | 1.10B | 1.05B | 1.09B | 1.33B | 1.22B | 1.22B |
Cash Flow | ||||||
| Free Cash Flow | 180.81M | 75.10M | 38.30M | -447.39M | -131.64M | 294.58M |
| Operating Cash Flow | 466.42M | 389.77M | 338.46M | 423.09M | 303.05M | 538.19M |
| Investing Cash Flow | -243.81M | -220.43M | 5.58M | -721.88M | -491.42M | -593.28M |
| Financing Cash Flow | -220.83M | -280.90M | -201.30M | 212.92M | 33.12M | 285.47M |
Allegiant Travel Company Technical Analysis
Positive
91.79
Price Trends
91.25
Positive
88.36
Positive
74.12
Positive
Market Momentum
0.42
Negative
58.08
Neutral
58.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALGT, the sentiment is Positive. The current price of 91.79 is above the 20-day moving average (MA) of 83.74, above the 50-day MA of 91.25, and above the 200-day MA of 74.12, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 58.08 is Neutral, neither overbought nor oversold. The STOCH value of 58.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALGT.
Allegiant Travel Company Risk Analysis
Allegiant Travel Company disclosed 41 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.22B | 9.03 | 16.00% | ― | 12.26% | 18.57% | |
65 Neutral | $876.36M | 9.24 | 6.44% | ― | 4.36% | -25.89% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $2.01B | 8.68 | -3.25% | ― | 3.31% | 82.72% | |
50 Neutral | $1.09B | -0.74 | -88.57% | ― | -0.47% | -632.83% | |
49 Neutral | $765.02M | -2.93 | -50.21% | ― | 4.23% | -405.62% | |
46 Neutral | $1.70B | -1.28 | -33.13% | ― | -0.52% | -138.22% |
* Industrials Sector Average
ALGT
Allegiant Travel Company
74.90
19.79
35.91%
JBLU
JetBlue Airways
4.58
-0.36
-7.29%
SKYW
SkyWest
81.25
-20.60
-20.23%
VLRS
Controladora Vuela Compania de Aviacion SAB de CV
6.53
2.35
56.22%
SNCY
Sun Country Airlines Holdings
16.17
4.12
34.19%
ULCC
Frontier Group Holdings
4.75
0.74
18.45%
Allegiant Travel Company Corporate Events
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...
Business Operations and StrategyM&A TransactionsShareholder Meetings
Allegiant Shareholders Approve Stock Issuance for Sun Country Merger
Positive
May 8, 2026
On January 11, 2026, Allegiant Travel Company agreed to merge Sun Country Airlines Holdings into its structure through a two-step transaction, first combining Sun Country with a wholly owned Allegiant subsidiary and then folding the surviving enti...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Allegiant Travel Posts Strong Q1 Results, Signals Confident Outlook
Positive
Apr 30, 2026
In late April 2026, Allegiant Travel Company arranged two aircraft-backed credit facilities totaling up to $291 million, including a fully drawn $115 million loan maturing in April 2029 and a separate $176 million facility tied to newly delivered ...
Business Operations and StrategyLegal ProceedingsM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Allegiant Issues Supplemental Disclosures Ahead of Sun Country Merger
Neutral
Apr 28, 2026
Allegiant Travel Company is a Nevada-based airline operator focused on low-cost leisure travel, while Sun Country Airlines Holdings is a U.S. airline serving both passenger and charter markets. The planned combination would create a larger budget-...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Allegiant Details Post-Merger Board After Sun Country Deal
Positive
Apr 20, 2026
On April 20, 2026, Allegiant Travel Company detailed the future composition of its board of directors following its planned acquisition of Sun Country Airlines, first announced on January 11, 2026 and expected to close as early as May 13, 2026. Al...
Business Operations and StrategyM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Allegiant Wins DOT Approval for Sun Country Acquisition
Positive
Apr 15, 2026
On April 15, 2026, Allegiant Travel Company and Sun Country Airlines said the U.S. Department of Transportation granted an interim exemption allowing both airlines to keep operating as separate carriers under common ownership after Allegiant’...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Allegiant Lifts Q1 Outlook Ahead of Investor Conference
Positive
Mar 17, 2026
Allegiant Travel Company, a U.S. leisure-focused low-cost airline, concentrates on connecting underserved cities to vacation destinations and supplements fare income with ancillary travel revenues aimed at value-oriented leisure passengers. Its mo...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Allegiant Advances Sun Country Acquisition After Antitrust Clearance
Positive
Mar 16, 2026
On March 16, 2026, Allegiant Travel Company and Sun Country Airlines announced that U.S. antitrust regulators granted early termination of the Hart-Scott-Rodino waiting period for Allegiant’s proposed acquisition of Sun Country. This clearan...
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.