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Allegiant Travel Company (ALGT)
NASDAQ:ALGT
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Allegiant Travel Company (ALGT) AI Stock Analysis

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ALGT

Allegiant Travel Company

(NASDAQ:ALGT)

Rating:54Neutral
Price Target:
$58.00
▼(-6.51% Downside)
Allegiant Travel Company's stock score reflects significant operational and financial challenges, including high leverage and negative profitability. However, positive operational achievements and strategic financial moves, such as securing a credit facility, provide some optimism. Technical indicators suggest caution, while valuation metrics highlight current financial difficulties.
Positive Factors
Financial Performance
ALGT reported adjusted EPS well above expectations, driven by better than expected performance.
Fleet Management
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.
Operational Focus
With the sale of the Sunseeker Resort expected to close, ALGT's focus shifts back to its core airline business, simplifying its operations.
Negative Factors
Earnings Forecast
Forecasts for ALGT earnings are below consensus, suggesting weaker performance expectations.
Pilot Costs
Sale proceeds may not cover accrued pilot pay, indicating financial strain.
Sale Proceeds
The announced sale of Sunseeker is below the estimated value, leading to shares underperforming the group.

Allegiant Travel Company (ALGT) vs. SPDR S&P 500 ETF (SPY)

Allegiant Travel Company Business Overview & Revenue Model

Company DescriptionAllegiant 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 MoneyAllegiant 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 Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: 27.68%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlights Allegiant's strong operational performance and strategic initiatives that are expected to drive future growth, such as increased utilization of MAX aircraft and favorable passenger numbers. However, this is counterbalanced by challenges including a decline in TRASM, softer domestic leisure demand, and expected third quarter losses, primarily attributed to seasonal weakness and Sunseeker Resort issues.
Q2-2025 Updates
Positive Updates
Record Passenger Numbers
Allegiant flew more than 5 million passengers in the second quarter, a record for this period.
High Operating Margin
Achieved an airline operating margin of 8.6%, exceeding initial guidance, with a first half operating margin close to 9%, an improvement over the first half of 2024.
Increased Aircraft Utilization
Aircraft utilization increased by 17% in the first half compared to the previous year, while maintaining flat total aircraft and personnel.
New MAX Aircraft Performance
The new MAX aircraft are boosting performance, leading in reliability, and contributing a significant margin advantage compared to older A320 aircraft.
Award Recognition
Allegiant was named Skytrax Best Low-Cost Carrier in North America for the second consecutive year.
Negative Updates
TRASM Decline
Total Revenue per Available Seat Mile (TRASM) declined by 11.2% year-over-year.
Domestic Leisure Demand Softness
Domestic leisure demand was softer than anticipated during the first half of the year.
Expected Third Quarter Operating Loss
The company expects to incur an operating loss in the third quarter, traditionally its weakest period for leisure demand.
Sunseeker Resort Losses
Sunseeker Resort incurred losses, with special charges of $103 million related to its pending sale.
Company Guidance
During Allegiant Travel Company's Second Quarter 2025 Earnings Call, significant metrics and strategic guidance were shared. The company reported an airline operating margin of 8.6%, surpassing initial expectations, and a record of flying over 5 million passengers with approximately 70% being repeat customers, highlighting strong Net Promoter Scores. Capacity plans were adjusted with a 16% growth in total ASM and a 17% increase in aircraft utilization, maintaining flat aircraft and personnel counts. Despite softer domestic leisure demand, Allegiant achieved solid profitability due to its low-cost structure and focus on value. The new MAX aircraft, comprising roughly 10% of ASMs, are expected to exceed 15% by year-end, providing a significant margin advantage. Looking ahead, capacity growth expectations have been reduced, with September ASMs expected to be flat year-over-year, and an operating loss anticipated in the third quarter. However, a healthy operating profit is expected for the full year, with improvements anticipated in the fourth quarter as leisure travel typically increases. For 2026, capacity is expected to remain flat, focusing on incremental revenue through commercial initiatives, including the Allegiant Extra product and the Allegiant credit card, with the latter expected to grow from $140 million this year. The company plans to divest some Airbus aircraft and increase the usage of MAX aircraft, which are projected to account for over 20% of ASMs in 2026, with a continued emphasis on cost control.

Allegiant Travel Company Financial Statement Overview

Summary
Allegiant Travel Company faces operational and profitability challenges, with mixed outcomes across its financial statements. The income statement shows losses, the balance sheet reveals high leverage, and cash flow improvements suggest some resilience. Continued focus on improving profitability and managing leverage will be crucial.
Income Statement
40
Negative
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
50
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.56B2.51B2.51B2.30B1.71B990.07M
Gross Profit677.12M1.57B664.37M340.47M231.54M-4.34M
EBITDA115.98M60.86M490.24M305.57M446.06M-128.37M
Net Income-207.22M-240.24M117.60M2.49M151.85M-184.09M
Balance Sheet
Total Assets4.50B4.43B4.86B4.51B3.99B685.30M
Cash, Cash Equivalents and Short-Term Investments878.60M781.13M814.67M955.10M1.18B685.30M
Total Debt2.09B2.15B2.36B2.21B1.88B1.78B
Total Liabilities3.39B3.34B3.53B3.29B2.77B2.56B
Stockholders Equity1.11B1.09B1.33B1.22B1.22B699.40M
Cash Flow
Free Cash Flow119.29M38.30M-447.39M-131.64M232.66M-45.70M
Operating Cash Flow362.06M338.46M423.09M303.05M488.20M234.50M
Investing Cash Flow-22.74M5.58M-721.88M-491.42M-593.28M-365.69M
Financing Cash Flow-246.80M-201.30M212.92M33.12M285.47M164.60M

Allegiant Travel Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price62.04
Price Trends
50DMA
54.06
Positive
100DMA
52.60
Positive
200DMA
66.36
Negative
Market Momentum
MACD
2.01
Negative
RSI
64.51
Neutral
STOCH
87.18
Negative
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 62.04 is above the 20-day moving average (MA) of 54.60, above the 50-day MA of 54.06, and below the 200-day MA of 66.36, indicating a neutral trend. The MACD of 2.01 indicates Negative momentum. The RSI at 64.51 is Neutral, neither overbought nor oversold. The STOCH value of 87.18 is Negative, 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 30 risk factors in its most recent earnings report. Allegiant Travel Company reported the most risks in the "Production" 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$663.79M11.7010.15%3.76%17.44%
65
Neutral
$695.02M12.09-12.00%-7.05%-128.03%
64
Neutral
$10.95B16.108.81%1.99%2.59%-16.41%
54
Neutral
$1.67B-2416.94%-20.21%88.09%
54
Neutral
$1.09B-24.02%1.25%3.17%-1689.03%
52
Neutral
$1.91B-15.12%-1.90%61.06%
47
Neutral
$1.11B13.43-6.63%4.60%49.81%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ALGT
Allegiant Travel Company
62.04
20.32
48.71%
JBLU
JetBlue Airways
5.32
0.45
9.24%
VLRS
Controladora Vuela Compania de Aviacion SAB de CV
6.11
0.32
5.53%
UP
Wheels Up Experience
3.00
1.14
61.29%
SNCY
Sun Country Airlines Holdings
12.82
2.20
20.72%
ULCC
Frontier Group Holdings
4.85
1.42
41.40%

Allegiant Travel Company Corporate Events

Business Operations and StrategyFinancial Disclosures
Allegiant Travel Reports Q2 2025 Financial Results
Neutral
Aug 4, 2025

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.

Private Placements and FinancingM&A Transactions
Allegiant Travel Sells Sunseeker Resort to Blackstone
Neutral
Jul 8, 2025

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.

Executive/Board ChangesShareholder Meetings
Allegiant Travel Confirms Board Election and Key Approvals
Neutral
Jun 27, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Allegiant Secures $144 Million Credit Facility
Positive
Jun 16, 2025

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.

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.Date of analysis: Aug 13, 2025