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Allegiant Travel Company
(NASDAQ:ALGT)
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Rating:55Neutral
Price Target:
$113.00
▲(23.11% Upside)
Action:Reiterated
Date:06/27/26
ALGT scores in the mid-range primarily due to mixed financial performance: improving cash flow is a key support, but earnings volatility and elevated leverage remain material risks. Technicals are constructive with strong trend and momentum, though overbought signals raise near-term pullback risk. Valuation is a clear कमजोरी due to a negative P/E, while the earnings call adds moderate support on operational execution and strategic synergies but is tempered by fuel-driven near-term loss guidance.
Positive Factors
Improving cash generation and positive FCF
Sustained improvement in operating cash flow and a meaningful TTM free cash flow position provide a durable internal funding source. This strengthens the company's ability to fund fleet deliveries, absorb cyclical demand swings, invest in growth or de-lever without recurring reliance on equity markets, improving long-term financial resilience.
Negative Factors
Elevated leverage and secured debt profile
Above-average leverage for a cyclical airline constrains financial flexibility during downturns and raises interest and covenant risk. New secured notes extend maturities but overlap collateral and increase fixed obligations; this makes sustained deleveraging essential before cyclical stress or weaker demand could pressure liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation and positive FCF
Sustained improvement in operating cash flow and a meaningful TTM free cash flow position provide a durable internal funding source. This strengthens the company's ability to fund fleet deliveries, absorb cyclical demand swings, invest in growth or de-lever without recurring reliance on equity markets, improving long-term financial resilience.
Read all positive factors
Allegiant Travel Company (ALGT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.12B
Dividend YieldN/A
Average Volume (3M)648.87K
Price to Earnings (P/E)―
Beta (1Y)1.59
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. Volume602,372
30 Day Avg. Volume648,869
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 Cap1.06
Enterprise Value/Revenue1.26
Enterprise Value/Gross Profit4.08
Enterprise Value/Ebitda9.77
Forecast
1Y Price Target
$119.00Price Target Upside29.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)4.16
Revenue Forecast (FY)$2.85B
Allegiant Travel Company Business Overview & Revenue Model
Company Description
Allegiant Travel Company, founded in 1997 and headquartered in Las Vegas, Nevada, operates as a leisure travel provider primarily catering to residents in smaller, under-served cities across the United States. The company specializes in offering d...
How the Company Makes Money
Allegiant primarily makes money through (1) passenger ticket revenue and (2) a large portfolio of ancillary revenues tied to its ultra-low-cost carrier model. Ticket revenue comes from selling seats on scheduled flights, typically priced to stimul...
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 | 340.03M | 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
85.58
Positive
88.58
Positive
81.23
Positive
Market Momentum
7.19
Negative
77.17
Negative
92.90
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 91.79 is below the 20-day moving average (MA) of 93.69, above the 50-day MA of 85.58, and above the 200-day MA of 81.23, indicating a bullish trend. The MACD of 7.19 indicates Negative momentum. The RSI at 77.17 is Negative, neither overbought nor oversold. The STOCH value of 92.90 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 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 | $3.94B | 9.30 | 16.00% | ― | 12.26% | 18.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $3.12B | -58.34 | -3.25% | ― | 3.31% | 82.72% | |
50 Neutral | $2.23B | -3.09 | -33.13% | ― | -0.52% | -138.22% | |
48 Neutral | $1.80B | -4.88 | -88.57% | ― | -0.47% | -632.83% | |
44 Neutral | $1.01B | ― | -50.21% | ― | 4.23% | -405.62% |
* Industrials Sector Average
ALGT
Allegiant Travel Company
116.10
61.15
111.28%
JBLU
JetBlue Airways
6.00
1.77
41.84%
SKYW
SkyWest
99.31
-3.66
-3.55%
VLRS
Controladora Vuela Compania de Aviacion SAB de CV
9.39
4.64
97.68%
ULCC
Frontier Group Holdings
7.85
4.22
116.25%
Allegiant Travel Company Corporate Events
Executive/Board ChangesShareholder Meetings
Allegiant Travel shareholders back board, pay and auditor
Positive
Jun 26, 2026
At Allegiant Travel Company’s 2026 Annual Meeting of Stockholders held on June 25, 2026, shareholders elected an 11-member board of directors, with each nominee receiving strong support despite a modest number of withheld votes and over one ...
Business Operations and StrategyPrivate Placements and Financing
Allegiant Travel Upsizes 2031 Senior Secured Notes Offering
Positive
Jun 10, 2026
On June 9, 2026, Allegiant Travel Company announced it had priced an upsized private offering of $650 million in 7.125% senior secured notes due 2031 at 99.479% of par, increasing the deal by $150 million from its earlier $500 million plan. The no...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Allegiant Launches $500 Million Notes Offering, Refinances Debt
Positive
Jun 9, 2026
Allegiant Travel Company has completed the acquisition of Sun Country Airlines Holdings, Inc. through a two-step merger completed on May 13, 2026, making Sun Country a wholly owned subsidiary via reorganized merger entities. The company has prepar...
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’...
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.