Allegiant Travel Company

What they do

Allegiant Air sells unbundled, nonstop leisure travel between smaller markets and vacation destinations, supplemented by third-party products such as cobrand credit cards and, for Sun Country, cargo operations. As of June 30, 2026, the fleet included 171 aircraft in passenger service, 22 Boeing 737-800s in cargo service, and three aircraft held for operating lease. The company also owns the Sunseeker resort, which incurred special charges in 2025.

Revenue drivers

• Allegiant Air passenger revenue — Core leisure airline revenue; Allegiant Air operating revenue was $776.2 million in Q2 2026, 82 percent of the $943.5 million consolidated total.
• Sun Country — Added via the May 13, 2026 acquisition; results are included only from the closing date, contributing to consolidated revenue of $943.5 million versus $689.4 million a year earlier.
• Third-party products — Cobrand credit card remuneration and other products; consolidated third-party revenue was $45.8 million in Q2 2026, with $44.5 million at Allegiant Air, up 32.2 percent year over year.
• Cargo and leasing — 22 Boeing 737-800s in cargo service plus three aircraft held for operating lease as of June 30, 2026, following the Sun Country acquisition.

Recent performance

Second quarter 2026 consolidated operating revenue was $943.5 million versus $689.4 million in the prior-year quarter, a 36.9 percent increase that includes Sun Country only from May 13, 2026. Consolidated operating income was $21.1 million compared with a $67.5 million loss a year earlier, and net loss was $4.9 million, or $(0.21) per diluted share. Adjusted diluted EPS was $2.19, up 78.0 percent year over year. Standalone Allegiant Air revenue rose 16.1 percent to $776.2 million on 6.8 percent less capacity, with TRASM up 24.6 percent. Full-year 2025 results were a $44.7 million net loss on $2.32 billion of revenue.

Strategy

Management is integrating Sun Country and targets at least $140 million in annual run-rate synergies within three years of close. It is expanding distribution through a July 2026 12-month exclusive agreement with Expedia Group, Allegiant's first authorized online travel agency partner. It is also adding product tiers, including complimentary inflight beverages from August 1, 2026 and the Allegiant First premium seating tier debuting on select aircraft in spring 2027. Fleet transition continues toward Boeing 737 MAX aircraft, with ageing Airbus airframes retired and 30 aircraft under forward purchase agreements for delivery between 2026 and 2028.

Risks

• Integration execution — Sun Country results are included only from the May 13, 2026 close, so the company must integrate operations to reach its stated $140 million annual run-rate synergy target.
• Fuel cost volatility — Management cited materially higher fuel costs in Q2 2026 and said it will trim off-peak flying given continued fuel volatility.
• Leverage and refinancing — As of June 30, 2026, long-term debt was $2.46 billion against $1.78 billion of shareholder equity and $508.7 million of cash; the company refinanced $377.5 million of notes due 2027 with $650.0 million of new notes due 2031.
• Special charges — Q2 2026 included $66.0 million of airline special charges, and accelerated depreciation on retired Airbus airframes continues, with seven additional retirements scheduled between July 2026 and January 2027.

Outlook

Management guided to combined-company third-quarter 2026 unit revenue growth approximately in line with the 24.6 percent increase at standalone Allegiant in Q2 2026. It introduced full-year 2026 combined-company adjusted EPS guidance of more than $6.00, reflecting Sun Country and current fuel prices. It said leisure demand remains strong and that it will continue trimming off-peak flying while preserving the peak-period schedule.