olivLaw · US equity research
Allegiant Travel Company ALGT
Air Transportation, Scheduled · SIC 4512 · Vertical: Air Transportation, Scheduled (SIC 4512)
Allegiant Travel Company, also known as Allegiant Air, runs a leisure airline with nonstop routes linking under-served small and medium-sized US cities to vacation destinations. In 2026 it completed its acquisition of Sun Country Airlines, and consolidated revenue reached a record quarterly level of 943.5 million dollars in the second quarter.
At the close of 02 Nov 2026, Allegiant Travel Company (ALGT) stock was 76.58 USD (+7.35% on the day), with market capitalisation 2.1 bn USD, P/E 53.3 on diluted EPS of 1.44 USD over the last 12 months, dividend yield 0.00%, beta 2.03, 52-week range 58.03–119.16 USD. Latest reported quarter (Q2 2026): revenue of 943.5 m USD (+36.9% YoY), net income of -4.9 m USD, diluted EPS -0.21 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 56.0
- strong (55–70)
- Bollinger (20, 2)
- 64.74 – 78.91
- in the upper half of the band · %B 0.84 · band width 19.7%
- SMA 50 / 200
- 75.44 / 87.47
- mixed trend
- MACD (12, 26, 9)
- -1.07 / -1.99
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −1.3% | −2.3% | +1.0 pp | — |
| 3 months | −26.0% | −0.8% | −25.2 pp | — |
| 6 months | +6.4% | +4.7% | +1.7 pp | — |
| Year to date | −10.2% | +10.2% | −20.4 pp | — |
| 1 year | +23.2% | +10.3% | +12.9 pp | −4.4% |
| 3 years | +18.2% | +73.0% | −54.9 pp | +71.9% |
| 5 years | −58.5% | +61.8% | −120.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 562.2 m | 627.7 m | 699.1 m | 689.4 m | 561.9 m | 656.2 m | 732.4 m | 943.5 m |
| Operating income | -26.3 m | -264.0 m | 65.0 m | -67.5 m | -27.2 m | 66.8 m | 81.1 m | 21.1 m |
| Depreciation & amortisation | 63.9 m | 65.1 m | 63.3 m | 68.5 m | 59.0 m | 58.4 m | 57.9 m | 70.7 m |
| Interest expense | 39.1 m | 37.7 m | 40.8 m | 35.8 m | 38.1 m | 35.6 m | — | 40.1 m |
| Pre-tax income | -43.4 m | -281.7 m | 41.9 m | -88.6 m | -52.2 m | 43.9 m | 66.0 m | -5.2 m |
| Income tax | -6.7 m | -65.5 m | 9.8 m | -23.4 m | -8.6 m | 12.0 m | 23.5 m | -360.0 k |
| Net income | -36.8 m | -216.2 m | 32.1 m | -65.2 m | -43.6 m | 31.9 m | 42.5 m | -4.9 m |
| Diluted EPS | -2.05 | -12.01 ≈ | 1.73 | -3.62 | -2.41 | 1.76 ≈ | 2.30 | -0.21 |
| Operating cash flow | 17.3 m ≈ | 84.4 m | 191.4 m | 92.2 m ≈ | -6.1 m ≈ | 112.2 m | 268.1 m | 46.1 m ≈ |
| Capex | 41.8 m | 60.3 m | 74.5 m | 138.8 m | 129.3 m | 21.8 m | 45.4 m | 120.7 m ≈ |
| Dividends paid | 1.0 k ≈ | -1.0 k | 0 | 0 ≈ | 0 ≈ | 0 | — | — |
| Share repurchases | 2.1 m ≈ | 886.0 k | 11.1 m | 350.0 k ≈ | 1.5 m ≈ | 632.0 k | 55.0 k | 783.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 88 percentile of its own 26-quarter history (min 8.2, median 13.1, max 638.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.7 bn | 1.8 bn | 990.1 m | 1.7 bn | 2.3 bn | 2.5 bn | 2.5 bn | 2.6 bn |
| Revenue YoY | +10.3% | +10.4% | −46.2% | +72.5% | +34.8% | +9.0% | +0.1% | +3.7% |
| Net income | 161.8 m | 232.1 m | -184.1 m | 151.9 m | 2.5 m | 117.6 m | -240.2 m | -44.7 m |
| Net income YoY | −18.3% | +43.5% | −179.3% | unavailable | −98.4% | +4,617.0% | −304.3% | unavailable |
| Diluted EPS | 10.00 | 14.26 | -11.53 | 8.68 | 0.14 | 6.29 | -13.49 | -2.48 |
| Diluted EPS YoY | −17.6% | +42.6% | −180.9% | unavailable | −98.4% | +4,392.9% | −314.5% | unavailable |
| net % | 9.7% | 12.6% | -18.6% | 8.9% | 0.1% | 4.7% | -9.6% | -1.7% |
| Free cash flow | 21.8 m | -64.6 m | -46.5 m | 294.6 m | -131.6 m | -105.2 m | 38.3 m | 75.1 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 172.7 m USD
- Financial debt
- 1.8 bn USD
- Net debt
- 1.6 bn USD
- Equity
- 1.1 bn USD
- Total assets
- 4.2 bn USD
- Debt / equity
- 1.71x
- Current ratio
- 0.95x
- ROE
- -4.2%
- ROA
- -1.0%
- FCF margin
- 2.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 990.1 m | 1.7 bn | 2.3 bn | 2.5 bn | 2.5 bn | 2.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | -281.0 m | 263.1 m | 91.6 m | 221.0 m | -240.0 m | 37.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 176.3 m | 181.0 m | 197.5 m | 223.1 m | 258.3 m | 249.2 m | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | -104.7 m ≈ | 444.1 m ≈ | 289.2 m ≈ | 444.1 m ≈ | 18.3 m ≈ | 286.4 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Interest expense | 61.7 m | 68.5 m | 115.7 m | 153.2 m | 156.4 m | 150.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Pre-tax income | -361.1 m | 196.6 m | 5.0 m | 159.1 m | -308.5 m | -54.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | -177.0 m | 44.8 m | 2.5 m | 41.5 m | -68.2 m | -10.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | -184.1 m | 151.9 m | 2.5 m | 117.6 m | -240.2 m | -44.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | -11.53 | 8.68 | 0.14 | 6.29 | -13.49 | -2.48 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 16.0 m | 17.2 m | 18.0 m | 18.0 m | 17.9 m | 18.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividend per share | 0.70 | 0.00 | 0.00 | 1.20 | 1.20 | 0.00 | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 152.8 m | 363.4 m | 230.0 m | 143.3 m | 285.9 m | 172.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 943.6 m | 1.3 bn | 1.3 bn | 1.0 bn | 991.6 m | 967.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 2.1 bn | 2.3 bn | 2.8 bn | 3.4 bn | 3.1 bn | 2.9 bn | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 3.3 bn | 4.0 bn | 4.5 bn | 4.9 bn | 4.4 bn | 4.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | 34.2 m | 43.6 m | 58.3 m | 54.5 m | 62.1 m | 64.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Short-term debt | 217.2 m | 130.1 m | 152.9 m | 439.9 m | 454.8 m | 118.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | 1.4 bn | 1.6 bn | 1.9 bn | 1.8 bn | 1.6 bn | 1.7 bn | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | 689.3 m | 663.0 m | 869.8 m | 1.2 bn | 1.3 bn | 1.0 bn | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | 2.6 bn | 2.8 bn | 3.3 bn | 3.5 bn | 3.3 bn | 3.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 699.4 m † | 1.2 bn † | 1.2 bn † | 1.3 bn † | 1.1 bn † | 1.1 bn † | SEC (XBRL)· 26 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 234.6 m | 538.2 m | 303.1 m | 423.1 m | 338.5 m | 389.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 281.2 m | 243.6 m | 434.7 m | 528.3 m | 300.2 m | 314.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | -46.5 m ≈ | 294.6 m ≈ | -131.6 m ≈ | -105.2 m ≈ | 38.3 m ≈ | 75.1 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -365.7 m | -593.3 m | -491.4 m | -721.9 m | 5.6 m | -220.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | 164.6 m | 285.5 m | 33.1 m | 212.9 m | -201.3 m | -280.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividends paid | 11.4 m | 0 | 0 | 22.1 m | 21.9 m | 0 | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | 33.8 m | 0 | 29.9 m | 30.1 m | 6.0 m | 13.6 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 34 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
02 Nov 2026Source: olivLaw, closing series
Market cap: 2.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Returns41
- Quality54
- Growth35
- Valuation30
- Balance sheet16
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.00 – 215.20 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)67.84 – 215.20 (Mid 116.31)WACC 6.9% · starting FCFF 223.2 m USD · terminal value share of EV 81%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -5.1%
- Peers: EV/EBITDA0.00 – 22.06 (Mid 3.78)7 companies used · median multiple 6.1x · quartiles 4.8x – 7.4xAAL, CPA, DAL, LUV, RJET, SKYW, UAL
- Peers: P/E12.42 – 21.57 (Mid 13.82)6 companies used · median multiple 9.6x · quartiles 8.6x – 15.0xCPA, DAL, LUV, RJET, SKYW, UAL
- Dividend discount (DDM)unavailable · the base of the ratio is not positive
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 34/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 3.5% | 33 (vs peers) | 11% |
| Net margin · Quality | 0.9% | 42 (vs peers) | 7% |
| FCF conversion · Quality | 396.7% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 4.2% | 35 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 5.9x | 30 (vs peers) | 11% |
| Interest coverage · Balance sheet | 1.0x | 0 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 0.8x | 3 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 53.3x | 13 (vs peers) | 11% |
| EV/EBITDA · Valuation | 11.3x | 22 (vs peers) | 11% |
| FCF yield · Valuation | 4.9% | 62 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 0.1% | 2 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 0.0% | 100 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet16/100 · 3/3 factors with a value
- Growth· partial35/100 · 1/2 factors with a value
- Quality54/100 · 3/3 factors with a value
- Returns41/100 · 2/2 factors with a value
- Valuation30/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Allegiant Travel Co (ALGT). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 2.6 bn USD in 2025; YoY growth 3.7%; net margin 0.9%; ROE 1.8%; net debt/EBITDA 5.9x.
The estimated value range is 12.42–22.06 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 13.82 USD, the price of 76.58 USD leaves a potential of -82.0% (value / price − 1) and a margin of safety of -454.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 34/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 396.7%
- Payout ratio (FCF): 0.0%
What contradicts it
- Net debt / EBITDA: 5.9x
- Interest coverage: 1.0x
- Current ratio: 0.8x
- P/E (TTM): 53.3x
- EV/EBITDA: 11.3x
- Shareholder yield (distributions): 0.1%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y.
Versus the vertical median
Air Transportation, Scheduled (SIC 4512) · same industry (4-digit SIC) · compared with 14 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LTMLATAM Airlines Group S.A. | 25,661.7 bn | 18,042.0 | 141.1% | 10.2% | +11.2% | −7% / unavailable |
| RYAAYRyanair Holdings plc | 57.7 bn | 38.0 | — | — | +3.8% | −19% / +17% |
| DALDelta Air Lines, Inc. | 54.9 bn | 16.7 | 15.9% | 4.6% | +2.8% | +30% / +126% |
| UALUnited Airlines Holdings, Inc. | 35.5 bn | 10.0 | 22.3% | 5.5% | +3.5% | +7% / +177% |
| LUVSouthwest Airlines Co | 21.5 bn | 21.7 | 13.9% | 3.3% | +2.1% | +26% / +72% |
| AALAmerican Airlines Group Inc. | 8.7 bn | — | — | -0.6% | +0.8% | −7% / +5% |
| CPACopa Holdings, S.A. | 5.6 bn | 8.4 | 26.1% | 18.6% | +5.0% | +13% / +48% |
| ALKAlaska Air Group, Inc. | 4.3 bn | — | -4.6% | -1.2% | +21.3% | −11% / +1% |
| SKYWSkywest Inc | 3.1 bn | 7.9 | 15.1% | 9.7% | +15.0% | −20% / +73% |
| ALGTAllegiant Travel Co | 2.1 bn | 53.3 | 1.8% | 0.9% | +3.7% | +23% / +18% |
| ULCCFrontier Group Holdings, Inc. | 1.7 bn | — | -175.4% | -8.9% | −1.4% | +63% / +90% |
| JBLUJetblue Airways Corp | 1.2 bn | — | -55.4% | -10.0% | −2.3% | −31% / −28% |
| RJETRepublic Airways Holdings Inc. | 918.2 m | 9.2 | 7.5% | 4.6% | +13.7% | −2% / +82% |
| FJETStarfighters Space, Inc. | 45.2 m | — | -94.2% | — | unavailable | unavailable / unavailable |
| AZULAzul SA | — | — | — | 0.6% | +10.8% | unavailable / unavailable |
1- and 3-year price returns: for ALGT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 29.84 Total return -61% · Per year -61% | 52.76 Total return -31% · Per year -31% | 79.48 Total return 4% · Per year 4% |
| 3 years | 28.80 Total return -62% · Per year -28% | 57.32 Total return -25% · Per year -9% | 94.83 Total return 24% · Per year 7% |
| 5 years | 27.80 Total return -64% · Per year -18% | 62.27 Total return -19% · Per year -4% | 113.15 Total return 48% · Per year 8% |
- Exit P/E± 14.33
- Net margin± 10.03
- Annual revenue growth± 8.26
- Annual dilution± 0.84
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Allegiant Travel Company, also known as Allegiant Air, runs a leisure airline with nonstop routes linking under-served small and medium-sized US cities to vacation destinations. In 2026 it completed its acquisition of Sun Country Airlines, and consolidated revenue reached a record quarterly level of 943.5 million dollars in the second quarter 3.
SWOT
Strengths
- The model separates base fares from ancillary services, generating high revenue per passenger that can support good margins even when costs rise 13.
- A broad route network where most routes have no nonstop competitor offers protection against direct competition and dependence on a single region 1.
- Loyalty programs and the co-brand credit card provide recurring revenue that grew in 2026 23.
Weaknesses
- The company relies on a variable-capacity model, and weaker demand outside peak periods could affect results 1.
- High consolidated debt and the integration of a large acquisition add pressure on the balance sheet 2.
- The company does not hedge fuel price risk with derivatives, leaving results exposed to price volatility 2.
Opportunities
- If the Sun Country integration succeeds, the combination could lower costs and extend the network across variable demand periods 13.
- More than 1400 identified routes offer room for network growth once new aircraft arrive 1.
- The new online travel agency partnership and premium seating tier could attract new customers and lift ancillary revenue 23.
Threats
Risks
- Sun Country integrationhigh
Integrating two separately certificated airlines, with a single operating certificate not expected until 2028, could bring unforeseen costs and delay realization of synergies 12.
- Fuel price volatilityhigh
The company does not use hedging instruments, so fuel price increases affect costs and profitability directly 2.
- High leveragemedium
High consolidated debt limits financial flexibility and could raise refinancing costs 2.
- Seasonal demandmedium
The model depends on peak-period demand, and a drop in demand could weigh on results 1.
- Aircraft deliverieslow
Delays in Boeing aircraft deliveries could limit capacity growth after 2026 1.
Investment thesis
What would need to be true (bull case)
- If the Sun Country synergies materialize, the combination could strengthen the company's position in US leisure travel 13.
- Growth in ancillary revenue and co-brand card remuneration could support margins even as costs rise 23.
- The wider network and new partnerships could bring new customers and support growth in the coming years 2.
What would break the thesis
What to watch
- Progress of the Sun Country integration and delivery of announced synergies2027
- Fuel cost trends and adjusted operating marginQ3 2026
- Launch of the Allegiant First premium tier and its effect on ancillary revenuespring 2027
- Receipt of the single operating certificate for the combined airline2028
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Allegiant is a leisure air transportation company serving primarily under-served cities in the United States with limited-frequency nonstop flights to popular leisure destinations 1. Its model separates base fares from ancillary services such as bags, seat selection and travel protection, and ancillary revenue per passenger rose from 5.87 dollars in 2004 to 76.35 dollars in 2025 1. The company sells directly to travelers through its own eCommerce platform, its loyalty program and its co-brand credit card 1. Total operating revenues for fiscal 2025 were 2606.6 million dollars 1.
Segments
Scheduled passenger air transportation
Scheduled service provides limited-frequency nonstop flights between under-served cities and leisure destinations. As of February 1, 2026 the company was selling travel on 578 routes to 126 cities, with an operating fleet of 16 Boeing 737 and 106 Airbus A320 series aircraft 1.
Ancillary services and third-party products
Ancillary revenue covers bags, seat assignments, change fees, priority boarding and onboard purchases, while third-party products include hotel rooms, rental cars and travel insurance 1. The company received 139.6 million dollars from Bank of America in co-brand card remuneration in 2025 1. In the second quarter of 2026, Allegiant Air third-party products revenue rose 32.2 percent year over year, driven by co-brand card remuneration 3.
Market context
The target market is leisure travel from small and medium-sized cities, where major carriers have reduced service and direct competition is limited, since over 75 percent of routes have no nonstop competitor 1. Demand in the first half of 2026 remained strong even as fuel prices rose sharply after hostilities in the Middle East escalated 2. Capacity growth is constrained by aircraft availability and crew staffing, and the company is relying on the more than 1400 identified routes for network expansion 1.
Trends
- Sun Country Airlines acquisitionmixed
The acquisition closed on May 13, 2026 and integration is underway, with a single operating certificate expected in 2028, which could limit how far operations are combined until then 23. If the announced synergies materialize, the combination could broaden the network and capacity flexibility 13.
- Fuel pricesheadwind
Fuel cost per gallon in the second quarter of 2026 was 71.1 percent higher than in the second quarter of 2025, and the company does not use financial derivatives to hedge 2. If geopolitical tensions persist, cost pressure could weigh on margins.
- Leisure travel demandtailwind
Leisure demand stayed robust in the first half of 2026, and the company trimmed capacity on off-peak days, which lifted load factor 2. Demand could again be affected by macroeconomic or geopolitical events 2.
- New pilot labor agreementmixed
A new collective bargaining agreement with the pilots, ratified in July 2026 with nearly 80 percent of votes in favor, ends a long negotiation, while the accrued retention bonus has been a cost burden until ratification 21.
Competitive position
The company competes mainly on routes without nonstop alternatives, where direct competition is limited because its strategy avoids the crowded high-traffic corridors 1. It states it is not hostile to legacy carriers that connect small cities through hubs, nor to low-cost carriers focused on larger markets 1. Sun Country, acquired in 2026, was also a direct competitor in leisure markets 1.
- Sun Country Airlines
airline based mainly at Minneapolis-Saint Paul, acquired by Allegiant in May 2026 2
- Spirit Airlines
low-cost airline used by Allegiant as a reference for cost comparison 1
- Frontier Airlines
low-cost airline used by Allegiant as a reference for cost comparison 1
- Southwest Airlines
US low-cost airline used by Allegiant as a reference for cost comparison 1
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Allegiant Air Cancels All Flights To 4 Destinations: See Full List NowSimple Flying · 27 Oct 2026 · EN
- Allegiant Air Cancels 8 Routes From This City: See Full List NowSimple Flying · 23 Oct 2026 · EN
- Allegiant Air’s Longest Nonstop Routes With The Boeing 737 MAX In 2027Simple Flying · 23 Oct 2026 · EN
- Allegiant Air Cancels 20 Nonstop Florida Routes: See Full List NowSimple Flying · 20 Oct 2026 · EN
- The Real Reason Why Allegiant Air Still Flies To So Many Secondary AirportsSimple Flying · 10 Oct 2026 · EN
- Allegiant Air Launches 7 New Routes In Only 2 Days: See Full List NowSimple Flying · 01 Oct 2026 · EN
- How Allegiant Air Is Building America's Next Leisure GiantSimple Flying · 01 Oct 2026 · EN
- Allegiant Air Launches These 7 New Routes Next Week: See Map NowSimple Flying · 23 Sept 2026 · EN
- Only 36% Full: Allegiant Air's 11 Emptiest Routes Revealed [See Full List & Map]Simple Flying · 22 Sept 2026 · EN
- Allegiant Travel Company (ALGT) Stock Has Upside as Sun Country Merger Synergies BuildYahoo Finance — News · 18 Sept 2026 · EN
- Allegiant Air Launches 11 New Nonstop Routes From Major US Airport: See Full List NowSimple Flying · 13 Sept 2026 · EN
- Allegiant Air Cuts Massive 41 Routes To Florida: See Full List NowSimple Flying · 10 Sept 2026 · EN
- Allegiant Air Just Bought Pilot Pay Parity At The Entry Door While The Exit Door To The Majors Stays Wide OpenSimple Flying · 04 Sept 2026 · EN
- Allegiant Air Cancels Flights To These 35 Airports: See Full List NowSimple Flying · 03 Sept 2026 · EN
- Allegiant Air Cancels Flights To These 11 Airports: See Full List NowSimple Flying · 30 Aug 2026 · EN
SEC filings
- Current report27 Oct 2026Departure or appointment of officers
- Current report23 Oct 2026Material agreement · Departure or appointment of officers
- Current report19 Oct 2026Creation of a direct financial obligation
- Quarterly report10 Aug 2026
- Current report04 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report03 Aug 2026Regulation FD disclosure
- Current report30 Jul 2026Material agreement · Creation of a direct financial obligation
- Current report30 Jun 2026Other events
- Current report29 Jun 2026Material agreement · Creation of a direct financial obligation · Other events · Financial statements and exhibits
- Current report26 Jun 2026Shareholder vote
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Allegiant Travel Company · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Allegiant Travel Company · 10 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Allegiant Travel Company · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.