Allegiant Travel (NASDAQ:ALGT) Issues Earnings Results

Allegiant Travel (NASDAQ:ALGT) issued its quarterly earnings results on Tuesday. The transportation company reported $2.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.27 by $0.92, FiscalAI reports. The company had revenue of $943.50 million for the quarter, compared to analysts’ expectations of $982.70 million. Allegiant Travel had a return on equity of 12.76% and a net margin of 0.90%.The firm’s revenue for the quarter was up 36.8% on a year-over-year basis. During the same period last year, the firm earned $1.23 EPS. Allegiant Travel updated its Q3 2026 guidance to -1.000–0.000 EPS.

Here are the key takeaways from Allegiant Travel’s conference call:

• Record revenue and industry-leading profitability: Allegiant reported record quarterly revenue, while both Allegiant and Sun Country delivered more than 20% year-over-year TRASM growth. The combined company posted a 9.2% operating margin, which management said led the U.S. airline industry for the quarter.
• Management raised confidence in the full-year outlook, maintaining a combined-company 2026 EPS target of at least $6. Strong leisure demand, disciplined capacity reductions, improving merchandising, a 24% increase in co-brand card remuneration, and early Expedia results are supporting revenue performance.
• The Sun Country integration is progressing, with cross-selling already enabled and procurement, network planning, and airport integration underway. Management remains confident in achieving at least $140 million in run-rate synergies by 2029, though a single operating certificate is not targeted until the first half of 2028.
• Elevated pilot attrition at Sun Country, concentrated among junior Minneapolis–St. Paul pilots, is forcing a temporary reduction in off-peak MSP capacity during the second half of 2026. Allegiant also expects third-quarter combined capacity to decline about 5.5% year over year, while pilot contract-related wage and benefit costs are expected to pressure non-fuel unit costs.
• The third quarter is expected to remain seasonally weak, with approximately 2% operating margin and a consolidated loss of about $0.50 per share, despite projected revenue growth of roughly 16.5%. Liquidity was strong at $1.3 billion, but the company expects to pay approximately $275 million in pilot retention bonuses and raise 2026 capital expenditure guidance to about $850 million.

Allegiant Travel Stock Down 1.0%

Shares of ALGT opened at $103.99 on Thursday. The company has a debt-to-equity ratio of 1.52, a quick ratio of 0.87 and a current ratio of 0.91. The company has a 50-day simple moving average of $100.80 and a 200-day simple moving average of $92.46. Allegiant Travel has a 52 week low of $47.27 and a 52 week high of $123.63. The firm has a market capitalization of $1.92 billion, a P/E ratio of 73.75, a P/E/G ratio of 0.27 and a beta of 1.53.

Analysts Set New Price Targets

ALGT has been the subject of a number of recent analyst reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Allegiant Travel in a research report on Friday, May 29th. Susquehanna upped their price target on shares of Allegiant Travel from $85.00 to $132.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 7th. JPMorgan Chase & Co. began coverage on Allegiant Travel in a report on Wednesday, July 1st. They set an “overweight” rating and a $156.00 price objective for the company. Citigroup raised Allegiant Travel from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $98.00 to $156.00 in a research report on Friday, June 26th. Finally, Bank of America boosted their target price on Allegiant Travel from $100.00 to $120.00 and gave the company a “neutral” rating in a research note on Wednesday, July 1st. Nine equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Allegiant Travel has a consensus rating of “Moderate Buy” and a consensus target price of $128.69.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. iSAM Funds UK Ltd acquired a new stake in Allegiant Travel during the third quarter valued at approximately $69,000. NewEdge Advisors LLC increased its holdings in Allegiant Travel by 43.7% during the 2nd quarter. NewEdge Advisors LLC now owns 1,227 shares of the transportation company’s stock valued at $67,000 after purchasing an additional 373 shares in the last quarter. Guggenheim Capital LLC acquired a new stake in shares of Allegiant Travel in the fourth quarter valued at $216,000. Verition Fund Management LLC acquired a new position in shares of Allegiant Travel during the fourth quarter worth approximately $222,000. Finally, Mangrove Partners IM LLC acquired a new stake in shares of Allegiant Travel in the fourth quarter valued at approximately $223,000. 85.81% of the stock is currently owned by institutional investors and hedge funds.

About Allegiant Travel

Allegiant Travel Company is a holding company that operates Allegiant Air, a low‐cost leisure airline offering scheduled and charter air service. The company focuses on connecting underserved secondary markets with popular vacation destinations across the United States. By targeting price‐sensitive leisure travelers, Allegiant Air operates a point‐to‐point network that avoids the traditional hub‐and‐spoke model, providing non‐stop flights from smaller cities to resort and entertainment hubs.

In addition to its core flight operations, Allegiant Travel Company offers packaged travel services that include hotel accommodations, rental cars and attraction tickets through its online portal.