Allegiant Travel Company

Allegiant Travel Company operates leisure airline Allegiant Air and, following its May 2026 acquisition, Sun Country Airlines. It earns money from scheduled passenger flights, passenger extras, credit-card partnerships, charter work and cargo flying. Its shares trade on Nasdaq under ALGT.

A larger airline after Sun Country

Allegiant acquired Sun Country on May 13, 2026, for $976.0 million of purchase consideration, including cash, shares and other transaction components. Reported results include Sun Country from that date. The Sunseeker resort was sold in September 2025.

The combined airline targets more than $140 million of annual run-rate integration benefits by 2029. Early work includes shared ground handling, insurance and purchasing. The target describes the expected annual benefit once achieved.

Results and the comparison that matters

Q3 GAAP net loss was $15.2 million, or $0.56 a share. Adjusted net loss was about $0.9 million, or $0.03 a share. Adjustments remove specified special charges, including integration costs and accelerated depreciation and software amortization, and adjust for debt extinguishment gains or losses.

Revenue rose 19% on the combined airline comparison while scheduled capacity fell 5.7%. The reported 71.1% growth includes Sun Country for the first time and compares with an earlier group that still owned Sunseeker.

Earlier promises and current outlook

On August 4, management expected combined Q3 revenue per available seat mile growth of roughly 24.6%, a 1% to 3% adjusted operating margin and an adjusted loss per share of $1 to break-even. Actual results were 28.3%, 3.1% and a $0.03 loss, respectively. Fuel cost $3.98 a gallon against the $3.80 assumption.

The November outlook keeps full-year 2026 adjusted EPS above $6, first introduced in August. Q4 guidance is $1 to $1.50 of adjusted EPS and a 6% to 7% adjusted operating margin. Fuel is assumed at $4.75 a gallon; combined revenue per available seat mile is expected to grow more than 20%, with scheduled capacity up about 1.7%.

The company expects 2027 capital spending to exceed 2026, with fleet and capacity plans still being finalized. The next test is whether stronger fares, passenger extras and more efficient aircraft can offset higher fuel and non-fuel costs.

Cash, investment and borrowings

Operating cash flow for the nine months ended September 30 was $103.2 million versus $277.6 million a year earlier. Q3 alone used $211 million, including the $267 million pilot retention payment. Of that payment, $235.9 million had been accrued before 2026.

Nine-month cash spending on property and equipment and aircraft pre-delivery deposits totaled $523.5 million. The cash-flow statement separately records $167.1 million paid for the Sun Country acquisition, net of cash acquired.

The two revolvers were undrawn at quarter-end. A separate $177.5 million aircraft facility was fully drawn in October. September's debt total includes $635.9 million of finance leases; operating lease liabilities are separate.

Allegiant made no open-market share repurchases in the first nine months of 2026. Its remaining authorization was $64.7 million, and the quarterly cash dividend remains indefinitely suspended as it funds fleet investment.

Commercial developments

Allegiant extended its Bank of America co-branded credit-card agreement through 2036. The Expedia distribution agreement is bringing in new customers, according to management, while the premium Allegiant First product is scheduled to begin flying in March 2027. These initiatives sit alongside the integration of Sun Country rather than replacing its charter and cargo operations.