Allegiant Travel (NASDAQ:ALGT) Issues Quarterly Earnings Results

Key Points

• Allegiant beat expectations in Q1 with EPS $3.77 vs. $3.29 expected and revenue $732.4M, delivering a record quarter including a 14.9% adjusted operating margin and TRASM up 16.4%.
• Management cut Q2 guidance to ‑1.00–0.00 EPS6.5% ASM reduction as elevated jet fuel (assumed at $4.35/gal) is expected to add roughly $120M of incremental operating expense and push margins near break‑even.
• The proposed acquisition of Sun Country is nearing close (DOT approved; shareholder vote May 8, expected close ~May 13) with confidence in about $140M of synergies, while the company reports ~$1.2B in liquidity and net leverage around 1.8x.

Allegiant Travel (NASDAQ:ALGT - Get Free Report) announced its earnings results on Thursday. The transportation company reported $3.77 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.29 by $0.48, FiscalAI reports. Allegiant Travel had a negative net margin of 1.71% and a positive return on equity of 6.61%. The company had revenue of $732.43 million during the quarter, compared to analysts' expectations of $698.06 million. During the same quarter in the previous year, the business posted $2.11 earnings per share. The firm's quarterly revenue was up 4.8% compared to the same quarter last year. Allegiant Travel updated its Q2 2026 guidance to -1.000--0.000 EPS.

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

• Allegiant reported a record first quarter with a 14.9% adjusted operating margin, TRASM up 16.4%, and revenue of $732.4M (up 9.6%), its strongest quarterly performance ever.
• Elevated jet fuel is the main near‑term headwind — Q2 guidance assumes $4.35/gal, which Management says adds roughly $120M of incremental operating expense and implies a midpoint operating margin of ~1% and a loss per share of about $0.50.
• Management is actively matching capacity to demand, planning a 6.5% ASM reduction in Q2 with cuts focused on off‑peak and longer stage routes while preserving peak flying; they expect TRASM to be up sequentially.
• The Sun Country acquisition is nearing close (DOT approved; shareholder votes May 8, expected close ~May 13), with confidence in $140M of synergies and strategic benefits from Sun Country’s fixed‑fee charter/cargo business and increased aircraft ownership.
• Balance sheet and commercial momentum remain strengths — total liquidity of $1.2B, net leverage ~1.8x, a growing co‑branded card (600k+ holders; card remuneration >5% of revenue) and stronger‑than‑expected Allegiant Extra adoption supporting ancillary revenue.

Allegiant Travel Trading Up 1.5%

ALGT stock traded up $1.13 during midday trading on Thursday, hitting $75.64. The stock had a trading volume of 762,788 shares, compared to its average volume of 450,846. The company's 50-day moving average price is $85.33 and its 200 day moving average price is $83.15. The company has a debt-to-equity ratio of 1.60, a current ratio of 0.95 and a quick ratio of 0.92. The firm has a market cap of $1.40 billion, a PE ratio of -29.43, a price-to-earnings-growth ratio of 0.39 and a beta of 1.63. Allegiant Travel has a 12-month low of $42.56 and a 12-month high of $118.00.

Wall Street Analysts Forecast Growth

ALGT has been the subject of several research reports. Weiss Ratings restated a "sell (d)" rating on shares of Allegiant Travel in a research report on Wednesday, January 21st. Morgan Stanley raised their price target on Allegiant Travel from $85.00 to $100.00 and gave the stock an "equal weight" rating in a research report on Thursday, February 5th. Citigroup cut their price target on Allegiant Travel from $114.00 to $98.00 and set a "neutral" rating for the company in a report on Friday, March 20th. Wolfe Research upgraded Allegiant Travel from a "peer perform" rating to an "outperform" rating and set a $108.00 price objective on the stock in a research report on Tuesday, January 20th. Finally, UBS Group increased their price objective on Allegiant Travel from $90.00 to $93.00 and gave the company a "neutral" rating in a research note on Monday, March 23rd. Five analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Allegiant Travel currently has an average rating of "Hold" and a consensus price target of $97.91.

Insider Buying and Selling at Allegiant Travel

In other news, Chairman Maurice J. Gallagher, Jr. sold 175,000 shares of the firm's stock in a transaction on Friday, February 6th. The stock was sold at an average price of $114.23, for a total transaction of $19,990,250.00. Following the sale, the chairman owned 1,962,348 shares in the company, valued at $224,159,012.04. This trade represents a 8.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Over the last 90 days, insiders sold 300,000 shares of company stock worth $34,350,512. Corporate insiders own 14.70% of the company's stock.

Institutional Trading of Allegiant Travel

Hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC lifted its holdings in shares of Allegiant Travel by 24.8% during the 4th quarter. AQR Capital Management LLC now owns 18,689 shares of the transportation company's stock worth $1,594,000 after acquiring an additional 3,714 shares during the period. Man Group plc purchased a new stake in Allegiant Travel in the third quarter valued at approximately $1,545,000. Wells Fargo & Company MN grew its holdings in Allegiant Travel by 51.1% in the fourth quarter. Wells Fargo & Company MN now owns 16,197 shares of the transportation company's stock valued at $1,381,000 after purchasing an additional 5,479 shares during the period. Sei Investments Co. increased its position in Allegiant Travel by 32.6% during the third quarter. Sei Investments Co. now owns 20,428 shares of the transportation company's stock worth $1,241,000 after purchasing an additional 5,022 shares during the last quarter. Finally, Panagora Asset Management Inc. purchased a new position in Allegiant Travel during the fourth quarter worth approximately $1,016,000. 85.81% of the stock is owned by institutional investors and hedge funds.

Allegiant Travel Company Profile

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.

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