ALGT earnings analysis
What we found in ALGT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Allegiant reported strong second-quarter revenue of $943.5 million and adjusted diluted EPS of $2.19, substantially exceeding consensus, but GAAP diluted EPS was $(0.21) after $66.0 million of special charges. The acquisition of Sun Country adds cargo, hub-concentration, integration, and internal-control complexity, while fuel and interest-rate exposure remain significant: fuel was 31.0% of six-month operating expenses and variable-rate debt was $930.1 million. The overall outlook is mixed, supporting a neutral assessment despite the adjusted earnings beat.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and adjusted EPS beat estimates
- Second-quarter revenue was $943.5 million, exceeding the $931.4 million consensus estimate by approximately 1.3%. Adjusted diluted EPS was $2.19 versus the $0.97 estimate, a 125.8% upside surprise.
- Adjusted results masked GAAP loss
- Management reported adjusted diluted EPS of $2.19, while GAAP diluted loss per share was $(0.21), reflecting $66.0 million of special charges, including $55.2 million of integration costs.
- Fuel remains a major cost driver
- Fuel represented 31.0% of total operating expenses for the six months ended June 30, 2026, underscoring the importance of fuel-price management to margins and cash generation.
- Debt and rates remain material
- The company had $930.1 million of variable-rate debt as of June 30, 2026. A hypothetical 100-basis-point rate increase would have raised six-month interest expense by approximately $2.2 million.
- Sun Country integration is underway
- The Sun Country acquisition closed on May 13, 2026, and management is implementing controls for the acquired operations. Sun Country will be excluded from the company’s annual internal-control evaluation as of December 31, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Amazon concentration in cargo
- Sun Country’s cargo revenue represented approximately 16.4% of its total operating revenues for the stub period and consisted entirely of Amazon ATSA services. Amazon may decrease flying volume at any time, and the ATSA does not require a minimum amount of flying.
- ATSA reliability and termination risk
- The company stated that it does not currently meet the ATSA reliability standards needed to avoid penalties. The agreement includes monetary penalties for performance below thresholds, and Amazon may terminate all or part of the services if minimum reliability thresholds are not maintained.
- Heavy MSP concentration
- Sun Country’s network is concentrated at MSP: approximately 93% of its 2025 scheduled-service capacity had MSP as an origin or destination. Competition, weather disruptions, gate access, or higher facility fees at MSP could materially affect results.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.21
- Segment
- Sun Country cargo revenue represented approximately 16.4% of Sun Country’s total operating revenues for the stub period; the cargo revenue consisted entirely of services provided to Amazon under the ATSA.
- Segment
- Approximately 93% of Sun Country’s 2025 scheduled-service capacity, measured by ASMs, had Minneapolis-St. Paul (MSP) as either its origin or destination.
What they said about what is next.
The 10-Q does not provide a directly comparable prior outlook. Previously disclosed outlook included combined-company full-year 2026 adjusted EPS above $6.00 and third-quarter 2026 adjusted EPS of ($1.00) to ($0.00), with third-quarter adjusted operating margin of 1.0% to 3.0%, system ASMs expected to decline approximately 6.5%, and fuel cost assumed at $3.80 per gallon.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 6, 2026
- Allegiant Travel Company reported strong Q1 2026 results with total revenue coming in at $732.4 million, surpassing both estimates and the prior period, while diluted EPS reached $3.77, reflecting a significant increase…
- 10-K · February 26, 2026
- Allegiant positions itself as a low-cost, leisure-focused carrier pursuing growth via its 'Allegiant ONE' strategy and the announced January 11, 2026 agreement to acquire Sun Country (consideration: $4.10 cash and…
- 10-Q · May 7, 2025
- Allegiant reported a strong operational quarter: revenue rose to $699,074,000 (Q1 2025) from $656,406,000 a year earlier, operating income improved to $65,002,000 vs $15,448,000, and diluted EPS turned positive at $1.73…
- 10-Q · August 6, 2024
- Allegiant reported Q2 revenue of $666.283M (three months ended June 30, 2024) down from $683.810M in Q2 2023, with operating income collapsing to $34.897M from $133.429M a year ago. Diluted EPS fell to $0.75 from $4.80,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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