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…
Earnings analysis · 10-Q
ALGT earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- 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 stood out
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.