Allegiant Travel Company (ALGT) investor relations material

Executive summary

• Achieved record Q1 2026 operating revenue of $732.4M, up 9.6% year-over-year, with adjusted diluted EPS of $3.77, up 78.7% year-over-year, and the highest first quarter margin since pre-COVID at 14.9%.

• Strong leisure demand, disciplined capacity management, and commercial initiatives such as co-brand credit cards and premium seating drove performance, with TRASM up 16.4% and load factor up four points.

• Capacity was reduced by 5.9% year-over-year, focusing on profitability over utilization.

• Integration with Sun Country progressing rapidly, with all regulatory approvals received and closing expected by mid-May, enhancing flexibility and adding charter/cargo revenue streams.

• Operational reliability remained high, with a controllable completion factor exceeding 99.9%.

Financial highlights

• Adjusted net income was $69.6M, up 108.4% year-over-year; GAAP net income was $42.5M, up 32.3%, with adjusted EPS of $3.77.

• Adjusted EBITDA was $168M (22.9% margin), up 38% year-over-year; adjusted operating income was $108.9M.

• Cash and investments totaled $933.5M at quarter-end, with total liquidity of $1.2B and $250M undrawn revolver.

• Net debt was $858M, down over $100M sequentially; net leverage at 1.8x.

• Non-fuel unit costs (CASM-ex) rose 7.1% year-over-year to 8.64¢.

Outlook and guidance

• Q2 2026 guidance: operating margin of 0.0% to -2.0% and a loss per share of ~$0.50, assuming $4.35/gallon fuel, reflecting ~$120M in incremental expense.

• Capacity (ASMs) to be down 6.5% year-over-year in Q2, with further off-peak reductions likely in Q3; Q2 TRASM expected to grow sequentially and exceed Q1's 16.4% year-over-year growth.

• Full-year 2026 CapEx projected at $570M–$590M, with $80M–$90M for capitalized deferred heavy maintenance.

• No updated full-year guidance due to pending Sun Country merger; confidence in achieving $140M in synergies post-close.

• Ten additional Boeing 737 MAX aircraft expected to be delivered in the last nine months of 2026.