Allegiant Travel Company (ALGT) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 operating revenue of $732.4M, up 9.6% year-over-year, with adjusted operating margin of 14.9%, the highest since pre-COVID, driven by strong leisure demand and operational reliability.

• Adjusted diluted EPS was $3.77, up 78.7% year-over-year, and adjusted net income reached $69.6M, up 108.4%.

• Capacity was reduced by 5.9% year-over-year, focusing on profitability over utilization, with load factor up nearly four points.

• Sun Country acquisition expected to close by mid-May 2026, with all regulatory approvals received and shareholder votes pending.

• Commercial initiatives, including co-brand credit cards and premium seating, drove revenue growth and higher customer loyalty.

Financial highlights

• Adjusted net income was $69.6M, GAAP net income was $42.5M, and adjusted EBITDA was $168.0M (22.9% margin).

• Diluted EPS was $2.30; adjusted EPS was $3.77.

• Cash and investments totaled $933.5M–$933.6M, with total liquidity at $1.2B.

• Net debt reduced to $858M, with net leverage at 1.8x.

• TRASM grew 16.4% year-over-year to 14.31¢, and load factor improved to 84.4%.

Outlook and guidance

• Q2 2026 guidance: operating margin of 0.0% to 2.0%, loss per share of ~$0.50 to ($1.00), and fuel cost per gallon at $4.35.

• Capacity (ASMs) expected to be down 6.5% year-over-year in Q2, with further off-peak reductions likely in Q3.

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

• No update to full-year guidance until after Sun Country transaction closes.

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