Allegiant Travel Company (ALGT) Q2 2026 earnings summary

Executive summary

• Record quarterly revenue of $943.5M in Q2 2026, up 36.9% year-over-year, driven by Sun Country acquisition and strong Allegiant performance; both brands posted over 20% TRASM growth.

• Integration of Sun Country progressing well, with early cross-selling, procurement synergies, and a plan for a single operating certificate; $140M in annual run-rate synergies targeted within three years.

• Strong operational performance, including industry-leading completion, baggage handling, and high customer loyalty with 70% repeat flyers.

• Commercial initiatives such as enhanced digital capabilities, co-brand credit card, and Expedia partnership are driving revenue and customer acquisition.

• New premium product, Allegiant First, to launch in 2027, building on the success of Allegiant Extra.

Financial highlights

• Combined Q2 2026 revenue reached $943.5M; Allegiant standalone revenue was $776.2M (+16.1% YOY) on 6.8% lower capacity; Sun Country contributed $167.3M post-acquisition.

• Adjusted consolidated operating margin was 9.2%, leading the U.S. airline industry for the quarter; adjusted EPS was $2.19.

• Adjusted consolidated EBITDA was $157.7M (16.7% margin); Allegiant-only adjusted EBITDA was $128.0M (16.5% margin).

• Sun Country standalone cargo revenue reached a record $50.6M for the quarter; fixed fee revenue was $65.7M.

• Total liquidity at quarter-end was $1.3B, with $1.1B in cash/investments and $250M undrawn revolver; total debt at $2.8B, net debt at $1.7B.

Outlook and guidance

• Third quarter 2026 unit revenue growth expected to match Q2’s 24.6% increase; full-year adjusted EPS guidance raised above $6.00, assuming $3.75–$3.80/gallon fuel.

• Q3 2026: Scheduled service capacity expected to be down 5.5% YOY; operating margin of 2% at midpoint; consolidated loss per share of ~$0.50.

• Full-year 2026 capital expenditures projected at $850M, including Sun Country and incremental aircraft payments.

• Minimum $140M in run-rate synergies from Sun Country integration expected by 2029.

• Capacity for 2027 will be dictated by market conditions, with flexibility from MAX deliveries.