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 $140M in annual run-rate synergies targeted within three years; both airlines continue to operate separately pending a single FAA certificate.

• Maintained industry-leading operating margin for the third consecutive quarter, with Allegiant achieving a record TRASM of 14.42¢ and Sun Country standalone TRASM up 22% year-over-year.

• Customer loyalty remains high, with 70% repeat flyers and robust NPS scores; competitive advantages include high repeat customer rates, flexible fleet ownership, and strong local market positions.

• Strong operational performance, including top-tier completion and baggage handling metrics, and robust demand during the summer peak.

Financial highlights

• Adjusted consolidated operating margin reached 9.2%, best among U.S. carriers for the quarter; adjusted consolidated EBITDA was $157.7M (16.7% margin); Allegiant-only adjusted EBITDA was $128.0M (16.5% margin).

• Combined pre-tax income of $64.5M in Q2; adjusted net income was $51.1M; adjusted EPS was $2.19; GAAP consolidated loss before taxes was ($5.2)M, with Sun Country contributing a ($13.1)M loss.

• Standalone Allegiant revenue was $776.2M (+16.1% YOY); Sun Country standalone cargo revenue reached a record $50.6M.

• 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.

• Q2 2026 net loss of $4.9M, a significant improvement from a $65.2M loss in Q2 2025; special charges of $66.0M in Q2 2026, mainly related to Sun Country acquisition and integration.

Outlook and guidance

• Third quarter 2026 unit revenue growth expected to match 2Q26’s 24.6% increase; full-year adjusted EPS guidance raised to over $6.00, assuming $3.75/gallon average fuel cost in 2H26.

• Q3 consolidated loss per share expected at ~$0.50; 3Q26 adjusted operating margin guidance: 1.0% to 3.0%; adjusted EPS guidance: ($1.00) to $0.00.

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

• Capacity will be actively managed, with full-year ASMs expected to decline mid-single digits.

• Margin expansion expected for the full year despite higher fuel costs; each $0.10/gallon fuel change impacts EPS by ~$0.50.