ALGT · Allegiant Travel Company

Allegiant Travel Company provided an updated financial outlook for the second quarter of 2026, reflecting the consolidation of Sun Country Airlines following its acquisition on May 13, 2026. The combined entity now expects adjusted earnings per share of at least $1.25, a significant improvement from the company's prior standalone guidance of an adjusted loss per share of approximately $0.50 (midpoint). The upward revision is attributed to a persistently strong demand environment across both airlines and a reduction in fuel costs during June. On a standalone Allegiant basis, total revenue per available seat mile (TRASM) is now expected to increase more than 23% year-over-year, surpassing previous forecasts. Key assumptions underpinning the guidance include an estimated fuel cost of $4.20 per gallon, an effective tax rate of 20%, and diluted weighted average shares outstanding of 23.5 million. The company noted that these estimates are preliminary and subject to change as purchase accounting and related valuations are finalized. The non-GAAP adjusted earnings metric is reconciled to GAAP figures where possible, but the company declined to provide a full reconciliation for future periods due to the unreasonable effort required to forecast special charges. This update signals a robust operational performance and successful initial integration of Sun Country, reinforcing investor confidence in the combined entity's earnings trajectory.