Company sees Q3 system ASMs down ~6.5% and scheduled service ASMs down ~5.5% yr/yr
Allegiant expects Q3 adjusted EPS between ($1.00) and $0.00
Company introduces full-year 2026 adjusted EPS guidance of more than $6.00
Result drivers
Unit revenue growth - Standalone Allegiant unit revenue rose 24.6% year over year despite a 6.8% capacity reduction
Sun Country acquisition - Sun Country contributed to consolidated results from May 13, supporting adjusted EPS
Higher fuel costs - Materially higher fuel costs impacted results, with Allegiant-only adjusted margin expanding despite a 73% increase in fuel cost per gallon
Analyst coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the airlines peer group is "buy"
Wall Street's median 12-month price target for Allegiant Travel Co is $133.50, about 29% above its August 3 closing price of $103.48
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago
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