Q2 26 EPS
$2.19
BEAT +72.85%
Est. $1.27
Q2 26 Revenue
$943.5M
MISS 4.71%
Est. $990.1M
vs S&P Since Q2 26
-9.5%
TRAILING MARKET
ALGT -9.0% vs S&P +0.5%
Market Reaction
Did ALGT Beat Earnings? Q2 2026 Results
Allegiant Travel Company delivered a sharp earnings beat in Q2 2026, posting adjusted EPS of $2.19 against a consensus estimate of $1.27, a 72.85% positive surprise, even as revenue of $943.49 million fell 4.71% short of the $990.09 million analysts … Read more Allegiant Travel Company delivered a sharp earnings beat in Q2 2026, posting adjusted EPS of $2.19 against a consensus estimate of $1.27, a 72.85% positive surprise, even as revenue of $943.49 million fell 4.71% short of the $990.09 million analysts had expected. The top-line miss largely reflects the timing of the Sun Country Airlines acquisition, which closed May 13 and contributed only seven weeks of results, adding $167.30 million in revenue to a consolidated total that still grew 36.9% year over year. Standalone Allegiant Air was the engine behind the profit beat, generating record quarterly revenue of $776.20 million, up 16.1% year over year, with unit revenue surging 24.6% despite a 6.8% capacity reduction. The combined company's 9.2% adjusted operating margin was the strongest among U.S. Carriers for the quarter, even as fuel costs rose 71% to $4.14 per gallon. Management guided full-year 2026 adjusted EPS above $6.00, and a recently ratified pilot agreement adds further operational clarity heading into the integration.
Key Takeaways
- • Standalone Allegiant TRASM increased 24.6% YoY to an all-time record of 14.42 cents despite 6.8% capacity reduction
- • Yield increased more than 40% YoY with load factor up approximately 4 percentage points
- • Cobrand credit card bank remuneration increased 23.6% YoY to $41.2 million
- • Peak-focused scheduling model concentrated capacity around strongest demand periods
- • MAX aircraft represented 21% of Q2 ASMs vs. 11% in prior year
- • Sun Country contributed $167.3 million in revenue and $13.4 million in adjusted pre-tax income during stub period
- • 39 new standalone Allegiant markets launched during H1 2026 representing 9-10% of Q2 and Q3 ASMs
ALGT Forward Guidance & Outlook
For Q3 2026, the combined company expects system ASMs to decline approximately 6.5% YoY and scheduled service ASMs to decline approximately 5.5% YoY (vs. pro forma prior-year combined base). Fuel cost per gallon is expected at $3.80. Adjusted operating margin is guided at 1.0% to 3.0%, and adjusted EPS at ($1.00) to $0.00. Q3 total revenue is expected to increase approximately 16.5% compared to combined airline-only Q3 2025 revenue of approximately $808 million. Q3 unit revenue growth is expected to be approximately in line with the 24.6% standalone Allegiant increase achieved in Q2. For full-year 2026, adjusted EPS for the combined entity is expected to exceed $6.00, assuming average fuel cost of approximately $3.70 per gallon and weighted average shares outstanding of 23.9 million. Full-year combined ASMs are expected to decline mid-single digits. Full-year capital expenditures are expected to be approximately $850 million, including aircraft-related capex of $640-$660 million, capitalized deferred heavy maintenance of $75-$85 million, and other capital expenditures of $115-$125 million. Management expects a minimum of $140 million in annual run-rate synergies within three years of the Sun Country close. An Analyst Day is scheduled for December 7 in Las Vegas. Each $0.10 per gallon change in fuel represents approximately $0.50 of combined-company EPS. A pilot retention bonus of approximately $275 million is expected to be paid in the coming weeks.
ALGT YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
ALGT Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our record quarterly revenue and strong second-quarter operating margin, achieved despite materially higher fuel costs, demonstrate the strength and resiliency of Allegiant's business model. Despite a 6.8 percent capacity reduction, standalone Allegiant increased unit revenue 24.6 percent year over year and expanded adjusted operating margin 0.4 percentage points to 9.0 percent, keeping us on track to rank among the industry leaders in full-year operating margin.”
— Greg Anderson, Q2 2026 Earnings Press Release
ALGT Earnings Trends
ALGT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ALGT EPS Trend
Earnings per share: estimate vs actual
ALGT Revenue Trend
Quarterly revenue: estimate vs actual
ALGT Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $1.27 | $2.19 | +72.85% | $943.5M | -4.71% |
| Q1 26 BEAT | $3.49 | $3.77 | +8.08% | $732.4M | +2.24% |
| Q4 25 BEAT FY | $1.99 | $2.72 | +36.48% | $656.2M | +1.51% |
| FY Full Year | — | $3.80 | — | $2.61B | — |
| Q3 25 MISS | $-1.80 | $-2.09 | -16.42% | $561.9M | -2.74% |
| Q2 25 BEAT | $0.85 | $1.23 | +45.15% | $689.4M | +0.73% |