Allegiant (NASDAQ: ALGT) sees Q2 EPS boost from Sun Country buy
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Allegiant Travel Company updated its outlook following the May 13, 2026 acquisition of Sun Country Airlines. The company now expects second quarter 2026 adjusted earnings per share for the combined entity to be at least $1.25, including Sun Country’s results through June 30, 2026.
This estimate assumes fuel at about $4.20 per gallon, a 20% effective tax rate, and 23.5 million diluted weighted average shares outstanding. The new outlook is significantly higher than prior standalone Allegiant Air guidance issued April 30, 2026, which contemplated an adjusted loss per share of roughly $0.50 at the midpoint.
On a standalone Allegiant Air basis, second quarter TRASM is now expected to rise by more than 23% year-over-year, above earlier expectations. Management attributes the improved outlook mainly to strong demand at both airlines during the quarter and lower fuel expense in June. The company emphasizes these are forward-looking, Non-GAAP figures and does not provide a GAAP reconciliation under the SEC’s “unreasonable efforts” exception.
Positive
- Q2 2026 earnings swing to profit: Allegiant now expects at least $1.25 in adjusted EPS for the combined entity, versus prior standalone guidance for an adjusted loss of about $0.50 per share.
- Stronger revenue performance: On a standalone Allegiant Air basis, second quarter TRASM is now projected to rise more than 23% year-over-year, exceeding earlier expectations.
- Acquisition contribution: The updated outlook incorporates Sun Country Airlines from May 13 to June 30, 2026, showing an immediate positive impact from the transaction under current demand and fuel conditions.
Negative
- None.
Insights
Allegiant turns an expected Q2 loss into a profit outlook after acquiring Sun Country.
Allegiant now projects at least $1.25 in adjusted EPS for Q2 2026 for the combined company, versus prior standalone guidance for an adjusted loss of about $0.50 per share. That swing reflects both the contribution from Sun Country Airlines and better-than-expected fundamentals.
Management cites a strong demand environment across both airlines and lower June fuel costs as key drivers. Assumptions include fuel around $4.20 per gallon, a 20% tax rate and 23.5 million diluted shares. On a standalone basis, Allegiant Air now expects TRASM to grow over 23% year-over-year, above earlier expectations.
The company presents these figures on a Non-GAAP basis and relies on the SEC’s “unreasonable efforts” exception to avoid providing a GAAP reconciliation, noting special charges will only be known after the period. Integration risks, cost synergies and demand trends will be important to track through subsequent quarterly results once full purchase accounting is complete.
8-K Event Classification
Item 8.01 — Other Events
1 item
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Key Figures
Adjusted EPS outlook Q2 2026 (combined): at least $1.25 per share
Prior standalone adjusted EPS guidance: approximately -$0.50 per share
Fuel cost assumption: about $4.20 per gallon
+4 more
7 metrics
Adjusted EPS outlook Q2 2026 (combined)
at least $1.25 per share
Combined Allegiant and Sun Country from May 13–June 30, 2026
Prior standalone adjusted EPS guidance
approximately -$0.50 per share
Standalone Allegiant Air guidance issued April 30, 2026
Fuel cost assumption
about $4.20 per gallon
Key assumption for Q2 2026 adjusted EPS estimate
Effective tax rate assumption
20%
Used in Q2 2026 combined entity EPS estimate
Diluted weighted average shares
23.5 million shares
Assumption for Q2 2026 combined entity
Standalone Allegiant TRASM change
more than 23% increase
Expected year-over-year TRASM growth in Q2 2026
Acquisition close date
May 13, 2026
Allegiant’s acquisition of Sun Country Airlines
Key Terms
adjusted earnings per share, TRASM, Non-GAAP financial figures, Regulation FD, +2 more
6 terms
TRASM financial
"On a standalone Allegiant Air basis, the Company now expects second quarter TRASM to increase more than 23 percent year-over-year"
Non-GAAP financial figures financial
"Certain forward-looking financial information presented above is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Non-GAAP financial figures may be useful"
Regulation FD regulatory
"This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD."
Regulation FD is a rule that prevents company insiders, like executives, from sharing important information with some people before others get it. It matters because it helps ensure all investors have equal access to key news, making the stock market fairer and reducing chances of insider trading.
unreasonable efforts exception regulatory
"In reliance on the 'unreasonable efforts' exception in Item 10(e)(1)(i)(B) of SEC Regulation S-K, a reconciliation to the most comparable GAAP financial measure is not provided"
forward-looking statements regulatory
"Forward Looking Statements Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this that are not historical facts are forward-looking statements."
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
_____________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 30, 2026
| (Exact name of registrant as specified in its charter) | ||||||||||||||||||||||||||||||||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||||||||||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||||||||||||||
Registrant’s telephone number, including area code: (702 ) 851-7300
| N/A | ||||||||||||||||||||||||||||||||
| (Former name or former address, if changed since last report.) | ||||||||||||||||||||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common stock, par value $0.001 | ALGT | NASDAQ Stock Market | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as in Rule 405 of the Securities Act of 1933 (Section 17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 17 CFR §240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 8 Other Events
Item 8.01 Other Events.
Following Allegiant Travel Company’s ("the Company" or "Allegiant") acquisition of Sun Country Airlines ("Sun Country") on May 13, 2026, our second quarter results will reflect consolidated financial and operational performance for the combined company from the date of close through quarter end. We now expect second quarter 2026 adjusted earnings per share for the combined entity to be at least $1.251, inclusive of Sun Country's results from May 13, 2026, through June 30, 2026. Key assumptions used in the calculation of adjusted earnings per share are summarized in the table below.
2nd Quarter 2026 Combined Entity Assumptions1 | |||||
| Fuel Cost per Gallon | ~ $4.20 | ||||
| Effective Tax Rate | 20% | ||||
| Diluted Weighted Average Shares Outstanding (millions) | 23.5 | ||||
The updated outlook exceeds the Company’s previously provided standalone Allegiant Air guidance issued on April 30, 2026, which contemplated an adjusted loss per share1 of approximately $0.50 at the midpoint. The improved earnings outlook is driven primarily by the favorable demand environment that has persisted at both airlines throughout the duration of the quarter as well as a reduction in fuel expense during the month of June. On a standalone Allegiant Air basis, the Company now expects second quarter TRASM to increase more than 23 percent year-over-year, exceeding prior expectations.
In accordance with general instruction B.2 of Form 8-K, the information in this report that is being furnished pursuant to Item 8.01 of Form 8-K shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act, as amended, or otherwise subject to liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth in such filing. This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD.
Certain forward-looking financial information presented above is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Non-GAAP financial figures may be useful to stakeholders, but should not be considered a substitute for GAAP figures. In reliance on the 'unreasonable efforts' exception in Item 10(e)(1)(i)(B) of SEC Regulation S-K, a reconciliation to the most comparable GAAP financial measure is not provided for adjusted earnings or loss per share. The Company is not able to reconcile this Non-GAAP financial figure without unreasonable effort because the special charge adjustments will not be known until the end of the indicated future periods and any range of projected values would be too broad to be meaningful. As a result, this information would not be significant to investors.
Forward Looking Statements
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this Form 8-K that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include our statements regarding our acquisition of Sun Country Airlines, future airline operations, revenue, expenses and earnings, available seat mile growth, expected capital expenditures, the cost of fuel, the timing of aircraft acquisitions and retirements, the number of contracted aircraft to be placed in service in the future, our ability to consummate announced aircraft transactions, as well as other information concerning future results of operations, business strategies, financing plans, competitive position, industry environment, and potential growth opportunities. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," “guidance,” "anticipate," "intend," "plan," "estimate," “project”, “hope” or similar expressions.
Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements generally may be found in our periodic reports filed with the Securities and Exchange Commission at www.sec.gov. These risk factors include, without limitation, the impact of regulatory reviews of, and production limits on, The Boeing Company on our aircraft delivery schedule, an accident involving, or problems with, our aircraft, public perception of our safety, our reliance on our automated systems, our reliance on Boeing to deliver aircraft under contract to us on a timely basis, risk of breach of security of personal data, volatility of fuel costs, labor issues and costs, the ability to obtain regulatory approvals as needed in connection with our fleet and network, the effect of economic conditions on leisure travel, debt covenants and balances, the impact of government regulations on the airline industry, the ability to finance aircraft to be acquired, the ability to obtain necessary government approvals to prepare to offer international service
from our markets, terrorist attacks, risks inherent to airlines, our competitive environment, our reliance on third parties who provide facilities or services to us, the impact of the possible loss of key personnel, economic and other conditions in markets in which we operate, increases in maintenance costs and availability of outside maintenance contractors to perform needed work on our aircraft on a timely basis and at acceptable rates, cyclical and seasonal fluctuations in our operating results and the perceived acceptability of our environmental, social and governance efforts; the risk that potential legal proceedings may be instituted against Allegiant or Sun Country and result in significant costs of defense, indemnification or liability; the risk that the combined company will not realize expected benefits, cost savings, accretion, synergies and/or growth from the Sun Country acquisition or that any of the foregoing may take longer to realize or be more costly to achieve than expected; the diversion of Allegiant's and Sun Country's respective management teams' attention and time from ongoing business operations and opportunities on acquisition-related matters; the risk that the integration of Sun Country's operations will be materially delayed or will be more costly or difficult than expected or that Allegiant is otherwise unable to successfully integrate Sun Country's businesses into its businesses; the possibility that the Sun Country acquisition may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of Allegiant's or Sun Country's customers, suppliers, employees, labor unions or other business partners, including those resulting from the completion of the Sun Country acquisition; and the dilution caused by Allegiant's issuance of additional shares of its common stock in connection with the consummation of the Sun Country acquisition.
Any forward-looking statements are based on information available to us today and we undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, Allegiant Travel Company has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: June 30, 2026 | ALLEGIANT TRAVEL COMPANY | ||||||||||
| By: | /s/ Robert Neal | ||||||||||
| Name: | Robert Neal | ||||||||||
| Title: | President, Chief Financial Officer | ||||||||||
FAQ
How did Allegiant (ALGT) change its Q2 2026 earnings outlook?
Allegiant now expects at least $1.25 in adjusted EPS for Q2 2026 for the combined Allegiant–Sun Country entity. This is a major improvement from prior standalone Allegiant guidance, which contemplated an adjusted loss per share of about $0.50 at the midpoint.
What assumptions support Allegiant’s updated Q2 2026 EPS guidance?
The updated adjusted EPS outlook assumes fuel at roughly $4.20 per gallon, a 20% effective tax rate, and 23.5 million diluted weighted average shares outstanding. These inputs underlie management’s estimate of at least $1.25 in adjusted earnings per share for the combined company.
How does the Sun Country acquisition affect Allegiant’s Q2 2026 results?
Second quarter 2026 results will consolidate Sun Country from May 13, 2026 through June 30, 2026. The higher adjusted EPS outlook reflects this contribution, alongside strong demand at both airlines and lower fuel expense during June, according to the company’s explanation.
What is happening with Allegiant Air’s TRASM in Q2 2026?
On a standalone Allegiant Air basis, second quarter TRASM is now expected to increase more than 23% year-over-year. Management notes this exceeds its earlier expectations and is one of the primary drivers of the improved adjusted earnings outlook for the period.
Is Allegiant’s new Q2 2026 EPS guidance based on GAAP or Non-GAAP?
The company’s at least $1.25 EPS outlook is an adjusted, Non-GAAP measure. Allegiant is not providing a reconciliation to the nearest GAAP figure, citing the SEC’s “unreasonable efforts” exception because special charge adjustments will only be known after the quarter ends.
What risks does Allegiant highlight around the Sun Country acquisition?
Allegiant lists risks including potential legal proceedings, integration challenges, higher-than-expected costs, reputational impacts, and the possibility the combined company may not realize expected benefits, cost savings, synergies, or growth from the Sun Country acquisition as quickly or fully as anticipated.