Allegiant (NASDAQ: ALGT) raises Q1 2026 earnings outlook as demand surges

Rhea-AI Filing Summary

Allegiant Travel Company updated its first quarter 2026 outlook, now expecting a record quarter for total revenue despite system capacity being down about 5.5% year over year. Strong demand has outperformed earlier expectations.

Fuel costs have risen sharply, with expected first quarter fuel cost per gallon increasing to $3.00 from prior guidance of $2.60. Even so, Allegiant now projects an adjusted operating margin of 13.5% to 14.5% and adjusted earnings per share of $3.25 to $3.75, up from the previous range of $2.50 to $3.50. This guidance is on a stand-alone basis and excludes any contribution from the planned Sun Country acquisition.

Positive

• Raised Q1 2026 earnings guidance: Adjusted EPS outlook increased to $3.25–$3.75 from $2.50–$3.50, reflecting demand strong enough to more than offset higher fuel costs.
• Record quarterly revenue expected: Management now anticipates first quarter 2026 will be a record quarter for total revenue, even with system capacity down about 5.5% year over year.

Negative

• None.

Insights

Airline equity analyst

Allegiant raises Q1 2026 earnings guidance as demand offsets higher fuel.

Allegiant reports stronger-than-expected demand for first quarter 2026, expecting record total revenue even though capacity is down about 5.5%. This suggests robust pricing and load factors, important drivers of airline profitability when flying fewer seats.

Fuel price assumptions have increased meaningfully, with expected fuel cost per gallon rising to $3.00 from $2.60, reflecting geopolitical pressures. Despite this headwind, Allegiant now targets adjusted operating margin of 13.5%–14.5% and adjusted EPS of $3.25–$3.75, both above prior guidance.

The outlook factors in impacts from a major winter storm through March 16, 2026 and excludes any contribution from the planned Sun Country acquisition. Full-year guidance is being held until fuel price trends become clearer, so subsequent filings may refine expectations as 2026 progresses.

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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): March 17, 2026

Allegiant Travel Company

(Exact name of registrant as specified in its charter)

Nevada		001-33166		20-4745737
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

1201 North Town Center Drive
Las Vegas, NV		89144
(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:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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 7 Regulation FD

Item 7.01 Regulation FD Disclosure.

Allegiant Travel Company ("the Company" or "Allegiant") management is presenting March 17, 2026, at the J.P. Morgan Industrials Conference. Ahead of this presentation, Allegiant is providing an update on its first quarter 2026 financial guidance, previously provided on February 4, 2026.

Since the Company’s prior first quarter 2026 financial guidance, the demand environment has outperformed expectations. Allegiant now expects first quarter 2026 to represent a record quarter for total revenue, despite Allegiant's expectation that system capacity will be down approximately 5.5 percent year-over-year.

Fuel prices have increased significantly since the beginning of the quarter due to geopolitical factors. As a result, the Company now expects its first quarter fuel cost per gallon to be approximately $3.00, compared with its previous guidance of $2.60.

The Company expects strong first quarter revenue performance to more than offset higher fuel costs and is raising its first quarter adjusted earnings outlook as provided below. This outlook reflects the Company’s current assessment of the impacts from the major winter storm affecting parts of the U.S. through March 16, 2026, though additional impacts could arise.

Given the recent volatility in fuel prices, the Company is not updating its full-year outlook at this time and will provide an updated view as fuel price trends become clearer.

The table below summarizes the Company’s updated first quarter 2026 financial guidance:

The below guidance is for Allegiant on a stand-alone basis and excludes any contribution from our planned acquisition of Sun Country

1st Quarter 2026 Metric	Current Guidance	Previous Guidance
System ASMs – year over year change	(~5.5%)	(~5.7%)
Scheduled service ASMs – year over year change	(~5.7%)	(~5.7%)
Fuel cost per gallon	$3.00	$2.60
Adjusted operating margin (1)	13.5% to 14.5%	12.0% to 15.0%
Adjusted earnings per share (1)	$3.25 to $3.75	$2.50 to $3.50

⁽¹⁾ Denotes a non-GAAP financial measure, which excludes special charges, and for which no reconciliation to GAAP is provided as described below.

In accordance with general instruction B.2 of Form 8-K, the information in this report that is being furnished pursuant to Item 7.01 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 in the above table 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 per share and adjusted operating margin. The Company is not able to reconcile these Non-GAAP financial figures 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 the announced merger with 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 occurrence of any event, change or other circumstance that could give rise to the right of one or both of Allegiant or Sun Country to terminate the definitive merger agreement for the Sun Country acquisition; 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 possibility that the Sun Country acquisition does not close when expected or at all because required stockholder approvals, required regulatory approvals or other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction); 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; disruption to the parties' businesses as a result of the announcement and pendency of the Sun Country acquisition; the costs associated with the anticipated length of time of the pendency of the Sun Country acquisition, including the restrictions contained in the definitive merger agreement on the ability of each of Sun Country and Allegiant to operate their respective businesses outside the ordinary course consistent with past practice during the pendency of the Sun Country acquisition; 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 announcement or 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:  March 17, 2026	ALLEGIANT TRAVEL COMPANY
	By:	/s/ Robert Neal
	Name:	Robert Neal
	Title:	President, Chief Financial Officer

FAQ

How did Allegiant Travel Company (ALGT) change its Q1 2026 earnings guidance?

Allegiant raised its first quarter 2026 adjusted earnings per share guidance to $3.25–$3.75, up from $2.50–$3.50. Management expects strong demand and higher revenue to more than offset increased fuel costs during the quarter.

What revenue performance does Allegiant (ALGT) expect for first quarter 2026?

Allegiant expects first quarter 2026 to be a record quarter for total revenue. This outlook comes even though system capacity is projected to be down about 5.5% year over year, indicating stronger demand and pricing.

How have fuel cost expectations changed for Allegiant’s Q1 2026 guidance?

Allegiant now forecasts first quarter 2026 fuel cost per gallon of about $3.00, compared with previous guidance of $2.60. The company attributes this increase to geopolitical factors driving higher fuel prices during the quarter.

What adjusted operating margin is Allegiant guiding for Q1 2026?

Allegiant now projects an adjusted operating margin of 13.5% to 14.5% for first quarter 2026. This compares with prior guidance of 12.0% to 15.0%, effectively shifting the expected margin range upward despite higher fuel costs.

Does Allegiant’s updated Q1 2026 guidance include the planned Sun Country acquisition?

No, the updated first quarter 2026 guidance is on a stand-alone basis for Allegiant only. It explicitly excludes any contribution from the planned acquisition of Sun Country, which may affect future periods once completed.

Why is Allegiant not updating its full-year 2026 outlook in this 8-K?

Allegiant is keeping its full-year 2026 outlook unchanged because of recent volatility in fuel prices. Management plans to provide an updated full-year view once fuel price trends become clearer, helping refine longer-term expectations.

How does the major winter storm affect Allegiant’s Q1 2026 guidance?

The updated outlook reflects Allegiant’s current assessment of impacts from a major winter storm affecting parts of the U.S. through March 16, 2026. Management notes that additional impacts could arise beyond those currently incorporated.

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