Allegiant Q2 2026: Sun Country Integration Lifts Revenue to a Record, but Special Charges and Fuel Costs Pressure the Bottom Line
ALGT sits 87% above its 52-week low of $47.83.
Summary
Allegiant's Q2 2026 10-Q reveals a transformed airline: record revenue of $943M driven by the Sun Country acquisition, but a net loss of $4.86M due to $66M in special charges and a 71% spike in fuel costs. The core Allegiant Air business remains strong with record unit revenue.
Key Events · Earnings and Guidance · ALGT
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Q2 Revenue Surges on Sun Country Addition
Consolidated operating revenue reached $943.5M, up 37% year-over-year, with Sun Country contributing $167.3M during its stub period from May 13 to June 30. Allegiant Air standalone revenue rose 16% to a record $776.2M on 6.8% less capacity.
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Net Loss Despite Operating Profit
Net loss was $4.86M ($0.21 per share) vs. a $65.2M loss a year ago. Operating income was $21.1M, but $66M in special charges—primarily $55.2M for Sun Country integration—and a $307.7M fuel bill (up 86%) eroded the bottom line.
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Balance Sheet Transformed by Merger
Total assets doubled to $6.4B, including $486M in goodwill and intangibles. Total debt and finance lease obligations rose to $2.78B from $1.8B at year-end, reflecting $650M in new senior secured notes and $570M in assumed Sun Country debt.
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Allegiant Air Unit Revenue Hits Record
Allegiant Air's TRASM (total revenue per available seat mile) reached a record 14.42 cents, up 24.6% year-over-year, driven by a 17.9% increase in average fare and a 4-point load factor improvement to 85.7%.
Analysis · ALGT · Energy & Transportation
The first post-merger quarterly report reveals the combined company's scale: revenue surged 37% to $943M, yet a net loss of $4.86M underscores heavy integration costs and soaring fuel prices. While the core Allegiant Air segment posted record unit revenue, Sun Country contributed $167M during its stub period. Special charges of $66M, mostly tied to the acquisition, masked underlying operating income of $21M. The balance sheet has transformed, with debt doubling to $2.8B to fund the deal and fleet renewal. The key question for investors is whether revenue synergies and cost savings from the merger can outpace the integration drag and fuel headwinds in the second half.
At the time of this filing, ALGT was trading at $89.54 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $47.83 to $123.63. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.