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1. Company Snapshot

1.a. Company Description

Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States.The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations.As of February 14, 2022, it operated a fleet of 110 Airbus A320 series aircraft.


The company also provides air-related services and products in conjunction with air transportation, including baggage fees, advance seat assignments, travel protection products, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases.In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis.Further, the company operates a golf course.


Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.

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1.b. Last Insights on ALGT

Here is a 90-word analysis of the negative drivers behind Allegiant Travel Company's recent stock performance: Despite solid earnings estimate revisions and a strong industry, Allegiant Travel faces headwinds from escalating air-travel costs and intense competition. The company's Q4 earnings beat was overshadowed by concerns over rising expenses, which could pressure margins. Additionally, the airline's fleet additions, while a positive, may not be enough to offset the impact of increasing costs.

1.c. Company Highlights

2. Allegiant Travel Company's Q3 2025 Earnings: A Mixed Bag

Allegiant Travel Company reported a consolidated net loss of $37.7 million or a loss of $2.09 per share in the third quarter of 2025, missing analyst estimates of $-1.84. The Airline segment generated a negative 3.1% operating margin, which was at the better end of the original guided range. Airline revenue came in at $553 million, approximately 0.5% above the prior year. TRASM was $0.1119, down 8.4% year-over-year, in line with internal expectations.

Publication Date: Nov -29

📋 Highlights
  • Q3 Operating Loss Improved:: Consolidated net loss of $37.7M ($2.09/share) at the better end of guidance, with Airline EBITDA of $41.5M (7.5% margin).
  • Revenue Growth Outpaced Costs:: Airline revenue reached $553M (+0.5 YoY), with ASM growth of 9.7% vs. 3Q 2024 and peak aircraft utilization near 2019 levels (9 hrs/day).
  • Liquidity Strength:: Total available liquidity of $1.2B ($991.2M cash and investments + $175M undrawn credit) and 40% cash-to-TTM revenue ratio.
  • Debt Reduction Progress:: $180M in voluntary prepayments during Q3, reducing leverage ahead of 2026 fleet transitions and CapEx (exceeding 2025 levels).
  • Future Margin Expansion:: Raised full-year 2025 EPS guidance to >$4.35/share and expects 11% operating margin in Q4 2025, with 2026 margin growth driven by MAX aircraft (30% higher EBITDA than A320s).

Operational Performance

The company achieved an industry-leading completion factor in July, a peak period, and its net promoter scores remain near all-time highs. Average daily peak utilization per aircraft is over 9 hours, near record 2019 levels, indicating one of its best operational performances. As Greg Anderson, CEO, noted, "We've strengthened our core airline and focus on returning to a double-digit operating margin business."

Financial Outlook

The company expects to produce an 11% operating margin and deliver consolidated earnings of approximately $2 per share in the fourth quarter. Allegiant raised its airline EPS guide to more than $4.35 per share for the full-year 2025. For 2026, the company expects TRASM to exceed CASM, driven by a higher percentage of peak capacity, commercial initiatives, and loyalty contributions, resulting in margin expansion.

Valuation and Growth Prospects

With a P/E Ratio of -4.68 and an EV/EBITDA of 230.38, the market is pricing in significant growth prospects. Analysts estimate next year's revenue growth at 2.2%. The company's plan to deploy MAX aircraft on high-demand routes and its focus on driving shareholder value are expected to drive growth. The Allegiant Extra configuration has a $500 per departure contribution, and the company expects a 10-point RASM tailwind in 2026.

Capacity and Cost Management

The company does not anticipate notable capacity growth in 2026, but expects a year-over-year increase in TRASM. CASM is expected to be in the mid-single digits by the end of the year, with continued pressure in the fourth quarter due to maintenance and rent costs. The company is managing costs effectively, with a focus on productivity and efficiency improvements.

Long-term Trajectory

The company's goal is to get back to solid double-digit operating margins. With 50% of Allegiant's available seat miles expected to be flown by MAX aircraft by 2028, the company is poised for margin expansion in 2026 and 2027, driven by the benefits of the MAX, technology initiatives, and productivity improvements.

3. NewsRoom

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Allegiant Introduces Altus Sol: A First-of-Its-Kind Wine Crafted for an Elevated Experience at 30,000 Feet

Dec -03

Source: prnewswire.com

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Commonwealth of Pennsylvania Public School Empls Retrmt SYS Makes New $204,000 Investment in Allegiant Travel Company $ALGT

Nov -29

Source: defenseworld.net

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Allegiant's October 2025 Traffic Numbers Improve Year Over Year

Nov -26

Source: zacks.com

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Allegiant Reports October 2025 Traffic

Nov -25

Source: prnewswire.com

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5 Broker-Liked Stocks to Keep an Eye on Amid the Current Market Swings

Nov -24

Source: zacks.com

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Allegiant Travel Company (NASDAQ:ALGT) Receives Average Rating of “Hold” from Brokerages

Nov -19

Source: defenseworld.net

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Allegiant Adds 30 New Nonstop Routes, Entering Four New Markets

Nov -18

Source: prnewswire.com

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Donald Smith & Co Increases Stake in Allegiant Travel Co

Nov -15

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.00%)

6. Segments

Airline

Expected Growth: 9.0%

Allegiant Travel Company's 9.0% growth is driven by increasing demand for low-cost travel, strategic route expansion, and efficient operations. The airline's focus on underserved markets, high aircraft utilization, and low fares also contribute to its growth. Additionally, Allegiant's ability to attract price-sensitive customers and its limited exposure to competitive markets further support its growth momentum.

Sunseeker Resort

Expected Growth: 8.5%

Sunseeker Resort's 8.5% growth driven by increasing demand for luxury vacation experiences, strategic partnerships with Allegiant Air, and expansion of amenities and services. Additionally, the resort's unique offerings, such as private beach access and upscale dining, attract high-end customers willing to pay premium rates, contributing to revenue growth.

7. Detailed Products

Scheduled Air Service

Allegiant Air operates a low-cost, high-efficiency airline that offers affordable fares and convenient travel to popular destinations in the United States.

Hotel Booking

Allegiant offers a wide selection of hotels and resorts at discounted rates, allowing customers to bundle their travel and accommodations.

Car Rental

Allegiant partners with top car rental companies to offer discounted rates on car rentals, making it easy to get around at your destination.

Vacation Packages

Allegiant offers bundled vacation packages that include flights, hotels, and car rentals, making it easy to plan and book a trip.

Travel Insurance

Allegiant offers travel insurance options to protect customers against unexpected trip cancellations, interruptions, or medical emergencies.

Bundle and Save

Allegiant's bundle and save program allows customers to save money by booking multiple travel components together.

8. Allegiant Travel Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Allegiant Travel Company faces moderate threat from substitutes, as customers have limited alternatives for air travel, but can opt for other modes of transportation like buses, trains, or cars for shorter distances.

Bargaining Power Of Customers

Allegiant Travel Company's customers have low bargaining power due to the lack of switching options and the company's focus on budget-conscious travelers who prioritize low fares over amenities.

Bargaining Power Of Suppliers

Allegiant Travel Company's suppliers, such as aircraft manufacturers and fuel providers, have moderate bargaining power due to the company's dependence on a limited number of suppliers and the high costs of switching.

Threat Of New Entrants

The threat of new entrants is low for Allegiant Travel Company due to the high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise.

Intensity Of Rivalry

Allegiant Travel Company operates in a highly competitive industry, with intense rivalry among low-cost carriers, which can lead to price wars, advertising battles, and aggressive capacity expansion.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 58.21%
Debt Cost 8.77%
Equity Weight 41.79%
Equity Cost 12.05%
WACC 10.14%
Leverage 139.30%

11. Quality Control: Allegiant Travel Company passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Air Transport Services Group

A-Score: 5.1/10

Value: 6.7

Growth: 4.9

Quality: 4.8

Yield: 0.0

Momentum: 9.0

Volatility: 5.0

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Sun Country Airlines

A-Score: 4.8/10

Value: 7.2

Growth: 6.7

Quality: 5.7

Yield: 0.0

Momentum: 6.5

Volatility: 3.0

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Blade Air Mobility

A-Score: 3.9/10

Value: 8.2

Growth: 5.4

Quality: 3.1

Yield: 0.0

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

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Spirit Airlines

A-Score: 3.7/10

Value: 9.8

Growth: 1.6

Quality: 2.9

Yield: 3.0

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Allegiant Travel

A-Score: 3.2/10

Value: 6.1

Growth: 3.0

Quality: 1.7

Yield: 0.0

Momentum: 5.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Frontier

A-Score: 2.8/10

Value: 7.0

Growth: 3.9

Quality: 2.9

Yield: 0.0

Momentum: 2.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

79.44$

Current Price

79.44$

Potential

-0.00%

Expected Cash-Flows