Allegiant Travel Q2 revenue misses estimates on higher fuel costs

Allegiant Travel

04/08/2026 21:17

Overview
U.S. leisure airline's Q2 revenue rose but missed analyst expectations
Adjusted EPS for Q2 jumped 78% and beat analyst expectations
Company said Sun Country acquisition and higher unit revenue drove strong EPS

Outlook
Company sees Q3 system ASMs down ~6.5% and scheduled service ASMs down ~5.5% yr/yr
Allegiant expects Q3 adjusted EPS between ($1.00) and $0.00
Company introduces full-year 2026 adjusted EPS guidance of more than $6.00

Result Drivers
UNIT REVENUE GROWTH - Standalone Allegiant unit revenue rose 24.6% year over year despite a 6.8% capacity reduction
SUN COUNTRY ACQUISITION - Sun Country contributed to consolidated results from May 13, supporting adjusted EPS
HIGHER FUEL COSTS - Materially higher fuel costs impacted results, with Allegiant-only adjusted margin expanding despite a 73% increase in fuel cost per gallon

Company press release: ID:nPn4gXnjZa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$943.50 mln
$978.16 mln (9 Analysts)
Q2 Adjusted EPS
Beat
$2.19
$1.14 (11 Analysts)
Q2 Loss Per Share
 
$0.21
 
Q2 Net Loss
 
$4.90 mln
 
Q2 Operating Income
 
$21.10 mln
 
Q2 Pretax Loss
 
$5.20 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the airlines peer group is "buy"
Wall Street's median 12-month price target for Allegiant Travel Co is $133.50, about 29% above its August 3 closing price of $103.48
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Aug 3 - Allegiant pilots ratify two-year deal with carrier
Aug 4 - Lufthansa warns profits could fall as Iran war stokes fuel costs
Aug 4 - TransDigm lifts 2026 forecast on robust aftermarket aircraft parts demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)