Allegiant Travel Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated total operating revenue for the quarter ended September 30, 2026, was $961.6 million, a 71.1% increase year-over-year.
• GAAP net loss was $15.2 million, or $(0.56) per diluted share, compared to a net loss of $43.6 million, or $(2.41) per diluted share, in the prior year period.
• Adjusted net loss was $0.9 million, or $(0.03) per diluted share, compared to an adjusted net loss of $37.7 million, or $(2.09) per diluted share, in the prior year period.
• Consolidated operating income was $10.8 million, compared to an operating loss of $27.2 million in the prior year.
• Adjusted operating income was $29.8 million, yielding an adjusted operating margin of 3.1%, a 3.4 percentage point improvement year-over-year on a pro forma basis.
• Adjusted EBITDA was $110.9 million, yielding an adjusted EBITDA margin of 11.5%, a 1.6 percentage point improvement over the prior year on a pro forma basis.
• Total operating expense was $950.8 million, up 61.4% year-over-year.
• Aircraft fuel expense was $293.6 million, up 94.1% year-over-year, driven by a 55.5% increase in average fuel cost per gallon to $3.98.
• Salaries and benefits expense was $287.4 million, up 46.3% year-over-year.
• Special charges, net of recoveries, totaled $19.1 million for the quarter, including $11.8 million for Allegiant and $7.3 million for Sun Country.
• Consolidated total debt was $2.9 billion as of September 30, 2026, with net debt of $2.1 billion.
• Consolidated total available liquidity was $1.1 billion, including $864.7 million in cash and investments and $250.0 million in undrawn revolving credit facilities.
• Cash used in operations during the quarter was $211.0 million, which included a $267.0 million pilot retention bonus payment.
• Capital expenditures for the quarter were $135.7 million, including $114.6 million for aircraft-related expenditures.
• Consolidated air traffic liability was $632.5 million as of September 30, 2026.

Guidance and Future Outlook:

• Management reaffirmed full-year 2026 adjusted earnings per share guidance of greater than $6.00.
• Fourth quarter 2026 guidance includes an adjusted operating margin of 6.0% to 7.0% and adjusted earnings per share of $1.00 to $1.50.
• Full-year 2026 aircraft-related capital expenditures are guided to be between $640 million and $660 million.
• Full-year 2026 capitalized deferred heavy maintenance is guided to be between $75 million and $85 million.
• Full-year 2026 other capital expenditures are guided to be between $115 million and $125 million.
• Full-year 2026 recurring principal payments are guided to be between $205 million and $215 million.
• Fourth quarter 2026 fuel cost per gallon is guided to be $4.75.
• Fourth quarter 2026 system ASMs are expected to be year-over-year flat, while scheduled service ASMs are expected to increase by approximately 1.7%.
• Management expects 72% of fourth quarter ASMs to be scheduled on high-demand peak days.
• Fuel-efficient MAX aircraft are expected to account for 20% of combined capacity in the fourth quarter.

Business Segments and Product Lines:

• Total fixed fee revenue was $83.6 million, up 7.9% year-over-year on a pro forma basis.
• Total ancillary revenue per passenger was $76.64, up 5.8% from the prior year on a pro forma basis.
• Allegiant Air co-brand credit card remuneration was $42.1 million, up 23.6% year-over-year (excluding Sun Country).
• TRASM (Total Revenue per Available Seat Mile) reached a record 14.18 cents for the third quarter, up 28.3% year-over-year on a pro forma basis.
• Capacity was reduced by nearly 6% year-over-year on a pro forma basis to protect margins.
• Allegiant Air operating income was $14.9 million, while Sun Country reported an operating loss of $4.1 million for the quarter.
• In October, the company exercised six Boeing 737-8 aircraft purchase options for delivery in 2028.
• Total firm aircraft orders under the Boeing purchase agreement are 56, with 22 delivered to date and 74 options remaining.
• The company was named 2026's Best Low-Cost Airline in North America by Skytrax for the third consecutive year.
• Allegiant earned the top spot in USA TODAY's 2026 Readers' Choice Awards for Best Airline Credit Card and Best Frequent Flyer Program.

Market and Competitive Landscape:

• The acquisition of Sun Country Airlines closed on May 13, 2026, significantly impacting comparability with prior year results.
• The sale of Sunseeker Resort occurred in September 2025.
• The combined entity serves approximately 22 million annual customers across scheduled passenger, charter, and cargo operations.
• The airlines operate more than 650 routes serving nearly 175 cities throughout the United States and select international destinations.
• Management cited robust demand from the customer base as a key driver of performance.

Risks and Challenges:

• Fuel costs surged more than 55% year-over-year, impacting operating expenses.
• The integration of Sun Country Airlines involves risks related to operational delays, costs, and the realization of expected synergies.
• Forward-looking statements are subject to risks including regulatory reviews, production limits on Boeing aircraft, labor issues, and economic conditions affecting leisure travel.
• Special charges related to the Sun Country acquisition, aircraft retirement, and software redevelopment impacted GAAP results.

Management Commentary and Tone:

• CEO Greg Anderson stated the company delivered "another quarter of operating profitability" and expanded adjusted operating margins despite high fuel costs.
• Management expressed confidence in the 2026 full-year adjusted earnings per share guidance despite elevated fuel costs.
• Anderson highlighted momentum in commercial initiatives, including co-brand remuneration growth of more than 23% and a new Expedia partnership.
• Management thanked dedicated teams for exceptional execution and continued integration progress.
• The company plans to share integration milestones and a long-term financial framework at an Investor Day on December 7.

Other Key Points:

• The acquisition of Sun Country Airlines closed on May 13, 2026, and its results are included in the 2026 figures from that date forward.
• Sunseeker Resort was sold in September 2025, and its results are excluded from 2026 figures.
• Pro forma comparisons are calculated as if the Sun Country acquisition and Sunseeker sale were completed on January 1, 2025.
• A $267.0 million pilot retention bonus payment was made during the third quarter.
• The company incurred gains on debt extinguishment related to prepayment of debt facilities in the third quarter.
• The company hosts a conference call with analysts on November 4, 2026, at 4:30 p.m. ET.