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what it is
Allegiant flies leisure travelers from smaller cities and sells them hotels, rental cars, and trip extras.
how it gets paid
Full-year 2025 consolidated operating revenue was $2.61 billion (+3.7% YoY). Airline operating revenue was $2.55 billion (+4.3%) — almost the entire business.
why it's growing
Consolidated revenue growth was 3.7%; airline-only revenue grew 4.3%. Year-over-year consolidated comparisons are still distorted by Sunseeker / special items — the release separates airline-only adjusted metrics.
what just happened
Q4 2025 consolidated operating revenue $656.2 million. GAAP diluted EPS $1.73; adjusted airline-only diluted EPS $2.72 (non-GAAP definitions in the release).
At a glance
B+ balance sheet — decent shape, but not bulletproof
5/100 earnings predictability — expect surprises
29.4x trailing p/e — priced about right
13.5% return on capital — nothing to write home about
xvary composite: 52/100 — below average
What they do
Allegiant flies leisure travelers from smaller cities and sells them hotels, rental cars, and trip extras.
Allegiant wins by flying routes bigger airlines often ignore. It serves 124 cities with 121 aircraft, aimed at leisure trips where your alternative is usually a longer drive or a pricier connection. That niche keeps demand more captive than a normal airline route map.
How they make money
$2.61B
FY2025 consolidated operating revenue · +3.7% YoY (release table)
airline operating revenue (FY2025)
$2.55B
+4.3%
other consolidated (incl. non-airline)
~$0.06B
The products that matter
flies leisure passengers
Scheduled air travel
$2.61B consolidated FY2025 · airline $2.55B
almost every dollar is airline operating revenue; consolidated totals include other segments and are the line the company tables first.
core airline
Key numbers
12.9%
adj. airline-only op. margin (Q4’25)
From the Feb 4, 2026 release — adjusted airline-only, not consolidated GAAP. FY adjusted airline-only margin was 7.4%.
$1.8B
long-term debt
Total debt ~$1.8B at Dec 31, 2025 per release; net debt ~$961M. Leverage still matters for an airline.
29.4x
trailing p/e
P/E → how many dollars you pay for one dollar of past profit → so what: you are paying a premium multiple for a messy earnings history.
25.0%
projected earnings growth
Earnings growth → profit growth over time → so what: the stock needs this rebound to show up, because the current margin does not support much disappointment.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $1.8B (51% of capital)
- net profit margin 10.2% — keeps 10 cents of every dollar in revenue
- return on equity 24% — $0.24 profit for every $1 investors have put in
B+ — return on equity looks solid but long-term debt needs watching.
Total return vs. market
You invested $10,000 in ALGT 3 years ago → it's now worth $9,200.
The index would have given you $13,880.
source: institutional data · total return
What just happened
reported results
Q4 2025 consolidated operating revenue $656.2M · GAAP diluted EPS $1.73
Adjusted airline-only diluted EPS was $2.72; adjusted airline-only operating margin 12.9%. Full-year GAAP diluted loss $(2.48) reflects special items — adjusted diluted EPS $3.80 consolidated and $5.07 airline-only per the same release.
$656.2M
Q4 revenue
$2.72
adj. airline EPS
12.9%
adj. airline op. margin
the number that mattered
The airline-only adjusted margin and EPS lines cut through Sunseeker and special-charge noise — use them before inferring “1% operating margin.”
-
allegiant travel’s pending purchase of sun country airlines presents good long-term opportunities.on january 11th, allegiant and sun, respectively based in las vegas and minneapolis, announced a $1.1 billion cash-and-stock deal to combine.
-
sun has accepted allegiant’s $18.89-a-share bid.
-
the prospective parent will assume $400 million in net debt.management believes it can secure stockholder and regulatory approvals in time for a second-half 2026 closing.
-
sun would provide allegiant with a sizable air cargo business, inclusive of customer amazon.com.in addition, sun would give allegiant greater penetration into the midwest and international markets.
-
both airlines possess flexible capacity across peak and trough demand periods.
source: Allegiant Q4 & FY2025 release (Feb 4, 2026)
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What could go wrong
the #1 risk is Sun Country deal approval and integration — because the stock is already leaning on a combined-company future that has not happened yet.
high
Sun Country deal approval and integration
the transaction is $1.1B, plus about $400M of assumed net debt, against a company with a roughly $2B market cap. if regulators block it or integration slips, you are left re-rating a standalone airline that was already volatile on its own.
this is the main bridge to the projected move from ~$2.6B consolidated revenue toward higher targets in guidance.
med
cost inflation in a thin-margin airline
fuel, labor, and maintenance costs do not have to move much to matter here. a 6.1% net margin leaves little cushion, and the latest quarter already printed a -1.9% margin.
when your margin starts in single digits, small cost misses can wipe out profit fast.
med
leverage and stock volatility
Allegiant already carries $1.8B in long-term debt, equal to 51% of capital, while price stability sits at 20/100. weak operating results tend to show up in the stock quickly when the balance sheet is already doing work.
today's leverage is manageable. it still narrows your margin for error if operating pressure lasts.
between $1.8B of existing debt, a $1.1B acquisition, and a recent -1.9% quarterly margin, this is a stock where one bad operating stretch can overpower a lot of merger optimism.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
whether revenue and margins hold after Sun Country integration
that is the growth bridge implied by current estimates. if the deal slips or the combined business underdelivers, the forward setup changes fast.
risk
deal approval and closing timeline
the Sun Country acquisition still needs regulatory and stockholder approvals, with management targeting second-half 2026.
earnings
quarterly margin recovery
full-year EPS improved to $3.10, but the latest quarter ran at a -1.9% margin and lost $2.41 per share. that gap needs to narrow.
trend
whether the chart keeps outrunning the fundamentals
technical score 2 says price momentum is strong. the business still has a 5/100 predictability score. if the operating numbers do not catch up, sentiment has less support.
Analyst rankings
short-term outlook
average
momentum score 3 — the stock is moving with the market, not separating from it.
risk profile
average
stability score 3 — middle of the pack. not unusually safe, and not a place investors hide when they want calm.
chart momentum
top 20%
technical score 2 — the chart looks better than the business. in human-speak: traders see upside, fundamentals still need to earn it.
earnings predictability
5 / 100
earnings are hard to forecast here. the latest quarter is your reminder.
source: institutional data
Institutional activity
92 buyers vs. 118 sellers in 3q2025. total institutional holdings: 18.4M shares.
source: institutional data
Price targets
3-5 year target range
$32
$127
$91
current price
$80
target midpoint · 12% from current · 3-5yr high: $175 (+90% · 18% ann'l return)
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