Las Vegas – November 04, 2026 -- Allegiant Travel Company (NASDAQ: ALGT) generated third-quarter 2026 operating revenue of $961.6M and an adjusted operating margin of 3.1%, up 3.4 percentage points year over year on a pro forma basis, even as fuel cost per gallon rose 55.5%. The carrier posted a GAAP loss of $0.56 per share and an adjusted diluted loss of $0.03 per share.
Pro forma unit revenue rises 28.3% on 5.7% less capacity
Record third-quarter TRASM reached 14.18 cents, up 28.3% year over year, while pro forma capacity fell 5.7%. Management cut capacity to protect margins in a high-fuel environment. Adjusted operating income totaled $29.8M, and adjusted EBITDA reached $110.9M, an 11.5% margin and 1.6 points better than the prior year on a pro forma basis. Adjusted loss before income taxes was $1.7M.
Pro forma comparisons assume the Sun Country acquisition and the Sunseeker Resort sale both closed on January 1, 2025. The Sun Country deal actually closed on May 13, 2026, so year-to-date results include the airline only from that date.
Ancillary and co-brand income climb while non-fuel unit costs rise 9.1%
Ancillary revenue per passenger rose 5.8% to $76.64 on a pro forma basis. Fixed fee revenue increased 7.9% to $83.6M. Allegiant Air co-brand credit card remuneration reached $42.1M, up 23.6% excluding Sun Country. CEO Greg Anderson also cited a new Expedia partnership as a source of new customers.
Adjusted operating CASM excluding fuel, special charges and cargo expenses rose 9.1% to 9.23 cents on a pro forma basis.
Pilot retention bonus of $267.0M drives $211.0M operating cash outflow
Cash used in operations totaled $211.0M in the quarter, including the $267.0M pilot retention bonus payment. Total available liquidity at September 30 was $1.1B, comprising $864.7M in cash and investments and $250.0M in undrawn revolving credit facilities. That figure excludes $336.8M of undrawn aircraft and pre-delivery payment financing commitments.
Consolidated total debt stood at $2.9B and net debt at $2.1B. The company paid $86.9M in debt principal during the quarter. Air traffic liability was $632.5M.
Capital expenditures totaled $135.7M, of which $114.6M went to aircraft and $21.1M to other items. Deferred heavy maintenance spending was $19.6M.
Allegiant exercises six 737-8 options, lifting firm Boeing orders to 56
In October, Allegiant exercised purchase options on six Boeing 737-8 aircraft for 2028 delivery. Firm orders under the Boeing agreement now total 56, of which 22 have been delivered, and 74 options remain.
Fourth-quarter peak-day exposure reaches 72% of ASMs
For the fourth quarter, 72% of available seat miles are scheduled on high-demand peak days. Fuel-efficient MAX aircraft are expected to account for 20% of combined capacity. Citing strong booking momentum, the company maintained its 2026 full-year adjusted EPS guidance of more than $6.00 for the combined Allegiant and Sun Country entity.
Anderson said the company is "building the nation's leading leisure carrier." Allegiant will present integration milestones and a long-term financial framework at its Investor Day on December 7.
Skytrax named Allegiant the best low-cost airline in North America for 2026, its third consecutive win. USA TODAY's 10Best Readers' Choice Awards ranked it first for both airline credit card and frequent flyer program.