Allegiant introduces FY EPS outlook more than $6/shr

Allegiant Travel Company (NASDAQ: ALGT) has introduced a full-year 2026 earnings per share (EPS) outlook exceeding $6 per share, reflecting strong performance in the first quarter and a strategic focus on profitability. The company reported first-quarter 2026 adjusted diluted EPS of $3.77, a 78.7% increase year-over-year. This growth was driven by a 16.4% year-over-year increase in total revenue per available seat mile (TRASM), alongside a 14.9% adjusted operating margin—the highest first-quarter level since the onset of the pandemic.

Allegiant’s first-quarter results included record operating revenue of $732.4 million, up 9.6% year-over-year, with operating income of $81.1 million, representing a 24.8% increase compared to the prior year. The company also reported $39.3 million in co-brand credit card remuneration, up 8.9% year-over-year, and maintained a controllable completion rate of over 99.9%.

Looking ahead, Allegiant expects to navigate a higher fuel environment by flexing capacity to prioritize profitability over utilization. The company’s guidance for the second quarter anticipates a 6.5% reduction in capacity year-over-year, with adjusted operating margin projected between 0.0% and 2.0%. With a strong balance sheet and $1.2 billion in total liquidity, Allegiant is meet its full-year EPS target.