Allegiant Travel Company (ALGT)

Over the past six months, Allegiant Travel Co.'s stock has increased by 66.39%, but it experienced a 9.55% decrease over the last 12 months. As of January 7, 2026, the share price was $92.95, a decline of 6.39% from January 8, 2025. Allegiant's definitive merger agreement to acquire Sun Country Airlines for approximately $1.5 billion is anticipated to generate approximately $140 million in annual cost and revenue synergies by the third year post-closing and be accretive to earnings per share a year after the deal's completion. BofA Securities upgraded Allegiant Travel Company's stock from Underperform to Neutral, citing stable capacity growth and cost control measures. In November 2025, Allegiant reported a robust 10.6% year-over-year increase in scheduled service passengers, alongside a 9.8% boost in departures and an improved load factor. The company also launched 30 new nonstop routes connecting 35 cities in November 2025.

Allegiant Travel Co.'s business model is designed to capitalize on seasonal demand patterns, aligning flight frequencies with peak travel periods. The company experiences seasonal fluctuations, including a "seasonal dip" in the third quarter of 2025, which contributed to negative margins. Management targets double-digit operating margins for Q4, despite facing "seasonal challenges." The company aims to increase aircraft utilization during peak leisure periods and dynamically adjust routes to capture emerging leisure trends.

Allegiant Travel Company (ALGT) is a leisure travel company based in Las Vegas, Nevada, operating in the Transportation sector and Airlines industry. It provides scheduled air transportation using a low-cost, low-utilization model, targeting leisure travelers in underserved U.S. cities. Its services include air transportation, ancillary products (baggage fees, seat assignments), third-party travel products (hotel bookings, rental cars), and fixed-fee contract air transportation. Allegiant also operates the Sunseeker Resort in Southwest Florida, featuring hotel rooms, meeting facilities, dining, and a golf course.

Allegiant primarily serves leisure travelers from underserved small and medium-sized cities across the continental United States, connecting them to popular leisure destinations. The announced acquisition of Sun Country Airlines is expected to expand Allegiant's international service, offering customers access to 18 international destinations across Mexico, Central America, Canada, and the Caribbean through Sun Country's network. The combined entity will offer over 650 routes.

Allegiant Travel Co. has engaged in initiatives to enhance its brand and offerings. In December 2025, the company partnered with Rocket Travel by Agoda to launch Allegiant Hotels, a new hotel-booking platform. Also in December 2025, Allegiant introduced "Altus Sol," a wine crafted for an elevated experience at 30,000 feet. In early December 2025, Allegiant offered Cyber Monday and Travel Tuesday deals with up to 40% off all routes. The acquisition of Sun Country Airlines could significantly impact Allegiant's brand reputation, potentially enhancing its market position as a leading leisure-focused U.S. airline with expanded routes and international service.

Allegiant Travel Company has significant institutional ownership, with 472 institutional owners holding a total of 22,531,790 shares. Major institutional shareholders include BlackRock, Inc., Vanguard Group Inc, T. Rowe Price Investment Management, Inc., Donald Smith & Co., Inc., IJR - iShares Core S&P Small-Cap ETF, Dimensional Fund Advisors Lp, American Century Companies Inc, Par Capital Management Inc, PRSVX - T. Rowe Price Small-Cap Value Fund, Inc., and State Street Corp. Par Investment Partners LP is the largest individual owner, owning 6.58 million shares, representing 35.96% of the company. Maurice J. Gallagher Jr. is also a significant individual owner. Institutional ownership accounts for approximately 85.3% of the company, while individual insiders hold about 14.7%.