Allegiant Travel Company (ALGT) has reported a substantial 38.4% increase in share price over the past year, outperforming the Zacks Transportation – Airline industry growth of 19.1%. The company has seen a 24.3% upward revision in earnings per share (EPS) estimates for the current year and an 11.3% increase for 2027, reflecting strong broker confidence. In addition, Allegiant’s earnings exceeded the Zacks Consensus Estimate in three of its last four quarters, resulting in an average surprise of 23.6%.
On a strategic front, Allegiant announced plans to acquire Sun Country Airlines in a $1.5 billion cash-and-stock deal, aiming to create a combined leisure-focused airline serving 22 million passengers across nearly 175 cities and over 650 routes. The merger is expected to deliver $140 million in annual synergies within three years, while boosting earnings per share in the first year post-acquisition.
Furthermore, Allegiant ended 2025 with a 12.9% adjusted airline-only operating margin and reported a remarkable 99.9% controllable completion factor, underscoring its operational reliability amidst increasing travel demand.
