$ALGT

Raymond James upgraded Allegiant Travel (ALGT) while cutting broader airline estimates, citing margin recovery and capacity flexibility. ALGT's share price is $82.32, down 6.47% YTD but up 32.69% over 1 year. Bulls highlight margin recovery and Sun Country acquisition, while bears point to recent weakness and net losses. The stock's P/S ratio is 0.8x, higher than peers but below fair value estimates.

Allegiant Travel Company (ALGT) completed its acquisition of Sun Country on May 13, reporting combined Q2 revenues of $943.5M, up 36.9% YoY. ALGT expects $140M in annual synergies within three years, but faces integration challenges and rising fuel costs. Q3 capacity is projected to decline, with adjusted operating margin between 1% and 3%.

Raymond James analyst Savanthi Syth cut earnings estimates for airlines due to surging jet-fuel prices, with US Gulf Coast prices up 39% quarter-to-date. She warned of a potential bankruptcy risk for JetBlue, while upgrading Allegiant (ALGT) to Strong Buy. Estimates for American Airlines (AAL) and Delta (DAL) were also revised downward.

U.S. airlines are expanding premium offerings, including first-class seats and lounges, due to high demand. JetBlue, Allegiant, and potentially Southwest are introducing new premium services. American Airlines plans to increase premium seats to 40% of its narrowbody fleet. Delta reports strong premium revenue growth, up 17% year over year in Q2. The shift may lead to higher economy fares as coach seats are reduced.

Allegiant Travel (ALGT) stock rose 2.8% in pre-market trading after Raymond James upgraded its rating to Strong Buy with a $116 price target, citing an excessive share price decline. The firm highlighted margin recovery potential, flexible capacity, and Sun Country Airlines acquisition as positive factors. The broader market was down, with S&P 500 and Nasdaq declining 0.2% and 0.6%, respectively.

Raymond James lowered airline estimates due to higher jet fuel price forecasts, upgrading Allegiant Travel (ALG) to Strong Buy. Shares rose over 2% premarket. The firm raised fuel price forecasts for 2026-2028, citing elevated refining margins. Allegiant's shares pulled back despite positive factors like margin recovery and Sun Country acquisition. U.S. domestic capacity growth forecast was raised to 2.3%. European airlines face mixed results, while Latin American demand remains strong.

Sun Country Airlines is ending its top-tier 'Plus' loyalty program by year-end, affecting customers who spend $10,000 annually or fly 10 qualifying flights. The change comes as Sun Country integrates with Allegiant Travel Co., its new owner. Allegiant plans to combine loyalty programs by mid-2027, preserving benefits and creating new rewards. The $1.5 billion acquisition was finalized in May 2024.

Allegiant Travel Company (NASDAQ: ALGT) said it will add a year-round nonstop route from Cincinnati/Northern Kentucky (CVG) to Orlando (MCO) starting Feb. 12, 2027. The airline cited introductory one-way fares as low as $49, with limited seats and dates. Allegiant also said it serves 23 nonstop destinations at CVG.

Allegiant Travel Company said it will launch nine new nonstop routes to six Florida airports for spring 2027, with tickets on sale at Allegiant.com. Seven routes run roughly mid-February to late April 2027. The only year-round addition is CVG to MCO starting Feb. 12, 2027. Allegiant cited peak leisure demand and noted unbundled fares and limited booking windows for some intro fares.

Allegiant Air will add seven new Florida routes linking Boston, Cincinnati, Providence, and Portsmouth with Orlando, Punta Gorda, Sanford, St. Petersburg, and Fort Lauderdale, with distances of 756 to 1,285 miles. The airline says most routes face little competition. The plan follows Allegiant’s May 2026 purchase of Sun Country for over $1.5 billion and includes a Sun Country rebrand and new “Allegiant First” premium seating.