Allegiant Now Sees a Q2 Profit: Falling Fuel and Sun Country Merger Are Only Part of the Story

Allegiant Travel Company updated its Q2 2026 outlook on 30 June 2026, projecting a minimum of $1.25 adjusted EPS for the combined Allegiant–Sun Country entity, reversing a prior standalone loss guidance of ~$0.50. This turnaround stems from the $1.5 billion Sun Country acquisition finalized 13 May 2026, robust summer travel demand, and fuel costs near $4.20/gallon. Standalone TRASM is expected to rise over 23% year-over-year, while combined EPS exceeds prior standalone guidance by $1.75. The outlook, disclosed via SEC 8-K filing, assumes a 20% effective tax rate and 23.5 million diluted shares, with actual results pending the unreleased Q2 earnings report.