Allegiant Travel Company reported record first-quarter results on April 30, 2026, with revenue of $732.4 million, up 9.6% from the prior year despite a 5.9% capacity reduction. Total revenue per available seat mile (TRASM) reached $0.1431, a 16.4% increase, driven by load factors up 4 points and yields up 21%.
CEO Greg Anderson noted the adjusted operating margin of 14.9%, the highest for a first quarter since pre-COVID levels and up nearly 6 points year-over-year. Chief Commercial Officer Drew Wells attributed the performance to strong peak leisure demand and slight growth in peak-day capacity. Fixed-fee revenue rose 11.5% to $18.1 million.
The co-branded credit card, with over 600,000 cardholders, contributed more than 5% of annual revenue and saw 9% higher bank compensation year-over-year. Premium seating product Allegiant Extra exceeded expectations, boosting TRASM and loyalty.
Rising jet fuel costs, averaging $3.04 per gallon against an initial $2.60 guide, led to a 6.5% year-over-year cut in second-quarter available seat miles (ASMs), focused on off-peak and longer routes. Management projects a Q2 operating margin of 1% and $0.50 loss per share at $4.35/gal fuel, with unit revenue growth exceeding Q1.
Net income stood at $69.6 million, or $3.77 adjusted diluted EPS, up 78.7% year-over-year. Liquidity totaled $1.2 billion, with net debt at $858 million. The fleet ended at 123 aircraft after adding one 737 MAX and retiring one A320.
The Sun Country acquisition, approved and expected to close around May 13, targets $140 million in synergies. Updated combined guidance will follow closing.