Allegiant Travel Company (ALGT): NDR Takeaways

Research evidence excerpt

Equity Research

20 August 2026 | 9:12PM EDT

Allegiant Travel Company (ALGT): NDR Takeaways

Over the past two days (8/19 - 8/20), we hosted investor meetings with Allegiant in

New York City and Boston with Robert Neal (President and CFO) and Sherry Wilson

(Managing Director, Investor Relations and Sustainability).

With the stock down 27% since 2Q earnings, underperforming our US Airlines

coverage ex-ALGT down 18%, many investors we met with had questions around the

, but few had answers. One potential point of concern was the

pilot attrition in the company’s key Minneapolis market discussed on the 2Q

conference call. Management noted that they have seen an improvement in these

trends in recent weeks and no change to competitive dynamics since the merger

announcement.

Catherine O’Brien

+1(212)357-8285 |

Goldman Sachs & Co. LLC

David Kim

Goldman Sachs & Co. LLC

Radhika Shintre

+1(332)245-7982 |

Goldman Sachs India SPL

Focusing on the outlook for post-merger Allegiant, the tone on both the short-term

and longer-term was positive. In the shorter-term, management was upbeat on

demand and noted that the integration was off to a strong start with procurement

and co-location cost savings already underway. Over the longer-term, the team

discussed commercial opportunities across loyalty, product, network, and

technology in addition to how the company’s fleet will continue to drive its unique

low cost, low utilization model. We expect to hear more about these topics and new

initiatives at the company’s upcoming December Investor Day.

We continue to expect Allegiant’s acquisition of Sun Country to open network and

commercial opportunities that will drive higher-than-industry margins and EPS

growth over the medium-term, with profitability bolstered by an improved US

domestic competitive environment, particularly for leisure carriers. Further, with fuel

still volatile, the company’s fuel pass through in its charter and cargo businesses

provides relatively higher insulation to higher fuel prices than peers. We remain

Buy-rated on ALGT shares.

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