Allegiant Travel Company, a leisure travel company, provides travel services and products to residents of under-served cities in the United States. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 1, 2024, it operated a fleet of 126 Airbus A320 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including baggage fees, advance seat assignments, travel protection products, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company operates a golf course. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.

Allegiant Travel appears to be a company with noticeably improved profitability, but still with a vulnerable balance sheet and less-than-ideal liquidity. Its valuation on multiples looks generally moderate: P/S of 0.82, P/B of 1.10, and P/FCF of 8.42 are below the industry median, which supports the idea of undervaluation; however, this is partially offset by weak liquidity and leverage. P/E and ROE/ROA/ROI are equal to zero, which usually indicates calculation quirks or the absence of a stable normalized base, so these metrics cannot be interpreted as a meaningful quality signal. At the same time, EPS of 3.77 and forward EPS of 3.40 are significantly above the industry median, which suggests that current earnings per share look stronger than the sector average. Revenue of 732 million and gross profit of 215 million also look healthy, and the gross margin of 25.69% remains fairly stable year over year. The operating margin of 2.05% is still low relative to the industry, but it has improved compared with previous periods, which is a positive sign of recovering efficiency. EBITDA of 139 million and operating income of 81 million confirm that the business is generating a positive operating result, although the margin of safety is still not very large. On the other hand, a current ratio of 0.91 and a quick ratio of 0.87 are below 1, meaning short-term liquidity remains weak and requires attention. Debt/Equity of 1.52 and long-term debt of 1.67 billion indicate a noticeable debt burden; at the same time, debt has declined slightly over recent periods, which mitigates the risk but does not eliminate it. Shareholders’ equity of 1.096 billion and net worth of 1.48 look acceptable, but they do not fully offset the dependence on borrowed financing. Net income of 42 million and positive operating income confirm that the company has returned to profitability, but the reported net margin is zero, which makes the quality of the bottom-line profitability less convincing. Dividend yield of 1.08% adds a small positive, but it is not large enough to materially support the valuation. Overall, the fundamentals support a moderately positive view of the stock, but due to weak liquidity, high leverage, and an imperfect operating margin, the target should be lowered slightly relative to the original forecast.

Allegiant Travel Company

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, незначительно вырос. Рынок не поддерживает быков.

Weak index, slightly up. The market does not support the bulls.

Средний индекс, значительно вырос. Увеличился приток средств в лонги.

Medium index, significantly up. The inflow of funds into longs has increased.

The stock appears undervalued on P/S, P/B, and P/FCF, but weak liquidity and significant debt limit its revaluation potential.

Expeditors International of Washington EXPD is scheduled to report its second-quarter 2026 results on Aug. 4, before market open.
The Zacks Consensus Estimate for EXPD’s second-quarter 2026 earnings has been revised upwards by 5.7% over the past 60 days to $1.68 per share. The consensus mark for earnings implies a 25.4% increase from second-quarter 2025 actuals. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $2.90 billion, indicating an increase of 9.5% from second-quarter 2025 actuals.
Expeditors has an encouraging earnings surprise history. The company’s earnings have outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.
Expeditors International of Washington, Inc. Price and EPS Surprise
Let’s see how things have shaped up for EXPD this earnings season.
Factors Influencing EXPD’s Q2 Performance
We expect EXPD’s performance in the to-be-reported quarter to have been significantly impacted by persistent macroeconomic uncertainty, which might have affected customer demand and shipment volumes.
The ocean freight and services segment is expected to have underperformed the Zacks Consensus Estimate for the second quarter of 2026, driven by excess shipping capacity and weak pricing and is anticipated to be pegged at $601.11 million, down 11% on a year-over-year basis.
On the contrary, the company’s segmental revenues are likely to have been boosted by growth in airfreight tonnage on exports, mainly from North and South Asia.
The Zacks Consensus Estimate for second-quarter Airfreight Services is pegged at $1.1 billion, indicating an increase of 16.4% from second-quarter 2025 actuals. The Zacks Consensus Estimate for Customs brokerage and other services revenues is currently pinned at $1.19 billion, indicating an 16.5% increase from second-quarter 2025 actuals.
What Our Model Says About EXPD
Our proven model does not predict an earnings beat for Expeditors International of Washington this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
EXPD has an Earnings ESP of 0.00% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Highlights of EXPD’s Q1 Results
EXPD posted first-quarter 2026 earnings of $1.71 per share, up 16.3% year over year and above the Zacks Consensus Estimate of $1.33. Revenues totaled $2.78 billion, up 4.4% from the year-ago quarter and ahead of the consensus mark of $2.58 billion.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Schneider National SNDR has an Earnings ESP of +1.50% and a Zacks Rank #2 at present. SNDR is scheduled to report second-quarter 2026 earnings on July 30.
The Zacks Consensus Estimate for second-quarter 2026 earnings has remained flat at 22 cents over the past 60 days. SNDR’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters (missing the mark twice and met the mark once in the remaining three quarters). The average miss is 17.97%.
Allegiant Travel Company ALGT has an Earnings ESP of +34.29% and a Zacks Rank #2 at present. ALGT is scheduled to report second-quarter 2026 earnings on Aug. 4
The Zacks Consensus Estimate for second-quarter 2026 earnings has been revised upwards by more than 100% over the past 60 days to 95 cents. ALGT’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters (missing the mark in the remaining quarter). The average beat being 21.94%.
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EXPD to Report Q2 Earnings: What's in the Offing for the Stock?

Delta Air Lines (DAL) came out with quarterly earnings of $1.56 per share, beating the Zacks Consensus Estimate of $1.51 per share. This compares to earnings of $2.1 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.31%. A quarter ago, it was expected that this airline would post earnings of $0.61 per share when it actually produced earnings of $0.64, delivering a surprise of +4.92%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Delta, which belongs to the Zacks Transportation - Airline industry, posted revenues of $17.67 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.53%. This compares to year-ago revenues of $16.65 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Delta shares have added about 28.2% since the beginning of the year versus the S&P 500's gain of 10.2%.
What's Next for Delta?
While Delta has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Delta was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.93 on $17.47 billion in revenues for the coming quarter and $5.78 on $66.23 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Allegiant Travel (ALGT), is yet to report results for the quarter ended June 2026.
This travel services company is expected to post quarterly earnings of $1.27 per share in its upcoming report, which represents a year-over-year change of +3.3%. The consensus EPS estimate for the quarter has been revised 88% higher over the last 30 days to the current level.
Allegiant Travel's revenues are expected to be $1 billion, up 45.1% from the year-ago quarter.
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Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Delta Air Lines (DAL) Tops Q2 Earnings Estimates

On June 30, 2026, Allegiant Travel Company (ALGT) unveiled an updated second-quarter 2026 guidance, stating that post the completion of the acquisition of Sun Country Airlines on May 13, 2026, the combined company is likely to have a collective impact on the second-quarter results from the date of deal-closure till June 30, 2026.
An upbeat guidance always acts as a positive indicator of the company’s prospects. Given this backdrop, the question that naturally arises is: Should investors buy, hold, or sell Allegiant stock now? A more in-depth analysis is needed to make that determination. Before diving into ALGT’s investment prospects, let’s take a glance at its financial numbers.
Allegiant’s Bullish Q2 Outlook
Allegiant now anticipates second-quarter 2026 adjusted earnings per share (EPS) for the combined entity to be at least $1.25. This marks an improvement on ALGT’s prior standalone guidance issued on April 30, 2026, which assumed an adjusted EPS to range from a loss of a penny to breakeven. The Zacks Consensus Estimate is currently pegged at a loss of 54 cents per share.
For the second quarter, average fuel cost per gallon is now anticipated to be around $4.20 per gallon compared with the prior view of $4.35 per gallon.
The encouraging guidance came on the back of the favorable demand environment witnessed at both airlines throughout the duration of the quarter, along with a reduction in fuel expense during June.
Notably, oil prices declined by almost 31% during the April-June 2026 period, with oil prices being down 20% in June 2026 alone. As fuel expenses represent a key input cost for any transportation player, a fall in oil prices bodes well for the bottom-line growth of airline stocks.
Apart from the aforesaid metrics, ALGT expects a 20% effective tax rate and 23.5 million diluted weighted average shares outstanding for the second quarter. On a standalone basis, Allegiant now anticipates second-quarter 2026 total revenue per available seat mile to increase more than 23% from a year earlier, exceeding its prior expectations.
Allegiant’s Price Performance
Shares of Allegiant have had a good time on the bourses of late, improving in double-digits so far this year. The encouraging price performance resulted in ALGT outperforming its industry as well as other industry players like Southwest Airlines Co. LUV) and Ryanair Holdings RYAAY in the same timeframe.
ALGT Stock’s YTD Price Comparison
Image Source: Zacks Investment Research
What Do Earnings Estimates Say for ALGT?
The negative sentiment surrounding Allegiant stock is evident from the fact that the Zacks Consensus Estimate for the second quarter of 2026 and the third quarter of 2026 earnings has been revised downward in the past 90 days. The consensus mark for 2026 earnings has also been projected downward in the past 90 days.
The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Image Source: Zacks Investment Research
Unattractive Valuation Picture for ALGT Stock
Allegiant looks expensive from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/S-F12M), ALGT is trading at a premium compared to the industry.
The stock has a forward 12-month P/S-F12M of 0.75X compared with 0.64X for the industry over the past five years. The company’s forward 12-month P/S-F12M ratio is also above the median level of 0.56X over the past five years. These factors indicate that the stock’s valuation is unattractive.
ALGT P/S Ratio (Forward 12 Months) Vs. Industry
Image Source: Zacks Investment Research
Not an Opportune Time to Buy ALGT Stock
Allegiant’s second-quarter 2026 earnings guidance have been aided by favorable demand environment witnessed at both airlines (allegiant and Sun Country) throughout the duration of the quarter along with reduction in fuel expense during June. We would like to remind investors that, as fuel expenses represent a key input cost for any transportation player, a fall in oil prices bode well for the bottom-line growth of airline stocks.
Despite an encouraging outlook, we advise investors not to buy ALGT stock now due to the headwinds it continues to face, such as fuel price volatility, rising labor and recovery costs and macro uncertainty, which can pressure margins and amplify near-term earnings swings for shareholders. Boeing production and regulatory constraints can disrupt fleet plans and delay expected cost and reliability benefits from new aircraft. Share price volatility, coupled with an unattractive valuation, acts as another concern.
We, therefore, advise investors to wait for a better entry point. For those who already own the stock, it will be prudent to stay invested. The company’s current Zacks Rank #3 (Hold) justifies our analysis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Should Investors Buy Allegiant Stock Post Bullish Q2 Guidance?

Allegiant Travel Company (ALGT) has unveiled an updated second-quarter 2026 guidance, stating the fact that post the acquisition completion of Sun Country Airlines on May 13, 2026, the combined company is likely to have a collective impact on the second-quarter results from the date of deal-closure till June 30, 2026.
To this end, Allegiant now anticipates second-quarter 2026 adjusted earnings per share (EPS) for the combined entity to be at least $1.25. This marks an improvement on ALGT’s prior standalone guidance issued on April 30, 2026, which assumed an adjusted EPS to range from a loss of a penny to breakeven. The Zacks Consensus Estimate is currently pegged at a loss of 54 cents per share.
For the second quarter, average fuel cost per gallon is now anticipated to be around $4.20 per gallon compared with the prior view of $4.35 per gallon.
The encouraging guidance came on the back of the favorable demand environment witnessed at both airlines throughout the duration of the quarter, along with a reduction in fuel expense during the month of June.
Notably, oil prices declined by almost 31% during the April-June 2026 period, with oil prices being down 20% during the month of June 2026 alone. As fuel expenses represent a key input cost for any transportation player, a fall in oil prices bodes well for the bottom-line growth of airline stocks.
Apart from the aforesaid metrics, ALGT expects a 20% effective tax rate and 23.5 million diluted weighted average shares outstanding for the second quarter. On a standalone basis, Allegiant now anticipates second-quarter 2026 total revenue per available seat mile (TRASM) to increase more than 23% from a year earlier, exceeding its prior expectations.
Shares of ALGT have performed well on June 30, 2026, closing the trading session at $117.60 per share, up 2.9% from the previous day's closing. The surge comes on the heels of the updated second-quarter 2026 announcement by Allegiant.
Zacks Rank and Stocks to Consider
ALGT currently carries a Zacks Rank #3 (Hold).
Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. EXPD and Teekay Tankers Ltd TNK.
EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors has an expected earnings growth rate of 11.9% for 2026. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.
Teekay Tankers Ltd currently sports a Zacks Rank #1.
TNK has an expected earnings growth rate of 98% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 10.2%.
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ALGT Issues Bullish Q2 View on Air-Travel Demand, Lower Fuel Costs

Allegiant Travel (ALGT) shares ended the last trading session 5.5% higher at $116.1. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 21.3% gain over the past four weeks.
The uptick followed an upgrade and a rise in target price by an analyst from Citigroup.driven by the anticipated synergies and long-term earnings potential of Allegiant's merger with Sun Country Airlines. The merger, completed earlier in 2026, is a significant consolidation move in the U.S. leisure airline space. Strategically, the deal appears highly complementary rather than transformational, as both carriers operate low-cost, leisure-oriented models with strong exposure to underserved and secondary markets. The combined network of nearly 175 cities and 650 routes gives Allegiant a broader geographic reach. It also strengthens the company’s ability to compete for discretionary leisure travelers without directly challenging the largest legacy carriers on premium business traffic.
This travel services company is expected to post quarterly loss of $0.54 per share in its upcoming report, which represents a year-over-year change of -143.9%. Revenues are expected to be $743.28 million, up 7.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Allegiant Travel, the consensus EPS estimate for the quarter has been revised 5.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ALGT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Allegiant Travel is part of the Zacks Transportation - Airline industry. Alaska Air Group (ALK), another stock in the same industry, closed the last trading session 1.1% higher at $53.86. ALK has returned 14.4% in the past month.
For Alaska Air, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.93. This represents a change of -152.3% from what the company reported a year ago. Alaska Air currently has a Zacks Rank of #3 (Hold).
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Strength Seen in Allegiant Travel (ALGT): Can Its 5.5% Jump Turn into More Strength?

For Immediate Release
Chicago, IL – June 3, 2026 – Today, Zacks Equity Research discusses American Airlines AAL, Copa Holdings CPA and Allegiant Travel Co. ALGT.
Industry: Airlines
Link: https://www.zacks.com/commentary/2930804/3-airline-stocks-to-watch-as-the-industry-grapples-with-headwinds
The ongoing tensions between the United States and Iran have resulted in a sharp rise in oil prices, a key input cost for airlines. The ongoing uncertainty over talks between them has repeatedly put the fragile ceasefire under strain. Stocks in the Zacks Transportation - Airline industry have been badly hit by this uncertain scenario that has resulted in multiple flight cancellations and disruptions to connectivity. Crude prices have moved sharply on headlines tied to the Strait of Hormuz, a critical shipping route
Oil prices have remained elevated, currently fluctuating between $90 and $95 per barrel. High labor costs are also hurting bottom-line growth. Despite these headwinds, the industry has shown resilience, particularly among companies focusing on growth strategies and operational efficiency. The upbeat air-travel demand witnessed during the Memorial Day weekend is also a positive for airline stocks. Notable players expected to withstand these challenges include American Airlines, Copa Holdings and Allegiant Travel Co.
About the Industry
The Zacks Airline industry players are engaged in transporting passengers and cargo to various destinations globally. Most operators maintain a fleet of multiple mainline jets in addition to several regional planes. Their operations are aided by the regional airline subsidiaries and third-party regional carriers.
Additionally, industry players utilize their respective cargo divisions to offer a wide range of freight and mail services. The players invest substantially to upgrade technology. The industry, apart from comprising legacy carriers, includes low-cost players. The well-being of companies in this group is linked to the health of the overall economy.
For example, the aviation space was one of the worst pandemic-hit corners, with passenger revenues taking a beating. However, air travel demand has improved from the pandemic lows, despite the current high oil price scenario.
Factors Relevant to the Industry's Fortunes
Surge in Fuel Costs – A Bane: The ongoing conflict in the Middle East has resulted in a sharp jump in oil prices. This northward movement in oil prices is naturally hurting the bottom line of airlines. This is because fuel expenses represent a key input cost for airlines. With most U.S. carriers having abandoned fuel hedging strategies, such an oil supply disruption has left them fully exposed to price spikes. This development may hurt the second-quarter earnings of airlines, particularly in the event of the conflict persisting.
Uptick in Labor Costs:The increase in expenses on the labor front represents another challenge for airlines. For example, at American Airlines, salaries and related costs have increased 10.7% year over year in the first quarter of 2026. With U.S. airlines grappling with labor shortages, the bargaining power of various labor groups has naturally increased. As a result, we have seen pay-hike deals being inked in the space. This is resulting in a spike in labor costs, limiting bottom-line growth in turn.
Upbeat Summer Travel – A Positive: Despite headwinds like high inflation, elevated fuel and labor costs, air-travel demand, particularly on the leisure front, remains healthy as exemplified by the upbeat Memorial Day weekend air travel scenario. In fact, passenger volumes, despite high air fares, are expected to remain strong during the entire summer season. For example, American Airlines expects record travel during the summer season (May 21-Sept. 8). During the period, the airline expects to fly 75 million passengers across 750,000 flights, smashing its previous record established in 2019.
Strong Financial Returns for Shareholders: With economic activities gaining pace from the pandemic lows, more and more companies are allocating their increasing cash pile by way of dividends and buybacks to pacify long-suffering shareholders. This underlines their financial strength and business confidence.
Among airlines, CPA’s board of directors approved a dividend hike of 6.2%, thereby raising its quarterly cash dividend to $1.71 per share ($6.84 annualized) from $1.61 ($6.44 annualized). The move reflects CPA’s intention to utilize free cash to enhance its shareholders’ returns.
Zacks Industry Rank Signals Dull Prospects
The Zacks Airline industry is a 23-stock group within the broader Zacks Transportation sector. The industry currently carries a Zacks Industry Rank #233, which places it in the bottom 9% of 245 Zacks industries.
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates murky near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate.
Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. The industry's earnings estimate for 2026 has decreased 36.1% on a year-over-year basis.
Before we present a few stocks from the industry that you may want to hold on to, let’s take a look at the industry’s recent stock market performance and the valuation picture.
Industry Surpasses Sector but Lags S&P 500
Over the past year, the Zacks Transportation - Airline industry has gained 23.2% compared with the S&P 500 composite’s rise of 31.2%. The broader sector has gained 22.1% in the said time frame.
Valuation Picture
The price/sales (P/S) ratio is often used to value airline stocks. The industry currently has a forward 12-month P/S of 0.57X compared with the S&P 500’s 5.27X. It is also below the sector’s forward-12-month P/S of 1.4X.
Over the past five years, the industry has traded as high as 0.88X, as low as 0.29X and at the median of 0.45X.
3 Airline Stocks to Monitor Now
American Airlines is based in Fort Worth, TX. Strong air travel demand, particularly on the leisure front, despite high fuel costs, is aiding AAL. Efforts to broaden its network are also praiseworthy.
The company’s high debt levels are worrisome. The carrier’s earnings have surpassed the Zacks Consensus Estimate in three of the past four quarters (missing the mark in the other quarter). The average beat is 2.6%. American Airlines currently carries a Zacks Rank #3 (Hold).
Copa Holdings, based in Panama City, Panama, currently carries a Zacks Rank #3. The company is benefiting from strong domestic air travel demand owing to factors like regional economic expansion, its ability to adapt to market trends, and focus on innovative strategies.
Despite the tough conditions, the airline demonstrated resilience. Copa Holdings’ earnings beat the Zacks Consensus Estimate in three of the past four quarters (missing the mark on the other occasion). The average beat is 6.5%. The Zacks Consensus Estimate for current and next-year earnings has been revised 0.7% and 4.7% upward over the past 60 days, respectively.
Allegiant Travel's unique business model, coupled with its low-cost nature, offers diversified revenue streams from leisure travel flights as well as multiple travel services and product offerings. Efforts to upgrade its fleet are praiseworthy as well. ALGT aims to end the second quarter of 2026 with a fleet size of 125.
ALGT’s earnings surpassed estimates in three of the last four quarters and missed the mark once. The average beat was 21.9%. Allegiant currently carries a Zacks Rank #3.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights American Airlines, Copa and Allegiant Travel

European carrier, Ryanair Holdings RYAAY,has unveiled its solid traffic numbers for April 2026, reflecting its four-month straight traffic growth at a stretch so far this year. As we know, higher traffic means more passengers and with travel bookings rising across the industry, passenger revenues at Ryanair should also rise, thereby contributing to the company’s top-line growth.
Higher traffic always acts as a positive indicator of the company’s prospects. Given this backdrop, the question that naturally arises is: Should investors buy, hold, or sell RYAAY stock now? A more in-depth analysis is needed to make that determination. Before diving into RYAAY’s investment prospects, let’s take a glance at its financial numbers.
Ryanair’s April Traffic Numbers Show Four-Month Straight Growth
The number of passengers transported on Ryanair flights was 19.3 million in April 2026, reflecting a 5% year-over-year increase. Apart from a year-over-year surge, RYAAY’s traffic in April was much more than the March reading of 15.8 million, the February reading of 13.3 million and the January reading of 12.7 million, highlighting continued momentum from the beginning of the year.
Ryanair’s load factor (percentage of seats filled by passengers) remained flat year over year as well as sequentially at 93% in April 2026, reflecting stable and consistent demand for the carrier’s services. However, it improved from the load factor of 92% reported in February 2026 and 91% reported in January 2026.
RYAAY operated more than 1,08,000 flights in April 2026. This marks an improvement from 88,000 flights operated in March 2026, 75,000 flights operated in February 2026 and 73,000 flights operated in January2026, reflecting expanded capacity to meet strong passenger demand.
We would like to remind investors that Ryanair carried 200.2 million passengers (traffic up 9% year over year) in its fiscal year ending March 2025, positioning itself as the first European airline to reach 200 million passengers in a single year. During fiscal 2026, RYAAY’s traffic grew 4% year over year to 208.4 million passengers.
Given the aforesaid backdrop, Ryanair has unveiled an encouraging traffic outlook for fiscal 2027 (concurrent with its fourth-quarter fiscal 2026 earnings release on May 18, 2026). RYAAY anticipates its fiscal 2027 traffic to grow by 4% to 216 million passengers.
Other Factors Working in Favor of RYAAY Stock
Ryanair’s fleet-modernization initiatives to cater to the improvement in travel demand are encouraging. The inclusion of modern planes in its fleet and the retirement of the old ones align with its environmentally friendly approach. During fiscal 2025, Ryanair took delivery of 30 new Boeing 737-8200 aircraft. The latest inclusions, apart from having all basic amenities, result in improved fuel efficiency. Concurrent with the fiscal fourth quarter of 2026 (ended March 31, 2026) earnings release, RYAAY announced that it has received all 210 Boeing 737-8200 aircraft. In May 2023, 300 new Boeing 737-MAX-10 aircraft orders were placed for delivery between 2027 and 2033. Ryanair expects these fuel-efficient MAX jets to generate substantial growth.
RYAAY has a solid balance sheet that helps it reward shareholders and make debt repayments. The low-cost carrier ended the fiscal fourth quarter of 2026 with cash and cash equivalents of $6.62 billion, and made €1.2 billion debt repayments, as of March 31, 2026. During fiscal 2026, RYAAY purchased (and canceled) some 2% of issued share capital (more than 20 million shares). A final dividend of €0.195 per share is payable in September 2026 (subject to AGM approval).
Long-Term Debt to Capitalization
Image Source: Zacks Investment Research
RYAAY’s Price Performance
Shares of RYAAY have declined in double digits so far this year. The disappointing price performance resulted in RYAAY underperforming the Zacks Airline industry in the said time frame. Additionally, RYAAY’s price performance looks unfavorable to that of other airline operators like Alaska Air Group, Inc. (ALK) and Allegiant Travel Company (ALGT) in the same timeframe.
RYAAY Stock’s YTD Price Comparison
Image Source: Zacks Investment Research
Headwinds Weighing on RYAAY Stock
Production delays at Boeing have been hurting the fleet-related plans of most airline companies, and it is no different for RYAAY. The company is actively in talks with Boeing leadership to speed up aircraft deliveries and has also visited Seattle at the beginning of January. Although B737 production is recovering from Boeing’s strike in late 2024, it is still slow to deliver sufficient aircraft ahead of the summer season of fiscal 2026. Additionally, Boeing expects the MAX-10 to be certified in mid-2026, followed by the delivery of the first 15 MAX-10s in Spring 2027 (with 300 of these fuel-efficient aircraft delivery due by March 2034).
Escalating operating expenses due to high staff costs and higher air traffic control fees are hurting Ryanair’s bottom line. During fiscal 2026, staff costs increased 6% year over year due to higher salaries and agreed pay increases. Airport and handling charges rose 5% year over year owing to traffic growth, higher landing, ground air traffic control and handling rates. Fuel costs rose 4% year over year. As a result, total operating expenses grew 6% year over year, owing to higher staff and other costs, which were in part due to Boeing delivery delays. This was partially offset by fuel hedge savings. High costs naturally put pressure on margins.
What Do Earnings Estimates Say for Ryanair?
The negative sentiment surrounding Ryanair stock is evident from the fact that the Zacks Consensus Estimate for the current quarter as well as for full-year earnings has been revised southward in the past 60 days.
Image Source: Zacks Investment Research
The favorable estimate revisions indicate brokers’ lack of confidence in the stock.
Time to Get Rid of Ryanair
Production delays at Boeing have been hurting the fleet-related plans of most airline companies, and it is no different for RYAAY. Escalating operating expenses due to high fuel costs, staff costs and higher air traffic control fees are likely to hurt Ryanair’s bottom line. High costs naturally put pressure on margins. Share price volatility continues to be another concern. Collectively, the aforesaid factors diminish RYAAY’s appeal as an investment at this juncture.
The negativity surrounding the stock outweighs the positives like the upbeat traffic scenario, fleet expansion efforts, solid balance sheet and consistent efforts to reward shareholders through dividends and share buybacks. So, the stock appears to be a risky bet for investors. The stock’s current Zacks Rank #5 (Strong Sell) justifies our analysis.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should Investors Buy RYAAY Post a Four-Month Straight Traffic Growth?

Allegiant Travel Company ALGT is strengthening its leisure-focused network strategy with the addition of eight new nonstop routes, primarily centered on Florida destinations. The expansion reinforces the carrier’s emphasis on connecting underserved small and mid-sized cities with popular vacation markets through low-cost, point-to-point service. By targeting routes with limited nonstop competition, the airline continues to differentiate itself from larger network carriers that typically prioritize hub-and-spoke operations.
The newly announced services also reflect ALGT’s confidence in sustained leisure travel demand heading into late 2026 and early 2027. Florida remains one of the strongest domestic leisure markets, and the airline appears to be capitalizing on resilient consumer demand for affordable sun-and-beach destinations despite broader industry cost pressures. Promotional one-way fares starting at $59, along with bonus loyalty points through the Allways Rewards program, are likely aimed at stimulating early bookings and improving load factors during the launch phase.
Strategically, the additions further expand Allegiant’s footprint in key Florida gateways such as Fort Lauderdale, St. Pete-Clearwater, Orlando-Sanford and Punta Gorda. The move should enhance network connectivity while supporting ancillary revenue opportunities from bundled travel products, baggage fees and vacation packages. These areas remain important contributors to the company’s profitability. The emphasis on nonstop flying also aligns with the airline’s cost-efficient operating model, which minimizes complexity and appeals to price-sensitive leisure travelers.
At the same time, the route expansion comes amid a challenging operating environment for the airline industry, including elevated labor and fuel costs. ALGT’s comments suggest that the carrier sees an opportunity to preserve low-fare availability as competitors adjust capacity or reduce service in certain markets. If demand trends remain stable, the new routes could support passenger traffic growth and strengthen the airline’s competitive position in the United States’ leisure travel segment.
ALGT‘s Share Price Performance
Allegiant’s shares have rallied 45.5% in a year compared with the Transportation - Airline industry’s 6.2% growth.
Image Source: Zacks Investment Research
ALGT’s Zacks Rank
ALGT currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. EXPD and International Seaways INSW.
EXPD currently carries a Zacks Rank #2(Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Expeditors has an expected earnings growth rate of 11.9% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.
INSW currently sports a Zacks Rank #1.
INSW has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 33.93%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Allegiant Accelerates Florida Expansion With Eight New Nonstop Routes

In trading on Wednesday, the U.S. Global Jets ETF is outperforming other ETFs, up about 5.9% on the day. Components of that ETF showing particular strength include shares of Alaska Air Group, up about 10.1% and shares of Allegiant Travel, up about 9.1% on the day.
And underperforming other ETFs today is the Portfolio Building Block Integrated Oil Gas Exploration & Production Index ETF, down about 1.6% in Wednesday afternoon trading. Among components of that ETF with the weakest showing on Wednesday were shares of Cenovus Energy, lower by about 2.7%, and shares of Exxon Mobil, lower by about 2.2% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Wednesday's ETF Movers: JETS, PBOG

Allegiant Travel Company’s ALGT decision to adopt Navan, Inc. NAVN reflects the airline’s increasing focus on operational efficiency and workforce mobility. Managing employee travel across training programs, maintenance assignments and network support functions can be highly complex for a fast-growing carrier. By centralizing these activities on a single AI-powered platform, Allegiant likely aims to reduce administrative bottlenecks, improve coordination and enhance responsiveness during operational disruptions or staffing shifts.
The partnership also signals a broader trend within the airline industry toward digital transformation of internal processes, not just customer-facing services. Traditionally, employee travel management at ALGT has relied heavily on manual coordination and fragmented booking systems. Navan’s integrated booking, payment and expense capabilities could help the company streamline workflows and improve cost visibility. They could also provide employees with a more seamless self-service experience, ultimately supporting productivity and employee satisfaction.
For Navan, securing ALGT as a client strengthens its positioning within the travel and expense management sector, particularly in serving complex enterprise operations. Airlines present a demanding use case due to their dynamic scheduling requirements and a large mobile workforce. Successfully supporting Allegiant’s operational travel needs could enhance Navan’s credibility with other transportation and logistics companies seeking modernized internal travel management solutions.
ALGT‘s Share Price Performance
Allegiant’s shares have rallied 30.9% in a year compared with the Transportation - Airline industry’s 8.4% growth.
Image Source: Zacks Investment Research
ALGT’s Zacks Rank
ALGT currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. EXPD and International Seaways INSW.
EXPD currently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors has an expected earnings growth rate of 11.9% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.
INSW currently sports a Zacks Rank #1.
INSW has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 33.93%.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	0.00 26.63
Price/Sales	0.82 1.47
P/B	1.10 2.65
P/FCF	8.42 19.57

Indicator	TTM Median
ROE	0.00 14.40
ROA	0.00 5.89
ROI	0.00 8.74
Net Worth	1.48 1.31
Quick Ratio	0.87 1.17
Current Ratio	0.91 1.58

Indicator	TTM Median
Net Profit Margin	0.00 7.36
Operating Margin	2.05 9.96
Gross Margin	25.69 32.60
Return on tangible equity	0.00 25.62

Indicator	TTM Median
EPS	3.77 0.64
EPS Forecast	3.40 0.62
Revenue	732.00M 181.00M
Gross Profit	215.00M —
EBITDA	139.00M —

Allegiant Travel Company

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