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 Company has seen a noticeable improvement in revenue and an expansion of its balance sheet, but earnings quality and liquidity still do not support a sustainable re-rating. TTM revenue reached $943 million, which looks stronger than the industry median, and assets and equity rose to $6.44 billion and $1.78 billion, respectively, supporting financial stability. At the same time, TTM net income is effectively flat, while EPS and forward EPS look better than the industry median, but this does not offset the weak profitability at the ROE, ROA, and ROI levels, which remain materially below the industry. Operating margin of 4.91% and net margin of 0.90% indicate a limited ability to convert revenue into bottom-line profit, despite an acceptable gross margin of around 25%. The valuation picture is mixed: P/S, P/B, and P/FCF are below the median, suggesting a relatively moderate valuation, but P/E is more than twice the median, meaning the market is already pricing in significant expectations for earnings recovery. The debt burden remains high: debt/equity is noticeably above the industry, long-term debt has increased, and current and quick liquidity are below comfortable levels. This raises the company’s sensitivity to weak demand, rising costs, and potential volatility in the airline business. A positive factor is the growth in cash position and capital base, which partially mitigates credit risk. Dividend yield is present, but it is not significant enough to outweigh weak profitability and the debt burden. Overall, the fundamentals look better in terms of business scale and balance sheet than in terms of earnings quality, so a moderate conservative downward adjustment to the valuation is warranted.

Allegiant Travel Company

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, значительно вырос. Рынок на стороне быков.

Medium index, significantly up. The market is on the bulls' side.

Слабый индекс, незначительно вырос

Revenue and capital growth support ALGT, but weak profitability, high debt burden, and a high P/E limit the valuation upside.

European carrier, Ryanair Holdings RYAAY is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option. The negative sentiment surrounding RYAAY stock is evident from the fact that the Zacks Consensus Estimate for the third quarter of 2026 and the fourth quarter of 2026 earnings has been revised downward in the past 90 days. The consensus mark for 2026 and 2027 earnings has also been projected downward in the same time frame.
The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Given this backdrop, the question now arises whether it is worth buying, holding, or selling the Ryanair stock at current prices. Let us delve deeper to find out.
Headwinds Bothering RYAAY Stock
Concurrent with the August traffic numbers on Sept. 2, 2026,Ryanair unveiled a disappointing traffic outlook for fiscal 2027. Ryanair reduced its fiscal 2027 traffic forecast from 216 million to 214 million passengers to minimize the company’s exposure to unhedged high fuel prices during the upcoming winter months (November 2026 to March 2027). RYAAY is expecting traffic to be flat year over year between November 2026 and March 2027.
RYAAY anticipates this winter schedule trimming of traffic outlook should also reduce the company’s winter losses by an estimated €70 million to €100 million. Management also assumes that high unhedged fuel costs this winter imply short-haul airfares to rise significantly across the sector.
Despite Ryanair’s encouraging monthly traffic numbers so far this year, a downbeat guidance always acts as a negative indicator on the company’s prospects.
Apart from the aforesaid trimmed fiscal outlook, RYAAY continues to grapple with production delays at Boeing and escalated operating expenses. 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 continues to expect the MAX-10 to be certified in late summer 2026, followed by the delivery of the first 15 MAX-10s in Spring 2027 (with 300 of these fuel-efficient aircraft deliveries due by March 2034).
Escalating operating expenses due to high staff costs and higher air traffic control fees are hurting Ryanair’s bottom line. Total operating expenses increased 11% year over year during the first quarter of fiscal 2027. Fuel and oil costs rose 16% year over year, as the price of the company’s 20% unhedged fuel more than doubled during the quarter. Higher environmental taxes and a 6% increase in flight hours added pressure. Depreciation climbed 21% from the year-ago reported quarter, reflecting 29 additional Boeing 737-8200 aircraft, greater utilization and higher maintenance provisions. Route charges rose 8%, while maintenance, materials and repair expenses increased 30% because of fleet growth, labor inflation and greater aircraft usage. High costs naturally put pressure on margins.
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 compared 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
Unattractive Valuation Picture for RYAAY Stock
Ryanair looks expensive from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/S-F12M), the company is trading at a premium compared to the industry.
The stock has a forward 12-month P/S-F12M of 1.50X compared with 0.52X for the industry over the past five years. These factors indicate that the stock’s valuation is unattractive.
RYAAY P/S Ratio (Forward 12 Months) Vs. Industry
Not an Opportune Time to Buy Ryanair Stock
High unhedged fuel costs are acting as a bane for Ryanair’s growth prospects. The upward movement in oil prices (all thanks to the ongoing global uncertainty) is naturally hurting the bottom line of airlines because fuel expenses represent a key input cost for airlines. With most U.S. carriers having abandoned fuel hedging strategies, such oil supply disruption has left them fully exposed to price spikes.
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 #4 (Sell) justifies our analysis.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Ryanair EPS Estimates Southbound: Should You Avoid the Stock?

European carrier, Ryanair Holdings RYAAY, has unveiled its disappointing traffic outlook for fiscal 2027, concurrent with its August traffic release on Sept. 2, 2026.
A downbeat guidance always acts as a negative indicator on 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.
RYAAY’s Trimmed Traffic Outlook for Fiscal 2027
Concurrent with the August traffic numbers,Ryanair unveiled a disappointing traffic outlook for fiscal 2027. The company reduced the fiscal 2027 traffic forecast from 216 million to 214 million passengers to minimize the company’s exposure to unhedged high fuel prices during the upcoming winter months (November 2026 to March 2027). RYAAY is expecting traffic to be flat year-over-year during the November 2026 to March 2027 period.
RYAAY anticipates this winter schedule trimming of traffic outlook should also reduce the company’s winter losses by an estimated €70 million to €100 million. Management also assumes that high unhedged fuel costs this winter imply short-haul airfares will likely need to rise significantly across the sector.
We would like to remind investors that Ryanair carried 200.2 million passengers (traffic up 9% year over year) in the fiscal year ending March 2025, positioning itself as the first European airline to reach 200 million passengers in a single year. As a result, RYAAY became the world’s leading low-fare airline in terms of passenger traffic, with low fares and reduced costs acting as the main catalyst. During fiscal 2026, RYAAY’s traffic grew 4% year over year to 208.4 million passengers.
Given this backdrop, we await further updates during the company’s second-quarter fiscal 2027 results, expected to be released in November 2026.
Ryanair’s Year-to-Date Traffic Numbers
Ryanair reported solid traffic numbers for August 2026, driven by upbeat air-travel demand. The number of passengers transported on Ryanair flights was 22.2 million in August 2026, reflecting a 6% year-over-year increase.
Apart from a year-over-year surge, RYAAY’s traffic in August came in line with the July reading of 22.2 million and has surpassed the June reading of 21.2 million, May reading of 20.7 million, April reading of 19.3 million, 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 remained flat year over year as well as sequentially at 96% in August 2026, reflecting stable and consistent demand for the carrier’s services. It also improved from the load factor of 95% reported in June and May 2026, 93% reported in April and March 2026, 92% reported in February 2026 and 91% reported in January 2026.
RYAAY operated more than 1,20,500 flights in August 2026. However, more than 400 flights were canceled due to Mt. Etna volcanic eruptions.
RYAAY operated more than 1,20,800 flights in July 2026. This marks an improvement from 1,16,800 flights operated in June 2026, 1,14,000 flights operated in May 2026, 1,08,000 flights operated in April 2026, 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.
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 aligns 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.
RYAAY has a solid balance sheet, which helps it reward shareholders and make debt repayments. The low-cost carrier ended first-quarter fiscal 2027 with cash and cash equivalents of $4.34 billion. The company repaid €1.3 billion of debt during the reported quarter, including its final €1.2 billion bond in May, leaving the group debt-free apart from limited remaining obligations.
Long-Term Debt to Capitalization
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 compared 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
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 continues to expect the MAX-10 to be certified in late summer 2026, followed by the delivery of the first 15 MAX-10s in Spring 2027 (with 300 of these fuel-efficient aircraft deliveries due by March 2034).
Escalating operating expenses due to high staff costs and higher air traffic control fees are hurting Ryanair’s bottom line. Total operating expenses increased 11% year over year during the first quarter of fiscal 2027. Fuel and oil costs rose 16% year over year, as the price of the company’s 20% unhedged fuel more than doubled during the quarter. Higher environmental taxes and a 6% increase in flight hours added pressure. Depreciation climbed 21% from the year-ago reported quarter, reflecting 29 additional Boeing 737-8200 aircraft, greater utilization and higher maintenance provisions. Route charges rose 8%, while maintenance, materials and repair expenses increased 30% because of fleet growth, labor inflation and greater aircraft usage. 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.
The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Image Source: Zacks Investment Research
Time to Get Rid of Ryanair
High unhedged fuel costs are acting as a bane for Ryanair’s growth prospects. The upward movement in oil prices (all thanks to the ongoing global uncertainty) is naturally hurting the bottom line of airlines because fuel expenses represent a key input cost for airlines. With most U.S. carriers having abandoned fuel hedging strategies, such oil supply disruption has left them fully exposed to price spikes.
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 remain 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 #4 (Sell) justifies our analysis.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Does RYAAY's Bearish FY27 Traffic Outlook Justify a Sell Decision Today?

In a bid to broaden its network, Allegiant Travel Company (ALGT) is introducing two new year-round nonstop routes from Flint Bishop International Airport (FNT) to Orlando International Airport (MCO) and Southwest Florida International Airport (RSW). All new routes are expected to be available from late winter 2027.
The year-round new routes between FNT and Orlando, FL, via MCO should start from Feb. 10, 2027; and between FNT and Fort Myers, FL, via RSW should start from Feb. 11, 2027, with introductory one-way fares as low at $69.
To meet growing demand, Allegiant is also introducing flights from FNT to two existing routes: Sarasota Bradenton International Airport (SRQ) and St. Pete-Clearwater International Airport (PIE).
Starting Feb. 10, 2027, Allegiant plans to fly on Wednesday, Friday and Monday between FNT and Sarasota, FL, via SRQ. Between FNT and St. Pete-Clearwater, FL, via PIE, Allegiant plans to fly on Thursday, Sunday and Tuesday, starting Feb. 11, 2027.
Drew Wells, Allegiant's chief commercial officer, stated, "We're pleased to expand service between Michigan and Florida with these new routes, giving travelers even more convenient access to the destinations they want to visit most." Wells further stated, "Combined with added frequencies in several markets, these nonstop, year-round flights provide customers with greater flexibility and value when planning their travel."
ALGT is focused on expanding its network and strengthening its presence in the travel industry by offering budget-friendly nonstop services between cities. The inclusion of these new routes is expected to enhance this Zacks Rank #3 (Hold) stock position in the airline industry globally. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Route Expansion Plans of Other Airline Companies
ALGT is not the sole U.S. airline to expand its international network. Recently, Delta Air Lines DAL is strengthening its presence in Austin by launching its first-ever nonstop service between Austin-Bergstrom International Airport and Paris-Charles de Gaulle, starting March 27, 2027. The daily summer-season service will be operated on Airbus A330-900neo aircraft, giving Austin travelers direct access to Paris and one-stop connectivity to nearly 70 destinations across Europe, India and Africa through Delta Air Lines’ joint venture with Air France-KLM.
United Airlines Holdings, Inc. (UAL) recently announced the addition of 10 new international cities and three new routes across Europe and Asia, marking UAL’s largest international network expansion in its history and the launch of the newest international aircraft in its fleet, the 'Born to Explore' A321XLR.Beyond the 10 new cities, UAL is introducing new flights from Los Angeles to Osaka, Japan; Washington, D.C. to Milan, Italy; Denver to Paris; and plans to resume service from San Francisco to Tel Aviv, Israel.
The aforesaid announcement was done at an event at Newark Liberty International Airport.
Alaska Air (ALK) is expanding its international footprint from Seattle with new nonstop seasonal service to Athens and Paris, reinforcing its position as Seattle’s largest international carrier. The Athens service will begin on May 12, 2027, operating three times weekly through October, while Paris service will start on May 25, 2027, with five weekly flights over the same period. The new routes are expected to provide travelers in the Pacific Northwest with more convenient access to key European destinations.
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Allegiant to Launch Two New Nonstop Flights to Florida Destinations

Key Points
The U.S.-Iran war has raged for six months now, appearing to either worsen or, at best, turn into a stalemate.
That may sound like bad news for airline stocks, but soaring jet fuel prices have become a manageable issue.
Plus, for Delta Air Lines and United Airlines, the "premiumization" trend is helping to keep demand high.
The Iran war has been going on for six months, with seemingly no end in sight. In the best-case scenario, the situation turns into a stalemate. Worst case, tensions and conflict escalate. Either way, it's not looking good for the Strait of Hormuz fully opening to shipping traffic.
With this, crude oil prices appear primed to remain elevated, which means jet fuel prices will remain high. Is this a sign to get out of airline stocks? Not necessarily. In large part, an industry trend has indirectly helped to lessen the impact of this major headwind.
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Rising jet fuel prices lead to differing outcomes for the airlines
When the conflict started, shares in major and low-cost airlines alike experienced a sharp pullback. That's unsurprising, as soaring jet fuel prices typically reduce airlines' profitability, even when they raise ticket prices in response. Worse yet, the conflict served as the final nail in the coffin for one particular low-cost airline.
On May 2, already-bankrupt Spirit Airlines completely suspended operations. Yet while some airlines have struggled with this headwind, for many other carriers, both low-cost and legacy, it's become a manageable issue.
Premiumization proves key to legacy carrier resilience
For low-cost carrier Allegiant (NASDAQ: ALGT), strategies like reducing off-peak flying, in tandem with higher ticket prices, have helped mitigate rising fuel costs. However, even after bouncing back during the summer, shares in this particular low-cost carrier have coughed back these gains.
In contrast, shares of United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) have bounced back, with Delta trading above pre-war price levels. Why? These carriers have both raised prices to offset high fuel costs and have leaned into "premiumization," or a greater focus on affluent travelers, resulting in increased demand for premium tickets, making up for weakening demand from economy-tier passengers.
While the ongoing conflict could mean further uncertainty for low-cost carriers and for legacy carriers benefiting less from premiumization, like American Airlines, barring major changes to their respective financial performances, I wouldn't view the Iran war as a reason to sell United or Delta shares.
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Should You Dump Airline Stocks With the Iran War Still Simmering?

Allegiant Travel Company ALGT closed its acquisition of Sun Country on May 13, giving investors their first look at the combined operation in the second quarter. The early results showed more scale, broader revenues and a larger integration workload.
Management expects at least $140 million of annual run-rate synergies within three years of closing. Reaching that target will depend on combining systems, procurement and network planning while managing fuel, labor and balance-sheet pressures.
ALGT Adds Sun Country to a Broader Network
The combination expands Allegiant’s leisure-focused platform across nearly 175 cities and 650 routes. Sun Country adds scheduled passenger service, charter flying and cargo operations, broadening the revenue base and giving the company more ways to flex capacity around demand.
Integration is already moving beyond ownership. Cross-brand flight search is live and supplier consolidation is underway. Alaska Air Group, Inc. ALK offers a useful industry reference point because its Alaska-Hawaiian combination reached a single passenger service system in the second quarter, showing how airline integration continues well after closing.
Allegiant Q2 Shows Early Consolidation Scale
Sun Country contributed $167.3 million of revenues from the May 13 close through quarter-end. Consolidated second-quarter revenues rose 36.9% year over year to $943.5 million, while adjusted operating income reached $87.1 million and adjusted operating margin was 9.2%.
Allegiant Travel Company Revenue (TTM)
The consolidated numbers also show the mix Sun Country brings. During the post-closing period, it contributed $27.6 million of cargo revenues and $31.2 million of fixed-fee contract revenues, adding contracted flying alongside Allegiant’s scheduled leisure model.
ALGT Targets $140M in Annual Run-Rate Synergies
Management expects at least $140 million of annual run-rate synergies within three years of the transaction close. The integration plan includes network optimization and supplier consolidation, while a transition plan for a single operating certificate has been submitted to the Federal Aviation Administration.
The target matters because the benefits are not automatic. Systems integration, fleet and network coordination and organizational changes can take time, and the company’s risk disclosures acknowledge that expected savings or growth could be delayed or cost more than planned.
Allegiant Integration Raises Debt and Cost Pressure
Consolidated debt ended June at $2.8 billion, including $546.8 million of debt and finance lease obligations attributable to Sun Country. Net debt was $1.7 billion. Allegiant also expects roughly $850 million of 2026 capital expenditures across aircraft, deferred heavy maintenance and other airline spending.
Fuel adds another constraint. The consolidated average fuel cost was $4.14 per gallon in the second quarter, up 71.1% year over year. JetBlue Airways Corporation JBLU faced a similar fuel shock, reporting a $4.23 average fuel price and using commercial and capacity actions to recover part of the increase.
ALGT Capacity Discipline Shapes the Near-Term Test
Management expects third-quarter system capacity to decline about 6.5% year over year and scheduled-service capacity to fall roughly 5.5%. Adjusted operating margin is projected between 1% and 3%, with adjusted earnings expected between a loss of $1 per share and breakeven.
The company expects third-quarter unit revenue growth to remain roughly in line with standalone Allegiant’s 24.6% second-quarter increase. Preserving peak-period flying while trimming weaker off-peak capacity is central to supporting revenue quality as integration work continues.
ALGT Signals Back the Theme With Caveats
The Sun Country deal gives Allegiant more scale and revenue diversity, but the investment case now depends on translating integration milestones into measurable savings without allowing fuel, labor or capital needs to overwhelm those benefits.
ALGT currently carries a Zacks Rank #3 (Hold), with a Value Score of A, a Growth Score of B, a Momentum Score of F and a VGM Score of B. The A and B grades are favorable, while the F Momentum Score is the weakest. Combined with Rank #3, the mix supports a measured near-term view as integration execution develops. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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ALGT Targets $140M in Synergies as Sun Country Integration Begins

Allegiant Travel Company ALGT shares have plunged 16.6% in the past four weeks even as second-quarter adjusted earnings sharply exceeded expectations and standalone unit revenue reached a quarterly record.
The pullback puts the focus on whether better revenue productivity can outweigh volatile fuel costs, Sun Country integration demands, higher debt and continued capacity discipline.
ALGT's Q2 Beat Shows Earnings Resilience
Second-quarter adjusted earnings of $2.19 per share increased 78% year over year and beat the Zacks Consensus Estimate of $1.27 by 72.4%. Standalone Allegiant revenues rose 16.1% to a record $776.2 million.
Allegiant Travel Company Price and EPS Surprise
Standalone total revenue per available seat mile, or TRASM, increased 24.6% to a record 14.42 cents despite a 6.8% capacity reduction. Peak-period scheduling and commercial initiatives helped lift revenue productivity even with fewer available seat miles.
Allegiant's Revenue Mix Broadens After the Deal
Consolidated passenger revenues increased 33.1% to $822.5 million, third-party product revenues rose 36% to $45.8 million and fixed-fee contract revenues climbed 168.7% to $45.7 million.
Sun Country contributed $167.3 million of consolidated revenues from the May 13 acquisition close through quarter-end, including $27.6 million of cargo revenues. The broader mix adds contracted and cargo exposure alongside Allegiant's scheduled leisure business.
ALGT's Costs and Debt Keep Pressure Elevated
Total operating expenses increased 21.9% to $922.4 million, while aircraft fuel expense jumped 85.6% to $307.7 million. The consolidated average fuel cost rose 71.1% to $4.14 per gallon. Total debt ended June at $2.8 billion and net debt was $1.7 billion.
Fuel pressure is not unique to Allegiant. JetBlue Airways Corporation JBLU reported a second-quarter average fuel price of $4.23 per gallon, about 76% higher year over year. Alaska Air Group ALK reported an economic fuel cost of $4.43 per gallon, up 85%, showing the industry-wide sensitivity to fuel.
Allegiant's Capacity Cuts Test Demand Quality
For the third quarter, management expects system capacity to decline about 6.5% year over year and scheduled-service capacity to fall roughly 5.5%. Adjusted operating margin is projected between 1% and 3%.
Management expects combined-company unit revenue growth to be roughly in line with standalone Allegiant's 24.6% second-quarter increase. That makes pricing and demand quality important as the company trims off-peak flying while preserving peak-period capacity.
ALGT Valuation Is Not Yet a Clear Bargain
ALGT trades at 0.6X forward 12-month sales compared with 0.5X for the Zacks sub-industry. The stock's multiple is also in line with its five-year median of 0.6X.
The company's five-year forward sales range extends from 0.2X to 2.1X. The recent decline has lowered the share price, but the current multiple remains near the middle of its own historical valuation range rather than at an obvious extreme discount. That leaves operating execution more important than relying on multiple expansion.
ALGT Signals Mix Value With Weak Momentum
The 16.6% four-week decline has lowered the share price, but operating execution remains central. Record unit revenue and broader revenue sources are positives, while fuel volatility, integration work, debt and lower planned capacity keep the investment setup balanced.
ALGT currently carries a Zacks Rank #3 (Hold), with a Value Score of A, a Growth Score of B, a Momentum Score of F and a VGM Score of B. Within the Style Score hierarchy, A and B are favorable grades while F is the weakest. Combined with the #3 Rank, the signals support a selective rather than aggressive stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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ALGT Dips 16.6% in a Month as Airline Risks Challenge the Bull Case

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Melco Resorts & Entertainment Limited MLCO: This company which develops, owns and operates casino gaming and entertainment casino resort facilities primarily in Asia, has seen the Zacks Consensus Estimate for its current year earnings increasing 96% over the last 60 days.
Melco Resorts & Entertainment Limited Price and Consensus
China Yuchai International CYD: This company which primarily manufactures and sells diesel engines for medium-duty trucks in China, has seen the Zacks Consensus Estimate for its current year earnings increasing 37.2% over the last 60 days.
China Yuchai International Limited Price and Consensus
Harmony Gold HMY: This company which conducts underground and surface gold mining with operations principally concentrated in South Africa, has seen the Zacks Consensus Estimate for its current year earnings increasing 17.8% over the last 60 days.
Harmony Gold Mining Company Limited Price and Consensus
Harmony Gold Mining Company Limited price-consensus-chart | Harmony Gold Mining Company Limited Quote
Eni E: This company which is among the leading integrated energy players in the world, has seen the Zacks Consensus Estimate for its current year earnings increasing 8.4% over the last 60 day.
Eni SpA Price and Consensus
Kimball Electronics KE: This company which operates as a contract manufacturer of durable electronics for the medical, automotive, industrial and public safety markets, has seen the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days.
Kimball Electronics, Inc. Price and Consensus
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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New Strong Buy Stocks for August 18th

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Wednesday, shares of Allegiant Travel Company (Symbol: ALGT) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $84.67 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 68.1. A bullish investor could look at ALGT's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ALGT shares:
Looking at the chart above, ALGT's low point in its 52 week range is $53.6966 per share, with $123.63 as the 52 week high point — that compares with a last trade of $84.44.
Further ALGT Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Allegiant Travel Enters Oversold Territory (ALGT)

European carrier, Ryanair Holdings RYAAY has unveiled its solid traffic numbers for July 2026, reflecting its seven-month straight traffic growth 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 July Traffic Numbers Show Four-Month Straight Growth
The number of passengers transported on Ryanair flights was 22.2 million in July 2026, reflecting a 7% year-over-year increase. Apart from a year-over-year surge, RYAAY’s traffic in July was much more than the June reading of 21.2 million, May reading of 20.7 million, April reading of 19.3 million, 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 remained flat year over year at 96% in July 2026, reflecting stable and consistent demand for the carrier’s services. It also improved from the load factor of 95% reported in both the months of June and May 2026, 93% reported in April and March 2026, 92% reported in February 2026 and 91% reported in January 2026.
RYAAY operated more than 1,20,800 flights in July 2026. This marks an improvement from 1,16,800 flights operated in June 2026, 1,14,000 flights operated in May 2026, 1,08,000 flights operated in April 2026, 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. As a result, RYAAY is now the world’s leading low-fare airline in terms of passenger traffic, with low fares and reduced costs acting as the main catalyst. During fiscal 2026, RYAAY’s traffic grew 4% year over year to 208.4 million passengers. RYAAY continues to anticipate 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 aligns with its environmentally friendly approach. Between March 1999 and March 2025, Ryanair took delivery of 532 Boeing 737NG aircraft, one Boeing 737-700 aircraft and 176 new Boeing 737-8200s under its contracts with Boeing and disposed of 122 Boeing 737NG aircraft, including 77 lease hand-backs. 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 fourth quarter of fiscal 2026 (ended March 31, 2026) earnings release, RYAAY received all 210 Boeing 737-8200 aircraft delivered. 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, which helps it reward shareholders and make debt repayments. The low-cost carrier ended first-quarter fiscal 2027 with cash and cash equivalents of $4.34 billion. The company repaid €1.3 billion of debt during the reported quarter, including its final €1.2 billion bond in May, leaving the group debt-free apart from limited remaining obligations.
Long-Term Debt to Capitalization
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
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. RYAAY 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 continues to expect the MAX-10 to be certified in late summer 2026, followed by the delivery of the first 15 MAX-10s in Spring 2027 (with 300 of these fuel-efficient aircraft due for delivery by March 2034).
Escalating operating expenses due to high staff costs and higher air traffic control fees are hurting Ryanair’s bottom line. Total operating expenses increased 11% year over year during the first quarter of fiscal 2027. Fuel and oil costs rose 16% year over year, as the price of the company’s 20% unhedged fuel more than doubled during the quarter.
Higher environmental taxes and a 6% increase in flight hours added pressure. Depreciation climbed 21% from the year-ago reported quarter, reflecting 29 additional Boeing 737-8200 aircraft, greater utilization and higher maintenance provisions. Route charges rose 8%, while maintenance, materials and repair expenses increased 30% because of fleet growth, labor inflation and greater aircraft usage. 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 downward in the past 90 days.
The unfavorable 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 remain 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 Seven-Month Straight Traffic Growth?

Allegiant Travel Company ALGT reported second-quarter 2026 adjusted earnings of $2.19 per share, up 78% year over year and 72.4% above the Zacks Consensus Estimate of $1.27. Strong standalone Allegiant results and roughly seven weeks of Sun Country contributions supported the earnings beat.
Quarterly revenues rose 36.9% to $943.5 million but missed the consensus mark of $1.03 billion by 8.4%. Standalone Allegiant set a quarterly record for total revenue per available seat mile or TRASM, which climbed 24.6% year over year to 14.42 cents.
Allegiant Travel Company Price, Consensus and EPS Surprise
ALGT's Revenue Mix Broadens
Passenger revenues increased 33.1% year over year to $822.5 million and represented the largest part of the top line. Third-party products revenues rose 36% to $45.8 million, while fixed-fee contract revenues surged 168.7% to $45.7 million.
Cargo revenues were $27.6 million, reflecting Sun Country's contribution following the May 13 acquisition closing. Sun Country generated $167.3 million of consolidated revenues during the post-closing period, while standalone Allegiant revenues advanced 16.1% to a record $776.2 million.
Allegiant's Unit Revenue Sets a Record
Standalone Allegiant delivered its record revenues despite a 6.8% reduction in capacity. Management attributed the performance to strong leisure demand, peak-period scheduling and progress across commercial initiatives.
Cobrand credit card remuneration increased 23.6% to $41.2 million. The company also began distributing flights through Expedia, giving Allegiant access to new customers while retaining its direct sales channels. Management said the partnership accounted for roughly 3% of bookings shortly after its July launch.
ALGT's Costs Rise on Fuel and Integration
Total operating expenses increased 21.9% to $922.4 million. Aircraft fuel expenses climbed 85.6% to $307.7 million, with the consolidated average fuel cost per gallon rising 71.1% to $4.14.
Adjusted operating income totaled $87.1 million, producing an adjusted operating margin of 9.2%. Standalone Allegiant's adjusted margin improved 40 basis points to 9%, even as its fuel price per gallon increased 73%. Adjusted operating cost per available seat mile, excluding fuel, special charges and cargo expenses, was 8.19 cents.
Allegiant's Liquidity Supports Integration
Allegiant ended June with $1.3 billion of available liquidity, including $1.1 billion of cash and investments and $250 million of undrawn revolving credit facilities. Consolidated cash from operations totaled $46 million during the second quarter.
Total debt was $2.8 billion, including $546.8 million attributable to Sun Country, while net debt stood at $1.7 billion. The company issued $650 million of 7.125% senior secured notes due 2031 and used part of the proceeds to repurchase $377.5 million of notes due in 2027.
ALGT's Outlook Reflects Capacity Discipline
For the third quarter of 2026, management expects system capacity to decline roughly 6.5% year over year, with scheduled-service capacity down about 5.5%. The adjusted operating margin is projected to be between 1% and 3%, while adjusted results are expected to range from a loss of $1 per share to breakeven.
Fuel cost per gallon is projected to be $3.80 for the third quarter. Management expects combined-company unit revenue growth to be roughly consistent with standalone Allegiant's second-quarter increase, supported by healthy leisure demand and reduced off-peak flying.
For 2026, Allegiant expects adjusted earnings of more than $6 per share and fuel costs of $3.70 per gallon. The company remains confident in achieving at least $140 million of annual run-rate synergies within three years of the Sun Country acquisition closing.
Currently, Allegiant carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performances of Other Transportation Companies
Westinghouse Air Brake Technologies WAB, operating as Wabtec Corporation, reported encouraging second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.
Quarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion.
Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%.
United Airlines Holdings, Inc. UAL reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.
Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68 billion consensus mark. A 12.1% increase in total revenues per available seat mile or TRASM, and broad-based gains across premium, loyalty and cargo revenues, supported the top line despite sharply higher fuel costs.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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
Wabtec (WAB) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Allegiant Travel Company

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