ALGT — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-10

• Second quarter 2026 highlights include the following. Note that second quarter consolidated results include Sun Country operations only from and after the May 13, 2026 closing date of the transaction until the period end on June 30, 2026 (the "stub period").

• •On May 13, 2026, we completed the acquisition of Sun Country just four months after announcing the transaction.

• •Record Allegiant Air revenue of $776.2 million, up 16.1 percent year over year on 6.8 percent less capacity compared to the prior year quarter

• •Allegiant Air quarterly TRASM record of 14.42 ¢, up 24.6 percent year over year

• ◦Allegiant Air third-party products revenue of $44.5 million, up 32.2 percent year over year driven by cobrand remuneration

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• •Signed the Merger Agreement to acquire Sun Country and received the necessary regulatory approvals to close the Merger

• •Record first quarter total operating revenue of $732.4 million, up 9.6 percent year-over-year when excluding prior year Sunseeker results

• •Fixed fee revenue of $18.1 million, up 11.5 percent year-over-year

• •Total revenue per available seat mile (TRASM) up 16.4 percent year-over-year

• •Airline-only operating cost per available seat mile (CASM), excluding fuel and special charges of 8.64 ¢, up 7.1 percent year-over-year

Text added vs the prior filing · source: 10-Q · 2026-08-10

• On May 13, 2026, the Company acquired Sun Country Airlines Holdings, Inc. (see Note 2 to the consolidated financial statements). As permitted by Securities and Exchange Commission Staff interpretive guidance for newly acquired businesses, management intends to exclude Sun Country from its annual eva…

Text added vs the prior filing · source: 10-Q · 2026-08-10

• Our cargo business is concentrated with Amazon, and any decrease in volumes or increase in costs, or a termination of the ATSA, could have a material adverse effect on our business, results of operations and prospects.

• Cargo revenue under the ATSA represented approximately 16.4 percent of Sun Country’s total operating revenues for the stub period, and this cargo revenue consisted entirely of air cargo transportation services provided to Amazon under the ATSA. The ATSA does not require a minimum amount of flying an…

• In addition, the profitability of the ATSA is dependent on our ability to manage and accurately predict costs. Our projections of operating costs, crew productivity and maintenance expenses contain key assumptions, including flight hours, aircraft reliability, crew member productivity, compensation …

• Performance under the ATSA is subject to a number of challenges and uncertainties, such as: unforeseen maintenance and other costs; our ability to hire pilots, crew and other personnel necessary to support our cargo services, which can be impacted by industry-wide staffing shortages; interruptions i…

• To the extent our volume of flying for Amazon decreases or costs associated with our cargo business increase, or if the ATSA is terminated for any reason, our business, results of operations and prospects could be materially and adversely affected.