TacticScaleWhat Allegiant Travel Does & How It Makes Money (ALGT)
Updated October 2026 · reflects Allegiant Travel's latest reported financials
Low-cost leisure airline connecting small US cities to vacation spots. It earns money from ticket sales plus a wide range of add-on fees, such as bags, seat assignments, priority boarding, bigger seats, travel protection and onboard food and drinks.
How Allegiant Travel makes money
It earns money from ticket sales plus a wide range of add-on fees, such as bags, seat assignments, priority boarding, bigger seats, travel protection and onboard food and drinks. It also earns from charter flights and commissions on third-party hotel, car rental and insurance sales.
What Allegiant Travel does
Allegiant Travel Company, based in Las Vegas and founded in 1997, is a leisure-focused travel company built around its airline. It flies nonstop, limited-frequency routes that link under-served US cities with leisure destinations, so travelers from smaller markets can reach vacation spots without connecting through big hubs. As of February 1, 2026, its fleet included 106 Airbus A320 series aircraft and 16 Boeing 737 series aircraft. On top of fares, the company sells a long list of paid extras, including baggage, seat assignments, larger seats, priority boarding, travel protection, change fees, convenience fees and onboard food and drinks. It also sells third-party hotel rooms, rental cars and travel insurance, runs year-round and ad-hoc charter flights, and owns and operates a golf course.
Products & services
- Allegiant Air scheduled nonstop leisure flights
- Ancillary services (baggage, seat selection, priority boarding, larger seats)
- Travel protection products
- Third-party hotel and rental car bookings
- Charter flight services
- Golf course operations
What is Allegiant Travel worth?
On an owner-earnings DCF, Allegiant Travel's most-likely value is about $124 versus a recent price near $76 (63% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$74) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 5.7× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
Alaska Air (ALK) · United Airlines (UAL) · Delta Air Lines (DAL) · American Airlines (AAL) · JetBlue Airways (JBLU)