Allegiant Travel Company closed its acquisition of Sun Country on May 13, and management now expects at least $140 million of annual run-rate synergies within three years of closing. In the second quarter, Sun Country contributed $167.3 million in revenues from the close through quarter-end, helping consolidated revenues rise 36.9% year over year to $943.5 million, with adjusted operating income of $87.1 million and a 9.2% adjusted operating margin. The integration plan includes network optimization, supplier consolidation, and a transition to a single operating certificate submitted to the Federal Aviation Administration. Consolidated debt ended June at $2.8 billion, including $546.8 million attributable to Sun Country, and the company expects roughly $850 million in 2026 capital expenditures. Fuel costs averaged $4.14 per gallon in the second quarter, up 71.1% year over year, and management projects third-quarter system capacity to decline about 6.5% year over year with adjusted operating margin between 1% and 3%.
Allegiant Travel CompanyAcquisition of Sun Country closed, with expected synergies and revenue contribution boosting consolidated results.
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