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%.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.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

Allegiant Travel Company (ALGT): Free Stock Analysis Report

Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report

Teekay Tankers Ltd. (TNK): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research