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    Does Allegiant Travel’s (ALGT) New Hotels Push Signal Diversification Strength or Strategic Stretch?

    Simply Wall St·12/16/2025 23:29:42
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    • Earlier this month, Allegiant Travel Company amended its revolving credit agreement to extend potential borrowings of up to US$150.0 million to December 2030, while also adding Deutsche Bank AG New York Branch as a US$50.0 million lender alongside Barclays' US$100.0 million commitment.
    • Separately, Allegiant announced a new Allegiant Hotels platform powered by Rocket Travel by Agoda, allowing its over 20 million Allways Rewards members to earn or redeem points on worldwide hotel bookings and deepening the airline's role in customers' broader travel planning.
    • We’ll now examine how Allegiant Hotels’ worldwide booking and rewards expansion may influence Allegiant Travel’s existing investment narrative and risk profile.

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    Allegiant Travel Investment Narrative Recap

    To own Allegiant Travel today, you need to believe in its low cost, leisure focused model and loyalty ecosystem, despite recent losses and uneven demand. The expanded US$150.0 million revolving credit line modestly strengthens liquidity but does not materially change the near term catalyst around profitability improvements or the key risk of soft domestic leisure demand and seasonal earnings volatility.

    The Allegiant Hotels partnership with Rocket Travel by Agoda looks most relevant, because it directly ties into Allegiant’s existing catalysts around digital initiatives and co branded credit card growth, potentially supporting higher ancillary revenue from its 20 million Allways Rewards members.

    Yet investors should also be aware that Allegiant’s heavy exposure to shoulder season weakness and unbooked peak inventory could still...

    Read the full narrative on Allegiant Travel (it's free!)

    Allegiant Travel's narrative projects $3.1 billion revenue and $267.8 million earnings by 2028. This requires 6.0% yearly revenue growth and a $553.9 million earnings increase from $-286.1 million today.

    Uncover how Allegiant Travel's forecasts yield a $69.58 fair value, a 20% downside to its current price.

    Exploring Other Perspectives

    ALGT 1-Year Stock Price Chart
    ALGT 1-Year Stock Price Chart

    Simply Wall St Community members currently converge on a single fair value estimate of US$69.58 per share, showing very limited dispersion in views. You may want to contrast that with the risk that Allegiant’s seasonality driven earnings swings and demand softness could keep results more volatile than many casual observers expect.

    Explore another fair value estimate on Allegiant Travel - why the stock might be worth as much as $69.58!

    Build Your Own Allegiant Travel Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.