Allegiant Now Sees a Second Quarter Profit
Allegiant Air is expecting to make a profit in the second quarter, following the completion of its merger with Sun Country.
The carrier said Tuesday in an SEC filing it is forecasting adjusted earnings per share of $1.25, up from previous guidance of an adjusted loss per share of 50 cents. The current forecast includes Sun Country’s financial performance.
Allegiant attributed the more positive outlook to strong demand and moderating fuel prices in June. Jet fuel in the U.S. currently costs on average around $2.87 a gallon.
During the second quarter, Allegiant said it has paid around $4.20 for jet fuel.
The improved outlook comes after Allegiant reported a strong first quarter, in which it had an operating margin of 14.9%, the highest of any U.S. carrier. 
