Allegiant Travel Company (NASDAQ:ALGT)  is one of the most promising stocks under $100 to buy. On March 16, Allegiant Travel Company and Sun Country Airlines (NASDAQ:SNCY) announced the early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act regarding their proposed merger. This development signifies that the companies have received US antitrust clearance from the Department of Justice, marking a major milestone in the acquisition process. The move brings the two le ...

Core Insights - Allegiant Travel Company has received U.S. antitrust clearance for its acquisition of Sun Country Airlines, marking a significant step towards completing the deal [1][10] - The acquisition is valued at approximately $1.5 billion, which includes $0.4 billion of Sun Country's net debt [4][10] Deal Details - The acquisition will involve Sun Country shareholders receiving 0.1557 shares of Allegiant common stock and $4.10 in cash for each share of Sun Country, representing a 19.8% premium over Sun Country's closing share price on January 9, 2026 [5] - The deal is expected to close in the second or third quarters of 2026, pending customary closing conditions including approvals from the U.S. Department of Transportation and shareholders of both companies [2] Strategic Benefits - The merger aims to create a stronger leisure-focused airline, expanding the network and travel options available to customers [3][7] - The combined entity is projected to operate over 650 routes, enhancing service to popular vacation destinations and providing more affordable air travel options [8] Financial Outlook - The merged company anticipates a net adjusted debt to EBITDAR ratio of less than 3.0x post-acquisition, indicating a solid financial position [6] - The merger is expected to generate new job opportunities and cross-training possibilities within the combined workforce [8]

Core Viewpoint - Allegiant Travel Company has received early termination of the Hart-Scott-Rodino Act waiting period for its proposed acquisition of Sun Country Airlines, marking a significant step towards the completion of the merger [1][2]. Group 1: Acquisition Details - The proposed acquisition is still subject to customary closing conditions, including approval from the U.S. Department of Transportation and the shareholders of both Allegiant and Sun Country [2]. - The transaction is anticipated to close in the second or third quarter of 2026 [2]. Group 2: Company Profiles - Allegiant is an integrated travel company based in Las Vegas, focusing on connecting customers with leisure destinations through low-cost, nonstop flights [3]. - Sun Country Airlines operates as a hybrid low-cost carrier based in Minnesota, serving leisure travelers and providing cargo services, including flights for Amazon [4]. Group 3: Leadership Statements - Allegiant's CEO, Greg Anderson, expressed confidence that the merger will create a stronger leisure-focused airline, enhancing travel options and long-term value for shareholders [3].

Core Viewpoint - The article highlights Sun Country Airlines Holdings, Inc. (SNCY) as a promising growth stock, supported by its favorable Growth Score and Zacks Rank, indicating strong potential for outperformance in the market [2][10]. Earnings Growth - Sun Country Airlines has a historical EPS growth rate of 29.4%, with projected EPS growth of 47.9% this year, surpassing the industry average of 47.5% [4]. Cash Flow Growth - The company currently exhibits a year-over-year cash flow growth of 1%, which is better than the industry average of -1.8%. Additionally, its annualized cash flow growth rate over the past 3-5 years stands at 34.4%, compared to the industry average of 18.6% [5][6]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Sun Country Airlines, with the Zacks Consensus Estimate for the current year increasing by 3.1% over the past month [8]. Overall Positioning - Sun Country Airlines has achieved a Growth Score of B and a Zacks Rank of 2, positioning it favorably for growth investors seeking potential outperformance [10].

Core Insights - Sun Country Airlines has extended its selling schedule through December 15, 2026, allowing customers to book travel for key holiday periods and peak fall travel to popular leisure destinations [1][2] Group 1: Schedule Extension - The fall 2026 schedule extension focuses on popular destinations such as Boston, Portland (ME), Syracuse, Burlington (VT), Las Vegas, Phoenix, Orlando, and Fort Myers, enhancing options for MEA weekend getaways and Thanksgiving travel [2] - The airline will relaunch service from Eau Claire, WI to Las Vegas, which was last operated in fall 2024, building on the success of its winter service between Eau Claire and Fort Myers [3] Group 2: Customer Experience - Sun Country Airlines aims to provide affordable, nonstop travel options for Minnesotans during popular vacation weekends, emphasizing customer convenience and planning [4] - The airline operates over 115 routes serving nearly 100 airports across the U.S., Mexico, Central America, Canada, and the Caribbean, offering a reliable flying experience with modern seating and complimentary in-flight services [4] Group 3: Company Overview - Sun Country Airlines is characterized as a hybrid low-cost carrier focused on connecting guests to leisure destinations and providing cargo services, including flights for Amazon [5]

Merger and Acquisition - The merger agreement with Allegiant Travel Company will convert each share of Sun Country Common Stock into $4.10 in cash and 0.1557 shares of Allegiant Common Stock[96]. - The merger is expected to close in the second half of 2026, subject to various closing conditions including regulatory approvals[99]. Fleet and Operations - As of December 31, 2025, the fleet consisted of 70 Boeing 737-NG aircraft, including 47 passenger aircraft and 20 cargo aircraft operated under an agreement with Amazon[103]. - The company operates a flexible capacity model focused on peak demand, with only 4% of total Scheduled Service routes being daily, year-round routes[106]. - The company has increased the number of cargo aircraft operated on behalf of Amazon from 12 to 20, with plans to operate 22 by early 2026[104]. - The company operates a diverse Charter customer base, including contracts with all MLS teams and collegiate sports teams, which are non-cyclical[120]. - The company’s operational performance is supported by a highly capable fleet of Boeing 737-NG aircraft, designed to operate in adverse weather conditions[141]. - Scheduled Service business served 4.2 million passengers in 2025, a decrease from 4.5 million in 2024, indicating a decline of 6.7%[105]. - Charter block hours under long-term contracts comprised 72% and 74% of total Charter flying for the years ended December 31, 2025 and 2024, respectively[120]. Financial Performance - For the years ended December 31, 2025 and 2024, the average total fare per passenger was approximately $166.17 and $159.93, respectively, indicating a year-over-year increase of 0.8%[105]. - The average ancillary revenue per passenger for the years ended December 31, 2025 and 2024 was approximately $70.12 and $68.68, respectively, reflecting a growth of 2.1%[109]. - Aircraft fuel represented approximately 21% and 24% of total operating costs for the years ended December 31, 2025 and 2024, respectively[142]. - The average fuel cost per gallon, excluding indirect fuel credits, was $2.56 in 2025 and $2.77 in 2024[142]. - Sales through direct distribution channels accounted for 80% and 78% of total bookings for the years ended December 31, 2025 and 2024, respectively[133]. Employee and Labor Relations - The company had 3,281 employees as of December 31, 2025[148]. - As of December 31, 2025, approximately 66% of employees were represented by labor unions, with key groups including 682 pilots and 753 flight attendants[150][151]. - The collective bargaining agreement (CBA) with pilots became amendable in December 2025, while the CBA with flight attendants will be amendable in February 2030[151]. - The CBA for below-the-wing fleet service employees was ratified in November 2025 and will be amendable in November 2028[150][151]. Safety and Compliance - The company is committed to maintaining high safety compliance standards, guided by established procedures and policies[153]. - Investments in safety programs include Flight Operations Quality Assurance and advanced training devices, enhancing operational safety and efficiency[156]. - The company actively participates in safety-sharing programs and utilizes the FAA's Aviation Safety Information Analysis and Sharing System to enhance safety data exchange[155]. - The company is currently in compliance with federal regulations regarding foreign ownership, with at least 75% of voting stock owned by U.S. citizens[163]. Environmental Regulations - The company is subject to extensive environmental regulations, including those related to greenhouse gas emissions, with new standards expected to impact operations[176][177]. - CORSIA program will increase operating costs for U.S. airlines, with a pilot phase starting in 2021 and a first phase beginning in 2024[178]. - Compliance costs under CORSIA are uncertain due to fluctuating prices of carbon offset credits and lower-carbon fuels, with obligations based on global aviation emissions growth starting in 2033[179]. - California's new climate reporting laws require large businesses to disclose GHG emissions annually starting in 2026, impacting the company as a reporting entity[180]. - Local noise abatement procedures could adversely impact operations if regulations become more restrictive[181]. Market Risks and Financial Position - The company faces market risks including commodity price risk related to aircraft fuel, with a one cent per gallon increase estimated to raise fuel expenses by approximately $227[494]. - The company maintains a $75,000 Revolving Credit Facility with a variable interest rate, with no amounts drawn as of December 31, 2025[495]. - The fair market value of the company's short-term investments exposed to interest rate risk was $83,131 as of December 31, 2025[496]. - The company does not anticipate significant fluctuations in the fair value of financial assets to materially impact liquidity or capital position[496]. - The company has not entered into fuel hedging contracts as of December 31, 2025, but may reconsider based on market conditions[494]. Community Involvement - The company has a three-year commitment to donate travel for Make-A-Wish Minnesota, continuing its community involvement initiatives[159].

Core Insights - Sun Country Airlines Holdings, Inc. reported a revenue of $280.96 million for the quarter ended December 2025, marking a year-over-year increase of 7.9% and exceeding the Zacks Consensus Estimate by 2.71% [1] - The earnings per share (EPS) for the same period was $0.17, down from $0.27 a year ago, but it surpassed the consensus EPS estimate of $0.13 by 36% [1] Financial Performance Metrics - The company’s shares have returned +26.2% over the past month, significantly outperforming the Zacks S&P 500 composite, which changed by +0.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3] Operational Statistics - Fuel cost per gallon was reported at $2.56, slightly above the average estimate of $2.55 [4] - Available seat miles (ASMs) for scheduled service were 1.45 million, below the average estimate of 1.47 million [4] - Total ASMs were 1.85 billion, exceeding the average estimate of 1.83 billion [4] - Revenue passenger miles for scheduled service were 1.22 billion, slightly below the estimated 1.23 billion [4] - Load factor was reported at 84.4%, above the estimated 83.8% [4] - Fuel gallons consumed were 19.48 million, marginally above the estimate of 19.47 million [4] - Adjusted cost per available seat mile (CASM) was 8.78 cents, better than the average estimate of 9.39 cents [4] - Operating revenues from passenger services were $221.48 million, exceeding the estimate of $213.07 million and reflecting a +2.9% change year-over-year [4] - Operating revenues from other services were $11.44 million, below the estimate of $12.4 million, representing a -30.8% change year-over-year [4] - Operating revenues from cargo services were $48.05 million, slightly below the estimate of $48.21 million, but showing a significant +67.9% change year-over-year [4]

分组1 - Sun Country Airlines reported quarterly earnings of $0.17 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, but down from $0.27 per share a year ago, representing an earnings surprise of +36.00% [1] - The company achieved revenues of $280.96 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.71% and increasing from $260.41 million year-over-year [2] - Sun Country Airlines has outperformed the S&P 500 with a share price increase of approximately 34.4% since the beginning of the year, compared to the S&P 500's gain of 0.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.70 on revenues of $327.97 million, and for the current fiscal year, it is $1.67 on revenues of $1.22 billion [7] - The Transportation - Airline industry, to which Sun Country Airlines belongs, is currently ranked in the top 19% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Insights - Sun Country Airlines reported its fourteenth consecutive profitable quarter and fifth consecutive year of profitability, with Q4 2025 total revenue reaching $281.0 million, the highest fourth quarter on record [1][2] - The company achieved a full year total revenue of $1.13 billion for FY 2025, also the highest full year on record [1][2] Financial Performance - Q4 2025 GAAP diluted EPS was $0.15, while adjusted diluted EPS was $0.17, reflecting a decrease from $0.24 in Q4 2024 [1][3] - For FY 2025, GAAP diluted EPS remained stable at $0.96, with adjusted diluted EPS increasing to $1.10 from $1.05 in FY 2024 [1][4] - Total operating revenue for Q4 2025 increased by 7.9% compared to Q4 2024, while operating income decreased by 30.3% [3][4] Operational Highlights - The company expanded its cargo fleet by eight aircraft, which required adjustments in its scheduled service network, leading to a 9.8% decrease in scheduled service capacity [2][5] - Scheduled service TRASM grew by 8.9% year-over-year, driven by strong demand despite reduced capacity [5][8] - Cargo revenue surged by 67.9% in Q4 2025, primarily due to the additional cargo aircraft [9] Cost and Efficiency - Q4 2025 GAAP operating expenses increased by 12.1%, while CASM rose by 19.1% due to headcount growth and increased maintenance costs [10][30] - The company reported an operating income margin of 6.5% for Q4 2025, down from 10.0% in Q4 2024 [4][40] Balance Sheet and Liquidity - As of December 31, 2025, total liquidity was $302.8 million, with net debt at $364.0 million [12][32] - Cash and cash equivalents increased to $144.7 million from $83.2 million in the previous year [12][32] Future Outlook - Sun Country announced plans to open a new operational base at Cincinnati/Northern Kentucky International Airport in early 2026, which is expected to enhance operational efficiencies [11] - The company is set to merge with Allegiant, with the transaction expected to close in the second half of 2026, pending regulatory approvals [15][16]

Exhibit 99.1 Sun Country Airlines Reports Fourth Quarter and Full Year 2025 Results Fourteenth consecutive quarter and fifth consecutive year of profitability Q4 2025 total revenue of $281.0 million, highest fourth quarter on record Q4 2025 GAAP diluted EPS of $0.15 and adjusted diluted EPS of $0.17 FY 2025 total revenue of $1.13 billion, highest full year on record FY 2025 GAAP diluted EPS of $0.96 and adjusted diluted EPS of $1.10 (1) (2) (1) (2) MINNEAPOLIS. February 5, 2026. Sun Country Airlines Holding ...