Allegiant Travel CO

Previous wording

The following discussion and analysis presents factors that had a material effect on our results of operations during the three and six months ended June 30, 2026 and 2025. Also discussed is our financial position as of June 30, 2026 and December 31, 2025. You should read this discussion in conjunction with our unaudited consolidated financial statements, including the notes thereto, appearing elsewhere in this Form 10-Q and our consolidated financial statements appearing in our annual report on Form 10-K for the year ended December 31, 2025. This discussion and analysis contains forward-looking statements. Please refer to the section below entitled “Cautionary Note Regarding Forward-Looking Statements” for a discussion of the uncertainties, risks and assumptions associated with these statements.

Current wording

The following discussion and analysis presents factors that had a material effect on our results of operations during the three and nine months ended September 30, 2026 and 2025. Also discussed is our financial position as of September 30, 2026 and December 31, 2025. You should read this discussion in conjunction with our unaudited consolidated financial statements, including the notes thereto, appearing elsewhere in this Form 10-Q and our consolidated financial statements appearing in our annual report on Form 10-K for the year ended December 31, 2025. This discussion and analysis contains forward-looking statements. Please refer to the section below entitled “Cautionary Note Regarding Forward-Looking Statements” for a discussion of the uncertainties, risks and assumptions associated with these statements.

Previous wording

•Consolidated total operating revenue of $943.5 million

Current wording

•Consolidated total operating revenue of $961.6 million

Previous wording

•$41.2 million in total Allegiant Air cobrand credit card remuneration received, up 23.6 percent year over year

Current wording

•$42.1 million in total Allegiant Air co-brand credit card remuneration received, up 23.6 percent year over year (excluding Sun Country)

Previous wording

(1)Includes 23 aircraft under finance lease and 9 aircraft under operating lease as of June 30, 2026 and December 31, 2025. Excludes one aircraft under operating lease as of June 30, 2026 and three aircraft under operating lease as of December 31, 2025, which were removed from service pending redelivery.

Current wording

(1)Includes 23 aircraft under finance lease and nine aircraft under operating lease as of September 30, 2026 and December 31, 2025. Excludes three aircraft under operating lease as of December 31, 2025, which were removed from service pending redelivery.

Previous wording

As of June 30, 2026, we are party to forward purchase agreements for 30 aircraft with deliveries expected between 2026 and 2028.

Current wording

As of October 30, 2026, we are party to forward purchase agreements for 34 aircraft with deliveries expected between November 2026 and 2028.

Previous wording

Due to the heavy maintenance needs on certain aging Airbus airframes and capacity constraints at the maintenance, repair, and overhaul contractors, we identified aging airframes for early retirement to coincide with the delivery schedule for our 737 MAX aircraft provided in an amendment to our Boeing purchase agreement signed in September 2023. As of June 30, 2026, 17 airframes have been retired, with seven additional retirements scheduled between July 2026 and January 2027. The accelerated depreciation resulting from the revised estimated useful life of these aircraft is recorded as a special charge in the consolidated financial statements, including $1.3 million recognized in second quarter 2026. The engines from these aircraft will be retained for future overhaul cost mitigation and may be sold on an opportunistic basis if we determine the engine has no better economic use in our operating fleet.

Current wording

Due to the heavy maintenance needs on certain aging Airbus airframes and capacity constraints at the maintenance, repair, and overhaul contractors, we identified aging airframes for early retirement to coincide with the delivery schedule for our 737 MAX aircraft provided in an amendment to our Boeing purchase agreement signed in September 2023. As of September 30, 2026, 19 airframes have been retired, with five additional retirements scheduled between November 2026 and January 2027. The accelerated depreciation resulting from the revised estimated useful life of these aircraft is recorded as a special charge in the consolidated financial statements, including $0.8 million recognized in third quarter 2026. The engines from these aircraft will be retained for future overhaul cost mitigation and may be sold on an opportunistic basis if we determine the engine has no better economic use in our operating fleet.

Previous wording

As of June 30, 2026, and with the Sun Country acquisition, we were selling 675 routes versus 579 as of the same date in 2025. Network growth in the future will continue to be affected by high fuel prices, the timing of aircraft deliveries, aircraft in heavy maintenance, crew availability, airport construction and disruption, trends in domestic, leisure air travel demand and other factors such as macroeconomic conditions and geopolitical unrest. We have identified over 1,400 incremental domestic nonstop routes as opportunities for future network growth, of which over 75 percent currently have no non-stop service. The Allegiant Air network included 90 origination cities and 34 leisure destinations, as of June 30, 2026.

Current wording

As of September 30, 2026, and with the Sun Country acquisition, we were selling 664 routes versus 551 being sold by Allegiant Air as of the same date in 2025. Network growth in the future will continue to be affected by high fuel prices, the timing of aircraft deliveries, aircraft in heavy maintenance, crew availability, airport construction and disruption, trends in domestic, leisure air travel demand and other factors such as macroeconomic conditions and geopolitical unrest. We have identified over 1,400 incremental domestic nonstop routes as opportunities for future network growth, of which over 75 percent currently have no non-stop service. The Allegiant Air network included 90 origination cities and 33 leisure destinations, as of September 30, 2026.

Previous wording

Sun Country's largest and primary base is Minneapolis-Saint Paul International Airport ("MSP"), where it is the largest low-cost carrier and the second largest airline overall. Our MSP network served approximately 96 markets as of June 30, 2026. As of that date, Sun Country also served approximately 17 non-MSP markets and was selling a total of 109 routes.

Current wording

Minneapolis-Saint Paul International Airport ("MSP") is the largest and primary base for our Sun Country operation. At MSP, we are the largest low-cost carrier and the second largest airline overall. As of September 30, 2026, our MSP network served approximately 85 markets. As of that date, our overall Sun Country operation served approximately 14 non-MSP markets and was selling a total of 109 routes.

Previous wording

In May 2026, we closed on our agreement to acquire Sun Country. We believe the transaction aligns with our long-term strategic objectives and is expected to enhance our network breadth, operational flexibility, and ability to respond to demand shifts, while supporting the passenger and cargo operations of both airlines. The acquisition of Sun Country involves the integration of Sun Country’s business with our existing business, which is a complex, costly, and time-consuming process. Integration of the two companies is underway.

Current wording

In May 2026, we completed our acquisition of Sun Country. Integration of Sun Country’s business with our existing business is underway and is expected to be a complex, costly, and time-consuming process. We believe the combination will enhance our network breadth, operational flexibility, and ability to respond to demand shifts, while supporting the passenger and charter operations of both airlines.

Previous wording

Both companies continue to operate as separate airlines under FAA rules. We have applied with the FAA for a single operating certificate which we currently expect will be obtained in 2028. Our ability to combine operations will be limited until we receive a single operating certificate and there are joint collective bargaining agreements in place with the various unionized work groups.

Current wording

Both companies continue to operate as separate airlines under FAA rules. We have applied with the FAA for a single operating certificate ("SOC") which we currently expect will be obtained in 2028. Our ability to combine operations will be limited until we receive a single operating certificate and there are joint collective bargaining agreements in place with the various unionized work groups.

Previous wording

The cost of fuel, including refining costs and applicable crack spreads, remains volatile, and is influenced by numerous economic and geopolitical factors beyond our control or prediction, including geopolitical conflict and war. The recent escalation of hostilities in the Middle East has significantly impacted the market prices of products that are derived from crude oil. Our second quarter fuel expense was $307.7 million or $4.14 per gallon, which is 71.1 percent higher than the $2.42 per gallon we paid in second quarter 2025. As hostilities and uncertainty continue in the Middle East, we may continue to see significant increases in fuel costs that will materially impact our overall cost structure, operating results and profitability. We have not used financial derivative products to hedge against fuel price volatility, nor do we have any plans to do so in the future.

Current wording

The cost of fuel, including refining costs and applicable crack spreads, remains volatile, and is influenced by numerous economic and geopolitical factors beyond our control or prediction, including geopolitical conflict and war. Our third quarter fuel expense was $293.6 million or $3.98 per gallon, which is 55.5 percent higher than the $2.56 per gallon Allegiant Air paid in third quarter 2025. As hostilities in the Middle East continue to significantly impact the market prices of products that are derived from crude oil, we may continue to experience elevated fuel costs that will materially impact our overall cost structure, operating results and profitability. We have not used financial derivative products to hedge against fuel price volatility, nor do we have any plans to do so in the future.

Previous wording

Although air travel demand in the first half of 2026 has been strong, demand could be impacted in the future by macroeconomic, geopolitical, and airline industry events as it has in the past. During 2026, we strategically reduced off-peak day of week capacity and, in turn, increased peak day ASMs on fewer total aircraft year-over year. For Allegiant Air, this contributed to a 4.0 percentage point increase in load factor on a 6.2 percent decrease in scheduled service capacity in second quarter 2026. Our unique model is predicated around expanding and contracting capacity to meet seasonal leisure travel demands. We expect to continue to manage our peak period utilization as the demand environment allows.

Current wording

Although air travel demand throughout 2026 has been strong, demand could be impacted in the future by macroeconomic, geopolitical, and airline industry events as it has in the past. Throughout 2026 at Allegiant Air, we strategically reduced off-peak day of week capacity and, in turn, increased peak day ASMs on fewer average total aircraft year-over year. For Allegiant Air, this contributed to a 2.7 percentage point increase in load factor on a 3.2 percent decrease in scheduled service capacity in third quarter 2026. Our unique model is predicated around expanding and contracting capacity to meet seasonal leisure travel demands. We expect to continue to manage our peak period utilization as the demand environment allows.

Previous wording

In July 2026, we entered into a 12-month exclusive distribution agreement with Expedia Group to be Allegiant Air's first-ever authorized online travel agency ("OTA") partner, bringing our nonstop network to all of Expedia Group's U.S. brands and expanding reach to new leisure customers. Early results are promising, comprising of approximately 3% of bookings since the launch, with meaningfully more than half of those bookings from net new customers.

Current wording

In July 2026, we entered into a 12-month exclusive distribution agreement with Expedia Group, making Allegiant Air's nonstop network available through an authorized online travel agency ("OTA") partner for the first time. The agreement makes our flights available across Expedia Group's U.S. brands and expands our reach to new leisure customers. Since its launch in July 2026, approximately four percent of our Allegiant Air bookings have come from this distribution channel, and a significant portion of these are new customers to Allegiant.

Previous wording

We have also announced enhancements to our onboard experience. Beginning August 1, 2026, all Allegiant Air flights will include a complimentary inflight beverage service. We have also announced Allegiant First, a new premium seating tier scheduled to debut on future MAX deliveries, with service expected to begin in spring 2027. The introduction of Allegiant First will feature a redesigned and enhanced cabin with eight new Allegiant First seats with minimal impact to seating capacity. The new seating to be included on these future deliveries will feature improved seat cushions and in-seat power in all cabins.

Current wording

In August 2026, we introduced complimentary inflight beverage service on all Allegiant Air flights. We have also announced Allegiant First, a new premium seating tier scheduled to debut on future MAX deliveries, with service expected to begin in spring 2027. Allegiant First will feature a redesigned and enhanced cabin with eight new Allegiant First seats with minimal impact to seating capacity. The new seating configuration on these future deliveries will feature improved seat cushions and in-seat power in all cabins.

Previous wording

We have signed an agreement and amendments with Boeing to purchase 50 newly manufactured 737 MAX aircraft with options to purchase up to an additional 80 737 MAX aircraft. We have taken delivery of 20 737 MAX aircraft from this order through June 30, 2026, and all of these aircraft are currently in revenue service. We believe this new aircraft purchase is complementary with our low-cost strategy based on our intent to retain ownership of the aircraft, the longer useful life for depreciation purposes, and expected fuel savings and operational reliability from the use of these new aircraft. Our 737 MAX aircraft represented approximately 21% of our ASMs in second quarter 2026 as compared to 11% during the same period 2025.

Current wording

We have signed an agreement and amendments with Boeing to purchase 56 newly manufactured 737 MAX aircraft with options to purchase up to an additional 74 737 MAX aircraft. Through September 30, 2026, we have taken delivery of 21 737 MAX aircraft from this order, and all of these aircraft are currently in revenue service. We believe this new aircraft purchase is complementary with our low-cost strategy based on our intent to retain ownership of the aircraft, the longer useful life for depreciation purposes, and expected fuel savings and operational reliability from the use of these new aircraft. Our 737 MAX aircraft represented approximately 22.1% of the Allegiant Air ASMs in third quarter 2026 as compared to 12.7% during the same period in 2025.

Previous wording

We currently expect seven aircraft to be delivered to us in the last six months of 2026 with the remaining aircraft under contract to be delivered in 2027 and 2028. Delays in aircraft deliveries could impact our ability to schedule additional growth when the demand environment allows.

Current wording

We currently expect four aircraft to be delivered to us in the last three months of 2026 with the remaining aircraft under contract to be delivered in 2027 and 2028. Delays in aircraft deliveries could impact our ability to schedule additional growth when the demand environment allows.

Previous wording

The Allegiant Air pilots, who are represented by the International Brotherhood of Teamsters (“IBT”), ratified a new collective bargaining agreement on July 31, 2026. Among other new and modified terms, that new agreement provides for increased compensation and enhanced benefits to the Allegiant Air pilot group and contains improvements to the scheduling process for the Company. In addition, pursuant to the terms of that agreement, the pilot retention bonuses we have accrued will be payable no later than fourth quarter 2026.

Current wording

The Allegiant Air pilots, who are represented by the International Brotherhood of Teamsters (“IBT”), ratified a new collective bargaining agreement on July 31, 2026. Among other new and modified terms, that new agreement provides for increased compensation and enhanced benefits to the Allegiant Air pilot group and contains improvements to the scheduling process which we expect will increase pilot productivity. Following ratification of the collective bargaining agreement, we paid pilot retention bonuses (which we began accruing in May 2023) totaling $267.0 million, including related taxes.

Previous wording

As the acquisition of Sun Country was completed on May 13, 2026, the three and six months ended June 30, 2026 include the results of Sun Country for the period May 13, 2026 through June 30, 2026, while the comparative periods in 2025 do not. Consolidated revenue and expenses all increased compared to the prior period due to the incorporation of Sun Country's operations into the Company. As a result, the below discussion of changes to our revenue and expenses compared to the prior year largely focuses on material factors independent of the acquisition.

Current wording

As the acquisition of Sun Country was completed on May 13, 2026, the three months ended September 30, 2026 include Sun Country's results for the full three month period, while the nine months ended September 30, 2026 include Sun Country's results from May 13, 2026 through September 30, 2026, which we also refer to as the "stub period." The comparative periods in 2025 do not include Sun Country's results. Consolidated revenue and expenses all increased compared to the prior year periods due to the incorporation of Sun Country's operations into the Company. As a result, the discussion below of changes to our revenue and expenses compared to the prior year largely focuses on material factors independent of the acquisition.

Previous wording

Passenger revenue. Passenger revenue for second quarter 2026 increased $204.6 million or 33.1 percent, of which Sun Country contributed $105.5 million during the stub period.

Current wording

Passenger revenue. Passenger revenue increased $283.3 million or 57.3 percent, of which Sun Country contributed $156.8 million.

Previous wording

The remaining change is attributable to strength in demand, which drove a 17.9 percent increase in average total fare for Allegiant Air, including a 39.9 percent increase in average scheduled service base fare. Allegiant Air scheduled service passengers decreased by 0.8 percent on a capacity reduction of 6.2 percent, resulting in a 4.0 percentage point increase in the Allegiant Air load factor.

Current wording

The remaining increase is attributable to strength in demand, which drove a 23.6 percent increase in average total fare for Allegiant Air, including a 54.5 percent increase in average scheduled service base fare. Allegiant Air scheduled service passengers decreased by 0.5 percent on a capacity reduction of 3.2 percent, resulting in a 2.7 percentage point improvement in load factor.

Previous wording

Third party products revenue. Third party products revenue increased $12.1 million or 36.0 percent, of which Sun Country contributed $1.3 million during the stub period.

Current wording

Third party products revenue. Third party products revenue increased $5.2 million or 13.2 percent, of which Sun Country contributed $2.3 million.

Previous wording

The remaining increase is attributable to a $9.3 million increase in the marketing component of Allegiant Air's co-brand remuneration and smaller increases in Allegiant Air's third party rental car and travel insurance revenue. These increases were slightly offset by a decrease in hotel room revenue.

Current wording

The remaining increase is attributable to continued growth in the marketing component of Allegiant Air’s co-brand remuneration, along with moderate growth in third party travel insurance and rental car sales.

Previous wording

Fixed fee contract revenue. Fixed fee contract revenue increased $28.7 million, all of which was attributable to Sun Country during the stub period.

Current wording

Fixed fee contract revenue. Fixed fee contract revenue increased $64.8 million, the majority of which was contributed by Sun Country.

Previous wording

Cargo revenue. Cargo revenue was $27.6 million, which was wholly attributable to the acquisition of Sun Country, and which was generated during the stub period.

Current wording

Cargo revenue. Cargo revenue was $52.4 million, which was wholly attributable to Sun Country.

Previous wording

Resort and other revenue. Resort and other revenues decreased by $18.9 million due to the sale of Sunseeker Resort in September 2025.

Current wording

Resort and other revenue. Resort and other revenues decreased by $6.1 million, primarily due to a $9.4 million decrease in resort revenue as a result of the sale of Sunseeker Resort in September 2025, offset by $3.3 million of other revenue contributed by Sun Country (mostly aircraft lease revenue).

Previous wording

The following table presents airline only operating unit costs on a per available seat mile (ASM) basis, defined as Operating CASM, for the indicated periods. Excluding fuel on a per ASM basis provides management and investors the ability to measure and monitor our cost performance absent fuel price volatility. Both the cost and availability of fuel are subject to many economic and political factors beyond our control. We also show Operating CASM excluding fuel costs, special charges, and cargo expenses. Excluding fuel costs, special charges, and cargo expenses allows management and investors to better compare our airline unit costs with those of other airlines. Sun Country cargo expenses (which are included in salaries and benefits, station operations, depreciation and amortization, maintenance and repairs, and other expenses in our consolidated statements of income) are excluded as those expenses do not drive ASMs.

Current wording

The following table presents airline only operating unit costs on a per available seat mile (ASM) basis, defined as Operating CASM, for the indicated periods. Excluding fuel on a per ASM basis provides management and investors the ability to measure and monitor our cost performance absent fuel price volatility. Both the cost and availability of fuel are subject to many economic and political factors beyond our control. We also show Operating CASM excluding fuel costs, special charges, and cargo expenses. Excluding fuel costs, special charges, and cargo expenses allows management and investors to better compare our airline unit costs with those of other airlines. Sun Country cargo expenses (which are included in aircraft fuel, salaries and benefits, station operations, depreciation and amortization, maintenance and repairs, and other expenses in our consolidated statements of income) are excluded from the CASM calculation as those expenses do not drive ASMs.

Previous wording

Airline operating CASM, excluding fuel, special charges and cargo expenses. Allegiant Air operating CASM, excluding fuel and special charges, increased 6.4 percent to 8.17 ¢ in second quarter 2026 from 7.68 ¢ in second quarter 2025. The increase was primarily driven by a 6.8 percent decrease in Allegiant Air capacity compared to the prior year quarter, which resulted in higher unit costs across most expense categories. CASM-ex was also impacted by the year-over-year expense increases discussed below.

Current wording

Airline operating CASM, excluding fuel, special charges and cargo expenses. Allegiant Air operating CASM, excluding fuel, special charges and cargo expenses ("CASM-ex"), increased 6.6 percent to 9.03 ¢ in third quarter 2026 from 8.47 ¢ in third quarter 2025. The increase was primarily driven by a 3.4 percent decrease in Allegiant Air capacity compared to the prior year quarter, which resulted in higher unit costs across most expense categories. CASM-ex was also impacted by the year-over-year expense increases discussed below.

Previous wording

Aircraft fuel expense. Aircraft fuel expense increased by $141.9 million or 85.6 percent, of which Sun Country contributed $42.5 million during the stub period.

Current wording

Aircraft fuel expense. Aircraft fuel expense increased by $142.3 million or 94.1 percent, of which Sun Country contributed $67.4 million.

Previous wording

Salaries and benefits expense. Salaries and benefits expense increased by $36.2 million or 16.9 percent, of which Sun Country contributed an increase of $49.0 million during the stub period, offset by a decrease of $10.6 million resulting from the sale of Sunseeker Resort.

Current wording

Salaries and benefits expense. Salaries and benefits expense increased by $91.0 million or 46.3 percent, of which Sun Country contributed an increase of $98.4 million, offset by a decrease of $5.9 million resulting from the sale of Sunseeker Resort.

Previous wording

The remaining decrease of $2.1 million was driven by organizational restructuring initiatives implemented by Allegiant Air during 2025, which resulted in a 4.9 percent reduction in full-time equivalent Allegiant Air employees, offset by increased wages for certain employee workgroups due to contractual and annual merit raises.

Current wording

The remaining decrease was driven by organizational restructuring initiatives implemented by Allegiant Air during 2025, which resulted in a 7.2 percent reduction in average full-time equivalent Allegiant Air employees, offset by increased wages for certain employee workgroups due to contractual and annual merit raises.

Previous wording

Station operations expense. Station operations expense increased $23.3 million or 15.7 percent, of which Sun Country contributed $19.4 million during the stub period.

Current wording

Station operations expense. Station operations expense increased $42.6 million or 59.7 percent, of which Sun Country contributed $35.7 million.

Previous wording

Depreciation and amortization expense. Depreciation and amortization expense increased by $2.2 million or 3.2 percent. Sun Country contributed an increase of $12.2 million during the stub period, and the sale of Sunseeker Resort resulted in a decrease of $3.6 million.

Current wording

Depreciation and amortization expense. Depreciation and amortization expense increased by $22.2 million or 37.7 percent. Sun Country contributed an increase of $23.6 million.

Previous wording

Maintenance and repairs expense. Maintenance and repairs expense increased $13.2 million or 18.6 percent, of which Sun Country contributed $9.9 million during the stub period.

Current wording

Maintenance and repairs expense. Maintenance and repairs expense increased $19.9 million, or 49.8 percent, of which Sun Country contributed $20.6 million.

Previous wording

Sales and marketing expense. Sales and marketing expense increased $11.5 million or 22.1 percent, of which $5.3 million was contributed by Sun Country during the stub period and a decrease of $3.4 million was attributable to the sale of Sunseeker Resort.

Current wording

Sales and marketing expense. Sales and marketing expense increased $12.8 million or 55.4 percent, of which $8.2 million was contributed by Sun Country and a decrease of $0.9 million was attributable to the sale of Sunseeker Resort.

Previous wording

The remaining increase of $4.7 million was primarily driven by higher Allegiant Air credit card processing fees consistent with the increase in Allegiant Air passenger revenue compared to the prior year quarter.

Current wording

The remaining increase of $5.5 million or 25.1 percent for Allegiant Air was primarily driven by higher credit card processing fees consistent with the 25.6 percent increase in Allegiant Air passenger revenue compared to the prior year quarter.

Previous wording

Aircraft rent. Aircraft rent decreased $4.0 million as a result of lease return costs accrued during the prior year quarter that were not present in second quarter 2026 and as a result of seven leased aircraft which were returned to the lessor from operating leases since June 30, 2025.

Current wording

Aircraft rent. Aircraft rent decreased $3.4 million as a result of lease return costs accrued during the prior year quarter that were not present in third quarter 2026 and eight leased aircraft that were returned to lessors since September 30, 2025.

Previous wording

Special charges. Special charges were $66.0 million in second quarter 2026, of which $55.2 million relates to costs of the Sun Country acquisition and integration, $10.0 million relates to accelerated amortization of software identified for redevelopment, and $1.3 million relates to accelerated depreciation of airframes identified for early retirement.

Current wording

Special charges. Special charges were $19.1 million in third quarter 2026, of which $18.9 million related to the Sun Country acquisition, $1.3 million related to accelerated amortization of software identified for redevelopment, and $0.8 million related to accelerated depreciation of airframes identified for early retirement. These charges were partially offset by a benefit of $1.9 million related to final closing adjustments from the sale of Sunseeker Resort.

Previous wording

Passenger revenue. Passenger revenue increased $259.6 million or 21.0 percent, of which $105.5 million was contributed by Sun Country during the stub period.

Current wording

Passenger revenue. Passenger revenue increased $542.9 million or 31.4 percent, of which $262.3 million was contributed by Sun Country during the stub period.

Previous wording

The remaining increase is attributable to strength in demand, which drove a 14.0 percent increase in average total fare for Allegiant Air, including a 29.2 percent increase in scheduled service base fare. Allegiant Air passengers decreased by 0.7 percent on a scheduled service capacity reduction of 6.0 percent, resulting in a 3.9 percentage point increase in Allegiant Air load factor.

Current wording

The remaining increase is attributable to strength in demand, which drove a 16.8 percent increase in average total fare for Allegiant Air, including a 35.7 percent increase in scheduled service base fare. Allegiant Air passengers decreased by 0.3 percent on a scheduled service capacity reduction of 5.2 percent, resulting in a 3.6 percentage point increase in Allegiant Air load factor.

Previous wording

Third party products revenue. Third party products revenue increased $19.2 million or 27.9 percent, of which $1.3 million was contributed by Sun Country during the stub period.

Current wording

Third party products revenue. Third party products revenue increased $24.5 million or 22.6 percent, of which $3.6 million was contributed by Sun Country during the stub period.