Allegiant Travel Company (NASDAQ: ALGT) updated its first quarter 2026 financial guidance, raising its adjusted earnings outlook despite higher fuel costs, according to a company statement.

The airline now expects adjusted earnings per share of $3.25 to $3.75 for the first quarter, up from previous guidance of $2.50 to $3.50. The company also raised its adjusted operating margin guidance to 13.5% to 14.5% from the prior range of 12.0% to 15.0%.

Allegiant expects first quarter 2026 to represent a record quarter for total revenue, despite system capacity being down approximately 5.5% year-over-year. The company cited demand that has outperformed expectations since its previous guidance issued February 4, 2026.

Fuel costs have increased significantly during the quarter due to geopolitical factors. The company now expects first quarter fuel cost per gallon of approximately $3.00, compared with previous guidance of $2.60.

The guidance reflects the company's assessment of impacts from a major winter storm affecting parts of the U.S. through March 16, 2026, though additional impacts could arise. Allegiant management is scheduled to present at the J.P. Morgan Industrials Conference on March 17, 2026.

The company did not update its full-year outlook, citing recent volatility in fuel prices. Allegiant stated it will provide an updated view as fuel price trends become clearer.

The guidance excludes any contribution from Allegiant's planned acquisition of Sun Country Airlines.