Allegiant Travel Company (ALGT) — ESG & Values Scores

Environment story

Allegiant scores 45/100 on environmental criteria. The company disclosed Scope 1 & 2 emissions are rising with fleet expansion (12.6% ASM growth in 2025), and Scope 3 emissions (product-usage carbon from aviation operations) are undisclosed and likely rising. No net-zero target year is disclosed in the 10-K or sustainability report mention. The company identified reliance on Boeing 737 MAX deliveries to meet 'environmental goals published in sustainability reports,' but no binding 2035/2045 net-zero commitment is stated in the filing. No major resource controversies (toxic waste, water) identified. The company acknowledges sustainability stakeholder pressure but frames it as reputational risk rather than operational commitment. Heavy offset reliance is not disclosed, but lack of quantified direct decarbonization infrastructure investment (e.g., electrification, hydrogen readiness) and disclosed reliance on SAF supply-chain incentives (acknowledged as commercially unviable without government support) suggests limited physical decarbonization. Greenwashing risk: company publicizes 'environmental goals' tied to aircraft delivery but does not quantify Scope 3 reduction targets or baseline emissions.

Criticisms on file

Undisclosed or rising Scope 3 emissions (product-usage carbon) amid 12.6% ASM growth in 2025.
Source: ALGT 10-K, Item 7 MD&A, Airline Operating Statistics; Risk Factors Item 1A (climate regulation and SAF commercial viability concerns).
No binding net-zero target year disclosed; company frames environmental goals as discretionary and subject to third-party SAF supply/government incentives.
Source: ALGT 10-K, Item 1A Risk Factors: 'Our ability to meet our environmental goals depends on various actions from third parties outside of our control... adoption of sustainable aviation fuels... would likely be commercially viable only with support and incentives from governmental initiatives.'
Reliance on aircraft delivery schedule (Boeing 737 MAX) for environmental credibility; delays risk missing stated environmental targets.
Source: ALGT 10-K, Item 1A Risk Factors: 'We are also counting on the timely addition of our firm 737 MAX order to meet environmental goals we have published in our sustainability reports.'
EPA GHG endangerment finding (2016) and emerging ICAO/EPA/FAA emissions standards (effective 2028 for in-production aircraft); potential future regulatory cost increases not quantified.
Source: ALGT 10-K, Item 1A Risk Factors: 'In the future, there may be an increasing legislative and regulatory focus on aviation's impacts on the environment. These developments and any additional legislation or regulations addressing climate change are likely to increase our costs of doing business in the future and the increases could be material.'

Disclosed initiatives

Boeing 737 MAX Fleet Transition

Firm order for 50 Boeing 737 MAX aircraft; 16 delivered as of Feb 2026. Company states expectation of 'fuel savings and operational reliability' and links aircraft to 'environmental goals published in sustainability reports.' Remaining 34 aircraft expected delivery through 2028.

Expected fuel efficiency improvement vs. older Airbus A320/A319 fleet (avg age 17.2 years), but no quantified percentage reduction disclosed.
Fleet Retirement & Right-Sizing

Accelerated retirement of 24 Airbus airframes to align with 737 MAX deliveries; 6 additional Airbus aircraft retired in 2025. Reduces maintenance complexity and older-aircraft emissions footprint.

Modest operational carbon reduction; no quantified Scope 1/2/3 impact stated.
Sustainability Report Publication

Company published fourth annual sustainability report in 2025; acknowledged in MD&A risk discussion. No full report text provided in filing.

Transparency medium; substantive environmental targets not disclosed in 10-K.

Social story

Allegiant scores 62/100 on social criteria. CEO-to-median-worker pay ratio is not disclosed; estimated to exceed 200:1 based on typical airline executive compensation, triggering a -15 deduction (unverified; no explicit disclosure found). Union-suppression activities and major strikes within 24 months: No active suppression found, but significant labor-management friction exists. Pilot collective bargaining agreement has been amendable since 2021 with ongoing NMB mediation; company unilaterally accrued $235.9 million pilot retention bonus (as of Dec 31, 2025) in recognition of industry pay escalation. No documented NLRB complaints or strike activity within last 24 months; however, labor tensions are elevated. Leadership diversity (executive/board): Not disclosed in 10-K; no explicit percentage provided for women or underrepresented groups in executive/board roles. Assumed <30% based on typical airline industry baseline and absence of disclosed DEI metrics. Supply-chain human rights: Not disclosed; no audit mentioned for cobalt, lithium, or other conflict minerals in supply chain. Aircraft suppliers (Boeing, MRO vendors) not audited for labor practices in filing.

Criticisms on file

Pilot collective bargaining agreement amendable since 2021 (4+ years) with ongoing NMB mediation; no resolution as of Dec 31, 2025 filing. Risk of labor disruption (job actions, self-help) noted in Risk Factors.
Source: ALGT 10-K, Item 1A Risk Factors: 'The pilot agreement has been amendable since 2021 and in 2023, the parties jointly sought mediation through the National Mediation Board (the "NMB"). We continue to mediate with the union through the NMB.' Also MD&A: 'The lack of a new collective bargaining agreement with our pilots (under negotiation since 2021) could exacerbate the challenge to maintain sufficient numbers of pilots to fly our published schedule and to grow our network.'
Contingent pilot retention bonus of $235.9M (as of Dec 31, 2025) deferred until contract ratification; creates balance-sheet liability and risk of cash outflow shock upon agreement.
Source: ALGT 10-K, Item 7 MD&A: 'For the year ended December 31, 2025, we recorded estimated pilot retention bonus accruals of $89.8 million bringing the total accrual to $235.9 million at year end, including the related payroll taxes. The bonus will be paid to all pilots remaining employed with us after ratification of a new collective bargaining agreement.'
Executive leadership and board diversity metrics not disclosed in 10-K; no explicit DEI program, supplier diversity, or civil rights audit mentioned.
Source: ALGT 10-K sections reviewed; no diversity metrics, HRC CEI score, or EEO-1 disclosure found.
Supply-chain labor practices (aircraft suppliers, MRO vendors) not audited or disclosed; no modern slavery statement or conflict minerals policy disclosed.
Source: ALGT 10-K sections reviewed; no supply-chain labor audit, forced-labor flag, or conflict-minerals policy disclosed.
Risk of labor disruption (job actions, slowdowns) during Sun Country merger integration due to seniority integration disputes under Railway Labor Act (RLA) and McCaskill-Bond Act.
Source: ALGT 10-K, Item 1A Risk Factors: 'The need to integrate Sun Country's workforce with ours following the proposed acquisition of Sun Country presents the potential for delay in achieving expected synergies, increased labor costs or labor disputes that could adversely affect our operations.'

Disclosed initiatives

Pilot Retention Bonus Program

Effective May 2023, company began accruing retention bonus of 35% of current hourly pay (82% for first-year first officers), minimum 85 pay credit hours/month. Total accrual $235.9M as of Dec 31, 2025. Payable upon new collective bargaining agreement ratification.

Positive: addresses pilot pay gap relative to industry; stabilizes pilot staffing. Negative: deferral of cash payment until contract ratification creates contingent liability and potential labor unrest if negotiations stall.
Ongoing NMB Mediation (Pilots)

Company and IBT jointly sought NMB mediation in Jan 2023; mediation continuing as of 10-K filing (Dec 2025). Company acknowledges 'pilot pay scales have increased significantly in the industry' and expects next contract to 'reflect industry competitive rates which will be significantly higher than our current pilot rates.'

Neutral/positive: active engagement in structured mediation; acknowledgment of market wage pressure. Risk: prolonged negotiations could trigger self-help (slowdowns, work-to-rule) if mediation breaks down.
Flight Attendant Ratification Bonus (2024)

Special charge of unspecified amount in 2024 for flight attendant ratification bonus; agreement becomes amendable in 2029.

Positive: recent labor accord; multi-year wage stability until 2029.

Governance story

Allegiant scores 68/100 on governance criteria. Board independence percentage not disclosed in 10-K; assumed to be below 75% absent explicit disclosure, triggering -15 deduction. Dual-class share structure: No dual-class share structure identified; single-class common stock with restricted foreign ownership voting caps (federal requirement, not dual-class supermajority). Share structure penalty not applied. Lobbying spend: Not disclosed in 10-K; no explicit lobbying expenditure reported. Company does not appear to lobby for climate deregulation; rather, it frames environmental regulation as a future cost risk and notes current administration's deregulatory stance as favorable ('unlikely that the current Presidential administration and U.S Congress will continue the prior legislative and regulatory concern with the environmental impacts of the air transportation industry'). Antitrust/Consumer-safety/Financial-fraud proceedings: No active antitrust case disclosed; ongoing shareholder litigation risk related to Sun Country merger (noted in Risk Factors) but no adverse judgment yet. DOT consumer-protection compliance and fines: Company subject to DOT regulations and notes potential fines if non-compliant; no specific current or pending fines disclosed. Greenwashing litigation check: No evidence of shareholder climate proposal blocking lawsuits. SEC consent decrees: None disclosed. Board independence and governance structure opacity drives primary deduction.

Criticisms on file

Board independence percentage not disclosed in 10-K; no explicit statement of board composition or independent director count.
Source: ALGT 10-K sections reviewed; no board independence metric or governance committee charter summary found.
CEO and key executive compensation not disclosed in 10-K; no proxy statement or DEF 14A included in filing.
Source: ALGT 10-K does not include proxy statement or executive compensation disclosures; standard 10-K limitation.
Shareholder litigation pending related to Sun Country merger; litigation could delay or prevent deal close and incur substantial costs.
Source: ALGT 10-K, Item 1A Risk Factors: 'Securities class action lawsuits and derivative lawsuits are often brought against public companies that have entered into acquisition, merger, or other business combination agreements. Even if such a lawsuit is without merit, defending against or settlement of these claims can result in substantial additional costs and diversion of management time and resources.'
Merger agreement non-solicitation provisions restrict Allegiant's ability to accept competing acquisition proposals; termination fee of $52.23M may deter superior offers.
Source: ALGT 10-K, Item 1A Risk Factors: 'The Merger Agreement contains non-solicitation provisions that... restrict our ability to solicit, initiate, or knowingly encourage or facilitate competing third-party proposals... In some circumstances, upon termination of the Merger Agreement, we may be required to pay a termination fee of $52,230,000.'
No key-man insurance on CEO Gregory Anderson or other executives; departure of CEO could materially harm business.
Source: ALGT 10-K, Item 1A Risk Factors: 'Our business depends upon the efforts of our chief executive officer, Gregory Anderson, and a small number of executive management personnel. We do not currently maintain key-man life insurance on Mr. Anderson or any other executives.'
Cybersecurity and data-breach risk; company maintains self-insurance for cyber-related risks which may be insufficient.
Source: ALGT 10-K, Item 1A Risk Factors: 'We maintain a combination of risk mitigation strategies, including self-insurance for certain cyber-related risks, which may not be sufficient to cover all potential losses.'

Disclosed initiatives

DOT Consumer-Protection Compliance

Company subject to expanded DOT consumer-protection rules (2024, Jan 2025) including mandatory five-year validity of airline vouchers/credits and increased civil penalties for noncompliance. Company acknowledges costs from new technological and operational systems.

Neutral: compliance-driven, not discretionary governance enhancement.
Nevada Antitakeover Statutes Retained

Company subject to NRS 78.378-78.3793 (control-share acquisition) and NRS 78.411-78.444 (interested-stockholder restrictions) but has not opted out. Board retains ability to approve certain acquisitions within 10-day window.

Negative: limits shareholder voting rights on hostile acquisitions; reduces takeover threat and potential discipline mechanism.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Allegiant Travel Company. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Allegiant Travel Company in the app for interactive charts and portfolio building.

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