Allegiant Exercises 6 Options to Buy Boeing Aircraft at List Prices Exceeding $720 Million
Key Facts
Allegiant Air, a subsidiary of Allegiant Travel, has exercised its first 6 options to buy aircraft from Boeing under an agreement dating to 2021, according to a summary of a draft deal announcement published on StockSavvy.ai. The deal covers 6 737-8 aircraft, with combined list prices exceeding $720 million. That figure is subject to discounts and escalations, according to the summary, so it represents a list value rather than a final purchase amount disclosed by the company. The aircraft are scheduled for delivery in 2028, placing the deal within a delivery schedule extending over the coming years. The available announcement did not include independent confirmation from the company or an official filing that would allow the details of the option exercise to be verified.
The deal dates to an agreement Allegiant reached in 2021 to buy 50 new aircraft from the 737 MAX family, with options to buy additional aircraft. The company said in its annual report that the agreement was amended so the remaining deliveries would be completed between 2026 and 2028, and that it provides options to buy up to 80 additional aircraft. This context places the exercise of the 6 options within a broader contractual commitment with Boeing and CFM International, rather than as an order separate from the original agreement. The option to buy 80 aircraft also represents a ceiling for additional options, not a number the company says it has decided to buy in full.
Allegiant had expected to take delivery of 7 aircraft in the second half of 2026, with the other contracted aircraft due in 2027 and 2028, according to its quarterly report filed with the U.S. Securities and Exchange Commission. The company said aircraft delivery delays could affect its ability to schedule further growth when demand conditions allow. The warning puts delivery dates at the center of its capacity-addition plans, as the company explicitly links aircraft arrivals to the possibility of expanding its flight schedule. The 6 new aircraft are scheduled to arrive in 2028, according to the deal announcement summary, at the end of the delivery window the company cited in its report.
Fleet data in the quarterly report show that Allegiant was operating 19 Boeing 737 MAX 8200 aircraft in passenger service on June 30, 2026, compared with 16 on December 31, 2025. The company had taken delivery of 20 737 MAX aircraft from its Boeing order by June 30, 2026, and said all had entered revenue service. The delivery and operating figures in the filing differ according to their definitions: the first includes aircraft the company has taken delivery of under the order, while the second counts MAX 8200 aircraft listed in passenger service on the two measurement dates. These figures provide a picture of the model’s integration into the company’s operations ahead of the scheduled delivery of the 6 new aircraft.
The 737 MAX share of Allegiant’s available seat miles rose to about 21% in the second quarter of 2026, compared with about 11% in the second quarter of 2025, according to the quarterly report. The metric measures the model’s contribution to offered capacity, not the number of aircraft alone, and shows that the MAX’s share of operations nearly doubled between the two periods, based on the percentages reported by the company. In the context of deliveries from 2026 to 2028, the filing links aircraft arrivals to the possibility of scheduling further growth if demand allows, while keeping delivery delays among the risks identified by the company. The report did not specify a financial impact of the new deal on the company.
On cabin upgrades, Allegiant said its Allegiant First premium seating class will appear on future MAX aircraft, with service expected to begin in spring 2027. The company’s announced timeline means the class is expected to appear before the 6 new aircraft are delivered in 2028, but the filing does not specify whether those 6 aircraft will include the class. ALGT shares closed at $70.36 on October 22, 2026, according to EL7 data. The available data in this file do not include a session high or low, and do not specify the stock’s move in response to the deal.