Key insights
- Allegiant Travel Company exercised options to purchase six Boeing 737-8 aircraft, increasing its firm order total to 56. The new aircraft are scheduled for delivery in 2028. Additionally, Allegiant entered into new employment agreements with its executive officers, extending their contracts through 2029 and outlining new compensation packages. These actions signal continued fleet expansion and executive stability for Allegiant, while also representing a firm order for Boeing.
Allegiant Travel Company (NASDAQ:ALGT) reported this week that its subsidiary, Allegiant Air, LLC, has exercised options to purchase six Boeing 737-8 aircraft under its existing 2021 purchase agreement with The Boeing Company. The agreement, documented in supplemental agreements signed October 19, 2026, brings Allegiant’s firm order total with Boeing to 56 aircraft, with 22 already delivered as of Friday. The six newly ordered aircraft are scheduled for delivery in 2028. The list price for these aircraft exceeds $720 million, though final prices are subject to discounts and escalations.
Following the exercise of these options, Allegiant retains 74 additional options under the Boeing purchase agreement. Details regarding the supplemental agreements are expected to be filed as exhibits to Allegiant’s annual report for the year ending December 31, 2026.
Separately, as of Thursday, Allegiant entered into new employment agreements with its executive officers: Gregory Anderson, Robert Neal, Drew Wells, and Tyler Hollingsworth. The new contract for Mr. Anderson supersedes his previous 2024 agreement and extends through the end of 2029, maintaining his role as chief executive officer. Under the agreement, Mr. Anderson’s annual base salary is set at $750,000, with eligibility for a target cash bonus of 180% of base salary and a target stock grant equal to 300% of base salary, subject to performance criteria set by the company’s Compensation Committee.
Mr. Neal will continue as president and chief financial officer under an agreement expiring at the end of 2029, with a base salary of $525,000, a target cash bonus of 150% of base salary, and a target stock grant of 225% of base salary. Both Mr. Wells, executive vice president and chief commercial officer, and Mr. Hollingsworth, executive vice president and chief operating officer, will receive base salaries of $475,000, with target cash bonuses of 125% of base salary and target stock grants of 195% of base salary.
The agreements provide for severance benefits, including salary continuation, cash bonuses, continued fringe benefits, and accelerated vesting of certain stock grants in the event of termination without cause, resignation for good reason, or termination due to death or disability.
This information is based on a statement in an SEC filing by Allegiant Travel Company.
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