Allegiant converts six Boeing 737 options into firm orders

Allegiant ($ALGT) disclosed that it has exercised options for six Boeing ($BA) 737-8 aircraft under its existing purchase agreement. Deliveries are scheduled for 2028. The additional commitments bring the agreement to 56 firm aircraft, including 22 already delivered, and leave another 74 purchase options available. The supplemental agreements were signed earlier in October and have now been disclosed in a securities filing.

The six aircraft carry a combined list price exceeding $720 million, but actual prices are subject to contractual discounts and escalation through delivery. That headline figure should therefore not be treated as the amount Allegiant will ultimately pay or Boeing will recognize as revenue. The conversion strengthens Boeing’s firm order position and commits Allegiant to additional future fleet capacity; it does not mean the aircraft have been delivered.

Sources:

• SEC filing
• Release via StockTitan
• SEC filing excerpt via Goslee Signals