Allegiant exercises options for six Boeing 737 MAX jets worth over $720 million

Alaska Airlines Boeing 737 MAX 9 showcases the aircraft’s modern design, distinctive livery, and advanced narrowbody aviation technology. Image reference: Wikipedia – Alaska Airlines Boeing 737 MAX 9

Allegiant Air, the low-cost American airline, has exercised its purchase options for an additional six Boeing 737-8 MAX planes in accordance with the earlier contract between the company and the manufacturer.

The announcement was made on October 23, 2026, and constitutes one part of the airline’s plan to update its fleet. All six airplanes will be delivered in 2028, and the total cost will surpass $720 million, according to Reuters.

Scheduled Aircraft Deliveries in 2028

The most recent deal was formally put into writing on October 19, 2026, using supplementary agreements to the 2021 aircraft purchase deal signed by Allegiant.

Under the deal, the company currently has firm commitments to acquire 56 aircraft, which include 22 aircraft that have been delivered as of October 23. The company also has the option to purchase 74 other aircraft, and details were disclosed in the company's regulatory filing.

The Actual Cost of the Aircraft May Be Less Than List Price

Despite the fact that the six Boeing 737-8 aircraft have a total price list exceeding $720 million, this does not mean that the same figure is going to be paid by Allegiant.

This is because aircraft manufacturers usually negotiate various prices with the airlines they deal with. According to aviation consultancy firm IBA, the six aircraft have a total value of about $351 million due to their delivery date.

Boeing 737 MAX aircraft flies above the clouds, showcasing its aerodynamic design, advanced winglets, and fuel-efficient narrowbody configuration. Image reference: Wikipedia – Boeing 737 MAX, N7201S

Allegiant Utilizes Boeing 737 MAX for Upgraded Fleet

These additional planes help in bolstering the transition by Allegiant towards new-generation Boeing narrow-body planes, following many years of use of a fleet of aircraft consisting mostly of Airbus A319 and A320 planes.

The Boeing 737 MAX series includes engines and other aerodynamic design changes aimed at cutting fuel burn when compared to previous 737 generations. With more planes in the same series joining its fleet, Allegiant may find it easier to train crews for Boeing operations. Additional information is available from AeroTime.

The Significance of the New Aircraft Order for Allegiant

The pledge of six airplanes is beneficial for Allegiant's pipeline of future deliveries, but also leaves room for other possible purchases. The availability of airplanes that can be delivered in 2028 will give Allegiant some time to plan its fleet, maintenance, and operations needs.

Nonetheless, future growth will depend on the demand for passengers, financing, and delivery of new planes. For more information about the recent deal, see Allegiant's disclosures and Reuters news articles.

Author: Kevin Macmellon

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