Las Vegas, United States: U.S. low-cost carrier Allegiant Travel Company has reached a definitive agreement to acquire rival Sun Country Airlines in a cash-and-stock transaction valued at approximately USD 1.5 billion, marking a significant consolidation in the nation’s leisure airline segment.
Under the terms of the deal announced Sunday, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and USD 4.10 in cash for each share held, valuing Sun Country equity at about USD 18.89 per share a premium of nearly 19.8% over the airline’s closing price prior to the announcement. The enterprise value includes around USD 400 million of Sun Country’s net debt.
The combined airline will operate under the Allegiant name and be headquartered in Las Vegas, with a significant operational presence maintained in Minneapolis–Saint Paul, Sun Country’s home base. The boards of both carriers have unanimously approved the transaction, which is expected to close in the second half of 2026, subject to regulatory and shareholder approvals.
Once completed, the merged carrier will serve nearly 175 cities with more than 650 routes and operate an expanded fleet of about 195 aircraft, including additional orders and options across Boeing and Airbus models. The combination broadens Allegiant’s traditional focus on small and mid-sized U.S. markets with Sun Country’s larger city footprints and international leisure destinations in Mexico, the Caribbean, Canada and Central America.
Allegiant Chief Executive Officer Gregory C. Anderson said the merger would strengthen both airlines’ shared mission “in providing affordable, reliable, and convenient service from underserved communities to premier leisure destinations,” citing complementary networks and expanded international opportunities. Sun Country President and CEO Jude Bricker described the deal as delivering “significant value” to shareholders and customers.
Allegiant anticipates approximately USD 140 million in annual synergies within three years of closing, driven by scale efficiencies, fleet optimization and integrated scheduling. The transaction is also expected to be accretive to earnings per share in the first year after closing.
Following completion, Allegiant shareholders will own about 67% of the combined company, with Sun Country shareholders holding roughly 33% on a fully diluted basis. Anderson will remain chief executive officer of the combined airline, with Robert Neal named president and chief financial officer. Bricker will join the combined board of directors.
Despite the merger, both carriers will continue operating independently under their current brands until they receive a single operating certificate from the Federal Aviation Administration (FAA), a process that typically unfolds over several months. Allegiant and Sun Country have stated that the transaction will have no immediate effect on ticketing, flight schedules or customer experience.
The agreement comes amid broader consolidation trends in the U.S. airline industry, particularly among low-cost and leisure carriers seeking to boost competitiveness against larger legacy airlines.
