Allegiant Set to Purchase Sun Country in a $1.5 Billion Leisure Travel Merger
In a significant consolidation move within the U.S. airline industry, Allegiant Travel Company has announced its plans to acquire Sun Country Airlines in a $1.5 billion cash and stock transaction. Unveiled on January 11, 2026, this deal is set to create one of the leading leisure-focused carriers in America by combining two complementary ultra-low-cost airlines.
As per the agreement, Sun Country shareholders will receive $18.89 per share—a 19.8% premium over the January 9 closing price. The merged airline will operate a fleet of 195 aircraft, serving nearly 175 cities with more than 650 routes across the U.S., Mexico, Central America, Canada, and the Caribbean. With an annual passenger count of 22 million, the merger is expected to generate $140 million in annual synergies.
Both airlines’ boards have unanimously approved the transaction, which is expected to close in the second half of 2026, pending regulatory approvals and shareholder votes. The combined company will be headquartered in Las Vegas, while maintaining a significant presence in Minneapolis-St. Paul. Allegiant CEO Greg Anderson noted that the carriers have virtually no route overlap, which should facilitate regulatory approval. Sun Country’s cargo contracts with Amazon will continue post-merger.