Allegiant Travel Company Acquires Sun Country Airlines in a $1.5B Mega Merger
In a significant consolidation move announced on January 11, 2026, Allegiant Travel Company has agreed to acquire Sun Country Airlines in a $1.5 billion cash and stock transaction. This merger will create one of the leading leisure-focused airlines in the United States.
As per the agreement, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country share owned. This represents a premium of 19.8% over Sun Country’s closing share price.
The combined airline will serve 22 million annual passengers across nearly 175 cities with more than 650 routes spanning the U.S., Mexico, Central America, Canada, and the Caribbean.
Both Las Vegas-based Allegiant and Minneapolis-based Sun Country cater to cost-conscious leisure travelers, connecting smaller cities to vacation destinations. Sun Country also operates charter flights and cargo services for Amazon, which analysts view as crucial to the deal’s strategic value. Interestingly, the carriers have virtually no route overlap, with only one competing route between them.
The transaction has been unanimously approved by both boards and is expected to close in the second half of 2026, pending regulatory approvals and shareholder approval. The combined company will be headquartered in Las Vegas while maintaining a significant presence in Minneapolis-St. Paul.
Source: Allegiant Air