Allegiant Merges with Sun Country Airlines in a Monumental $1.5 Billion Deal
In a significant consolidation move within the airline industry, Allegiant Travel Company made a public announcement on January 11, 2026. It declared its acquisition of Sun Country Airlines in a cash and stock transaction, valued at an approximate $1.5 billion, inclusive of debt. This merger is set to establish one of the foremost leisure-focused airlines in the United States.
As per the agreement terms, 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. Upon closing, the unified airline will operate a fleet of 195 aircraft, serving nearly 175 cities across more than 650 routes. It is projected to transport approximately 22 million passengers annually.
The combined company will have its headquarters in Las Vegas but will maintain a significant presence in Minneapolis-St. Paul, which is the base of Sun Country. The merged carrier will be led by Allegiant CEO Gregory C. Anderson. Meanwhile, Sun Country CEO Jude Bricker will join Allegiant’s board of directors as an advisor to ensure a smooth integration. The transaction has received unanimous approval from both companies’ boards and is expected to close in the second half of 2026, subject to regulatory approvals and shareholder consent.
This merger comes at a time when budget airlines are grappling with rising costs and increased competition from major carriers. The deal is anticipated to generate $140 million in annual synergies and will provide Allegiant with access to Sun Country’s cargo operations and international routes to Mexico and the Caribbean.
Source: CNBC