Allegiant and Sun Country Unite in a $1.5B Deal to Broaden US Air Routes
In a significant consolidation move announced on January 11, 2026, Allegiant Travel Company and Sun Country Airlines have agreed to a $1.5 billion merger. This deal will birth a leading leisure-focused airline in the United States. The cash-and-stock transaction will merge two budget carriers serving complementary markets, thereby expanding service to nearly 175 cities and over 650 routes.
As per the agreement, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each share owned. This represents a 19.8% premium. Upon closing, expected in the second half of 2026, Allegiant shareholders will own approximately 67% of the combined company, with Sun Country shareholders holding the remaining 33%.
The merger will result in a fleet of approximately 195 aircraft, all Boeing 737s, serving 22 million annual passengers. “Together, our complementary networks will expand our reach to more vacation destinations including international locations,” said Allegiant CEO Gregory Anderson, who will lead the combined airline. The deal is projected to generate $140 million in annual operating synergies within three years, primarily through enhanced network connectivity and operational efficiencies.
The combined airline will maintain headquarters in Las Vegas while keeping a significant presence in Minneapolis-St. Paul. Travelers will benefit from expanded access to Sun Country’s international network across Mexico, Central America, Canada, and the Caribbean. This will offer service from small and mid-sized cities to 18 international destinations.
Source: Dallas News