Allegiant agrees to buy Sun Country for $1.5B, creating a larger leisure airline with expanded routes, loyalty benefits, and $140M in expected synergies.
Allegiant Travel Company and Sun Country Airlines said they have entered into a definitive merger agreement under which Allegiant will acquire Sun Country in a cash-and-stock transaction valuing the carrier at approximately $1.5 billion, including net debt.
Under the terms of the deal, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each share owned, implying a value of $18.89 per share. The offer represents a premium of nearly 20 percent over Sun Country’s closing price on January 9. Following the close, Allegiant shareholders will own about 67 percent of the combined company, with Sun Country shareholders holding the remaining 33 percent on a fully diluted basis.
The transaction brings together two leisure-focused airlines with flexible capacity models, serving a combined 22 million annual passengers across nearly 175 cities. Together, the carriers will operate more than 650 routes and a fleet of roughly 195 aircraft, with an emphasis on underserved markets and popular U.S. and international vacation destinations.
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Executives said the merger would create a more resilient airline with diversified revenue streams, combining scheduled passenger service with long-term charter and cargo operations. Sun Country is a major narrow-body cargo operator through its multi-year partnership with Amazon Prime Air, while both airlines maintain charter relationships with sports teams, casinos, and government customers.
“This combination is an exciting next chapter in our shared mission to provide affordable, reliable service from underserved communities to premier leisure destinations,” said Gregory C. Anderson, Allegiant’s chief executive. He said the carriers’ complementary networks, strong balance sheets, and operational discipline would create a more agile airline able to adapt to shifting travel demand.
Jude Bricker, president and chief executive of Sun Country, said the deal marked a milestone in the airline’s 43-year history. “We believe this transaction delivers meaningful value to our shareholders while allowing us to continue our growth plans as part of a larger, customer-focused leisure airline,” he said.
Allegiant expects the transaction to generate approximately $140 million in annual synergies by the third year after closing and to be accretive to earnings per share in the first year following completion. The companies also plan to combine their loyalty programs, expanding earning options, benefits, and flexibility for travelers across a larger network.
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The combined airline will remain headquartered in Las Vegas, with a continued significant operational presence in Minneapolis–St. Paul, Sun Country’s home base. Allegiant will continue as the publicly traded parent company, and both airlines will operate separately until they receive a single operating certificate from the Federal Aviation Administration.
The deal has been unanimously approved by both boards and is expected to close in the second half of 2026, subject to regulatory approvals and shareholder consent.
