Allegiant Air and Sun Country Airlines given clearance to merge

The U.S. Department of Justice has granted antitrust clearance to Allegiant Air and Sun Country Airlines, in a decision that removes a major regulatory hurdle in a planned merger between the two airlines.

A vision for a new airline

The two budget airlines initially announced their plans to merge on Jan. 11, 2026, in a deal reportedly worth $1.5 billion. Sun Country stated on its website that this move would create a “leading, more competitive leisure-focused U.S. airline.”

The merger is expected to expand the choices currently available to both airlines’ customers, providing fliers with over 650 routes across more than 175 cities. Importantly, Allegiant Air, which currently does not serve any international destinations, would now have access to Sun Country’s route map. The airline will also benefit from becoming connected to Sun Country’s headquarters and transport hub Minneapolis-St. Paul International Airport.

These plans also have implications for both airlines’ shareholders. Current Sun Country shareholders will receive $18.89 per share, each comprising $4.10 in cash and a 0.1557 share in parent company Allegiant Travel. Once the transaction is closed, shareholders of Sun Country Airlines will hold around a 33% stake in the newly-combined company, while the shareholders of Allegiant Travel will retain the other 67%.

Both companies have continued to operate separately since the announcement of the merger, pending regulatory approval. The antitrust clearance is one of the first major steps towards moving these plans forward.

Chief executive of Allegiant Air, Greg Anderson, said in a statement:

“We are pleased to receive US antitrust clearance from the Department of Justice. We remain confident that this combination will deliver meaningful benefits.”

What comes next?

The receival of antitrust clearance is a huge milestone for the two airlines, and means that the merger is now expected to be finalised later this year, which is earlier than previously anticipated.

However, there are still other regulatory steps that must be completed before the plans can go ahead. This includes acquiring approval from both companies’ shareholders and the U.S. Department of Transport.

Once the merger is eventually completed, both companies will operate together under the name Allegiant, and Allegiant Travel will remain the parent company for the new airline.

Have you ever flown with Allegiant or Sun Country? What do you think about the merger? Let us know in the comments below!