Allegiant Travel Co. has announced plans to buy Sun Country Airlines in a $1.5 billion deal that will bring the two commercial airlines together under one company. The deal, which has received approval from both companies’ boards, is expected to close in the second half of 2026 after pending antitrust clearance.
Allegiant-Sun Country Acquisition: Deal Terms
Allegiant stated that the deal would expand its network through adding international leisure destinations while keeping costs low. The combined airline would be based in Las Vegas, with continued operations in Minneapolis-St. Paul, where Sun Country is headquartered.
Sun Country shareholders will receive $18.89 per share, consisting of $4.10 in cash and 0.1557% shares of Allegiant Travel stock.
After closing the deal, Sun Country shareholders will own about 33% of the combined company, while Allegiant shareholders will hold the remaining 67%. Moreover, the transaction also includes about $400 million in Sun Country debt. Therefore, Allegiant Travel will remain the publicly traded parent company.
Until regulatory approvals are finalised, Allegiant Air and Sun Country will continue to operate under their current names. At that point, the two airlines’ operating certificates will be merged under Allegiant. Allegiant’s CEO Gregory C. Anderson will lead the combined company, while Sun Country CEO Jude Bricker will join Allegiant’s board, alongside two additional directors.
Fleet Plans Following the Takeover
Both airlines shared that their route networks largely complement each other. Sun Country mainly operates from its base in Minneapolis-St.Paul, flying leisure routes to southern destinations and the Caribbean. Similarly, Allegiant Air operates domestic flights from 23 bases across the United States, with a strong presence in Florida and the Southwest.
Furthermore, fleet compatibility is expected to improve as Allegiant continues its shift to Boeing 737 MAX aircraft. Allegiant currently flies Airbus A319 and A320 jets, along with Boeing 737-8-200s, and has more MAX aircraft on order. Sun Country operates Boeing 737-800 and 737-900ER aircraft, as well as freighters used for Amazon cargo operations, which the companies added will continue after the takeover.
How could this acquisition reshape low-cost flying from Minneapolis-St. Paul? We welcome your views in the comments!
