Published on: January 11, 2026, 07:43h.

Updated on: January 11, 2026, 07:46h.

• Allegiant Air has announced plans to purchase Sun Country Airlines for $1.5 billion.
• The merged airline will feature a fleet of 195 aircraft and offer over 650 routes to 175 destinations.
• The acquisition is forecasted to finalize in late 2026, leading to the discontinuation of the Sun Country brand.

Allegiant Air is set to acquire the Minnesota-based budget airline Sun Country Airlines in a transaction valued at $1.5 billion, combining cash and stock, as disclosed by both airlines on Sunday. This deal marks the creation of one of the largest leisure-centric carriers in the United States.

Following the completion of the deal — anticipated in the latter part of 2026, subject to approvals from shareholders and federal regulators — the Sun Country brand will be retired, and operations will solely reflect the Allegiant name. Allegiant will continue to operate from its headquarters in Las Vegas while retaining a major presence in Minneapolis–St. Paul, the long-standing home of Sun Country.

The combined airline will operate approximately 195 aircraft across more than 650 routes, reaching close to 175 cities, and will expand access to 18 international destinations including Mexico, Central America, Canada, and the Caribbean.

Executives from both companies have noted that there is minimal overlap in their routes, a factor they anticipate will ease regulatory scrutiny surrounding antitrust concerns.

“We have long respected Sun Country for their well-managed, flexible, and diversified business model that optimizes year-round operations and profitability,” said Allegiant CEO Gregory Anderson in a press statement. “By merging our complementary networks, we aim to broaden our reach to even more vacation destinations, including international spots.”

Sun Country CEO and President Jude Bricker remarked: “Both of our airlines are committed to customer satisfaction and delivering affordable travel options without sacrificing quality. This merger, we believe, presents tremendous value for Sun Country shareholders while allowing us to capitalize on our growth potential as a unified company.”

Anderson will continue as head of the merged company, while Bricker, a former Allegiant executive, will join the board of directors alongside two additional members from Sun Country’s board.

Examining the Financials

As part of the agreement, Sun Country shareholders are slated to receive 0.1557 shares of Allegiant stock plus $4.10 in cash for each share, placing a valuation of approximately $18.89 per share on Sun Country. This represents a 19.8% premium over its closing price of $15.77 as of January 10.

In the newly formed company, Allegiant shareholders will own approximately 67% on a fully diluted basis, while Sun Country shareholders will hold the remaining 33% stake.

The companies anticipate realizing $140 million in annual synergies by the third year post-merger, with profitability projected to increase in the first year after closing the deal.