Published on: May 14, 2026, at 10:15 AM.
Updated on: May 14, 2026, at 10:16 AM.
- Allegiant Airlines is enhancing its Las Vegas operations through the addition of Sun Country.
- Allegiant’s acquisition of Sun Country was valued at $1.5 billion.
- Executives at Allegiant are prioritizing stability over aggressive expansion.
Allegiant Airlines, headquartered in Las Vegas, is boosting its footprint at Harry Reid International Airport.
This week, Allegiant finalized its acquisition of Sun Country Airlines, valued at $1.5 billion in cash and stock. The deal for the Minneapolis-based ultra-low-cost airline was first unveiled in January.
According to Harry Reid Airport, the primary gateway for visitors and business travelers to Las Vegas resorts and convention centers, Allegiant ranked seventh among airlines for passenger numbers in March, with 164,566 passengers.
In contrast, Sun Country ranked a distant eleventh, accommodating just 23,893 travelers. However, Allegiant’s acquisition is expected to enhance its Las Vegas operations and increase passenger numbers shortly.
Allegiant’s Focus on Stability
In light of Spirit Airlines’ closure, Allegiant’s CEO Greg Anderson shared with CNBC that the company is concentrating on stability amid a challenging operational landscape, primarily due to soaring oil prices influenced by the ongoing conflict in Iran.
“Our strategy is designed to protect our margins rather than pursue aggressive growth,” Anderson stated.
Post-acquisition, Allegiant services 175 cities with over 650 routes. Anderson mentioned that during periods of low demand, the airline would temporarily ground planes and scale back operations.
Rising jet fuel prices are being passed on to travelers, with fare increases and higher baggage fees across major US airlines likely affecting travel plans. This presents a challenge for tourism in Las Vegas.
Data from the Las Vegas Convention & Visitors Authority indicates a 7.5% decrease in visitor numbers for 2025 compared to 2024, resulting in over 3.12 million fewer visitors to Las Vegas last year.
There is a slight upward trend in 2026, with a 0.4% increase in visitors through March, translating to about 39,400 more guests in the first quarter.
Visitor traffic in Las Vegas for 2026 has predominantly come from local drive-in traffic, with Q1 air passenger traffic at LAS down by 5%, totaling roughly 12.5 million travelers—a drop of nearly 678,000 compared to Q1 of 2025.
Airline Pricing in Las Vegas
With ongoing tensions related to the Iran conflict, high jet fuel prices are impacting airline forecasts significantly.
Recently, Southwest Airlines, the main operator in Las Vegas, projected second-quarter earnings to be about 50 cents per share, falling short of previous estimates of 55 cents.
Southwest chose not to revise its full-year outlook, with CEO Robert Jordan informing stakeholders that making such adjustments “would not be beneficial at this juncture.”
“Fuel prices have escalated significantly. If this trend continues, higher ticket prices will be necessary to offset the fuel cost increases,” Jordan admitted.
In April, Southwest transported 1.9 million passengers in Las Vegas, with Delta Airlines trailing far behind at 456,000 passengers.