Allegiant Travel Company has agreed to acquire Sun Country Airlines in a cash‑and‑stock transaction valued at approximately $1.5 billion, including $400 million of Sun Country’s net debt. The deal values each Sun Country share at $18.89, a 19.8 % premium to the Friday, January 9, 2026 close of $15.77, and will give Allegiant shareholders 67 % ownership of the combined company while Sun Country shareholders receive 33 %.
The merger expands Allegiant’s reach into Sun Country’s strong Midwest markets and adds international destinations in Mexico, Central America, Canada, and the Caribbean. By combining Allegiant’s 120‑aircraft fleet with Sun Country’s 75, the new carrier will operate 195 aircraft and serve 175 cities, carrying an estimated 22 million passengers annually. The deal also brings Sun Country’s profitable charter and cargo operations into the mix, providing a diversified revenue stream that can cushion seasonal demand swings and enhance overall profitability.
Management projects $140 million in annual synergies by the third year after closing, driven by cost savings from shared operations, revenue enhancements from expanded route options, and the ability to leverage a unified Boeing‑centric fleet. The synergy plan focuses on consolidating maintenance, training, and procurement functions, while cross‑selling ancillary services across a larger customer base. The combined entity will also benefit from Sun Country’s established Amazon Air cargo partnership, which has proven resilient during periods of passenger market volatility.
Greg Anderson, Allegiant’s CEO, said the combination “creates a leading leisure‑focused carrier that can serve underserved communities and popular vacation destinations with greater scale and efficiency.” Robert Neal, who will serve as President and CFO, highlighted the financial discipline that will underpin the integration, while former Sun Country CEO Jude Bricker noted that the deal “provides Sun Country shareholders with significant value and a path to continued growth.” Their comments underscore the complementary nature of the two airlines and the confidence management has in delivering the projected synergies.
The transaction is expected to close in the second half of 2026 and will require U.S. federal antitrust clearance, FAA operating‑certificate approval, and shareholder approval. Regulatory scrutiny is expected to be favorable because the route overlap between the two carriers is minimal—only one overlapping route—reducing concerns about market concentration. Once approved, the combined airline will operate under a single operating certificate, streamlining regulatory compliance and operational oversight.
The acquisition positions Allegiant as the dominant leisure‑airline in the UnitedAmerica, strengthening its competitive moat and creating long‑term value for shareholders. By integrating Sun Country’s charter and cargo capabilities, the new carrier gains a diversified revenue base that can offset seasonal passenger demand fluctuations. The deal also accelerates Allegiant’s strategy to expand into international markets, giving it a broader geographic footprint and a more resilient business model in a highly competitive industry.
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