Allegiant Travel Company announced it has completed its acquisition of Sun Country Airlines Holdings, creating what the companies describe as the leading leisure-focused airline in the United States.
The transaction closed after receiving the required regulatory approvals and shareholder approvals from both companies. The combined airline will operate a fleet of 195 aircraft, serve nearly 175 cities, and transport approximately 22 million annual customers across more than 650 routes.
According to the companies, the merger is expected to expand network reach, improve operational scale, and strengthen diversified operations across scheduled passenger service, charter operations, and cargo services.
Customers will continue booking through existing airline channels for now, with no immediate changes to reservations, schedules, loyalty programs, or customer service operations. Both airlines will continue operating under their existing brands in the near term while integration efforts move forward.
The combined company said Minneapolis-St. Paul will remain an important operational hub, reflecting Sun Country’s longstanding presence in Minnesota. Existing collective bargaining agreements will remain in place, and frontline operational employees will continue in their current roles during the integration process.
Financially, Allegiant expects approximately $140 million in annual synergies within three years following integration. The company said the merger is expected to be accretive to earnings per share in the first full year after closing while maintaining balance sheet flexibility.
The merger also expands Allegiant’s diversification strategy through Sun Country’s cargo operations for Amazon Prime Air and charter agreements involving casinos, Major League Soccer teams, collegiate athletic programs, and the U.S. Department of Defense.
The combined airline will also gain additional fleet flexibility with 30 aircraft currently on order and 80 additional purchase options.
Following the completion of the acquisition, Sun Country shares ceased trading on the NASDAQ exchange, while Allegiant Travel Company continues trading under the ticker symbol ALGT.
Gregory C. Anderson will serve as Chief Executive Officer of the combined company, while Robert Neal will serve as President and Chief Financial Officer. Jude Bricker, Jennifer Vogel, and Thomas C. Kennedy have joined Allegiant’s Board of Directors.
KEY QUOTE:
“Today marks a defining moment in Allegiant’s history as we officially join forces with Sun Country to create the leading leisure-focused airline in the United States. With a combined fleet of 195 aircraft serving nearly 175 cities, we are expanding access to affordable, reliable, and convenient travel for the communities that have long been the foundation of our business, while offering customers broader reach and more destinations. By bringing together two strong airlines with similar business models, we are creating a more differentiated and durable airline, one well positioned to deliver lasting value for our customers, team members, and shareholders. I want to recognize Team Allegiant and Team Sun Country, whose dedication and hard work made this day possible.”
Gregory C. Anderson, CEO, Allegiant Travel Company
