Allegiant Travel Company and Sun Country Airlines announced they have signed a definitive merger agreement under which Allegiant will acquire Sun Country in a cash-and-stock transaction valued at about $1.5 billion, creating a larger leisure-focused U.S. carrier with roughly 22 million annual customers, service to nearly 175 cities, more than 650 routes, and an operating fleet of about 195 aircraft.
Under the terms, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country share, for an implied value of $18.89 per Sun Country share. Allegiant said the offer represents a 19.8% premium to Sun Country’s Jan. 9, 2026, closing price of $15.77 and values Sun Country at approximately $1.5 billion, including roughly $0.4 billion of net debt.
Upon closing, Allegiant and Sun Country shareholders are expected to own about 67% and 33% of the combined company, respectively, on a fully diluted basis. The companies said the deal has been unanimously approved by both boards and is expected to close in the second half of 2026, subject to customary conditions including U.S. federal antitrust clearance and shareholder approvals.
The companies framed the combination as a scale play in leisure travel, pairing Allegiant’s focus on small and mid-sized markets with Sun Country’s presence in larger cities anchored by Minneapolis–St. Paul. Allegiant said the combined network will include 551 Allegiant routes and 105 Sun Country routes, while also expanding Allegiant customers’ access to Sun Country’s international footprint, which the companies said includes 18 destinations across Mexico, Central America, Canada, and the Caribbean.
Allegiant also highlighted Sun Country’s diversified model that includes cargo flying and contracted charter operations. Sun Country is a narrow-body freighter operator with a multi-year agreement supporting Amazon’s air cargo network, and it also operates charter flying for a range of customers including sports organizations and government-related travel, according to the announcement. Allegiant said combining those activities with its existing charter business should provide more stable, year-round utilization.
The companies said the transaction is expected to generate $140 million in annual run-rate synergies by the third year after closing and to be accretive to earnings per share in the first year post-closing. Allegiant also said it expects the combined company’s net adjusted debt-to-EBITDAR leverage to be below 3.0x at closing, and it emphasized fleet flexibility from operating both Airbus and Boeing aircraft. Allegiant said the combined airline will have about 30 aircraft on order and an additional 80 options, and it expects greater scale to support utilization of Allegiant’s Boeing 737 MAX fleet and order book.
For customers, the carriers said there will be no immediate changes to bookings, schedules, or the travel experience, and Sun Country will continue to operate under its brand while the airlines pursue a single operating certificate from the Federal Aviation Administration. Allegiant said the combined company will continue under the Allegiant name, remain headquartered in Las Vegas, and maintain a significant presence in Minneapolis–St. Paul as a key base and “anchor city.”
Leadership of the combined company will remain with Allegiant Chief Executive Officer Gregory C. Anderson, who will serve as CEO after closing, with Robert Neal set to serve as president and chief financial officer. Sun Country President and CEO Jude Bricker will join Allegiant’s board, along with two additional Sun Country directors, expanding the board to 11 members, and Bricker is expected to serve as an advisor to Anderson during integration. Maury Gallagher will continue as board chairman.
The companies also said they plan to combine their loyalty programs, citing Sun Country’s more than 2 million members and Allegiant’s 21 million member base, with an aim to expand earning options and increase flexibility for travelers.
KEY QUOTES:
“This combination is an exciting next chapter in Allegiant and Sun Country’s shared mission in providing affordable, reliable, and convenient service from underserved communities to premier leisure destinations. We have long admired Sun Country for their well-run, flexible, and diversified business model that optimizes for year-round utilization and strong margins. Together, our complementary networks will expand our reach to more vacation destinations including international locations. With our combined strengths– including operational excellence, consistent profitability, strong balance sheets, and fleet ownership, we will create an even more resilient and agile airline that delivers greater value to travelers, partners, Team Members, shareholders, and the communities we serve.”
Gregory C. Anderson, CEO, Allegiant
“Over Sun Country’s 43-year history, we have grown to become one of the nation’s most respected low-cost, leisure airlines with a unique business model for serving scheduled service and charter passengers as well as delivering cargo, with a strong brand and deep roots in Minnesota. Today marks an exciting next step in our history as we join Allegiant to create one of the leading leisure travel companies in the U.S. We are two customer-centric organizations, deeply committed to delivering affordable travel experiences without compromising on quality. Importantly, we believe this transaction delivers significant value to Sun Country shareholders and an opportunity to continue to benefit from our growth plans as a combined company.”
Jude Bricker, President and CEO, Sun Country Airlines
