Budget airline Allegiant to acquire Sun Country in $1.5 billion merger

WASHINGTON — Allegiant Airlines, one of the top budget airlines in America, announced Sunday it is merging with Sun Country Airlines to create a “leading leisure-focused U.S. airline.”

The combined company will have more than 650 routes, including at least 18 international ones to Mexico, Canada, the Caribbean and Central America, and will expand nonstop service to popular vacation spots, the companies announced in a press release.

“Allegiant and Sun Country are well positioned to create one of the most adaptable and resilient airline models in the industry, with the ability to respond quickly to changing market conditions, traveler demand, and charter and cargo partner needs.”

There is no impact to tickets, flight schedules, travel or the Sun Country brand until the deal is closed. Customers can continue to fly with, book through and use Sun Country and Allegiant business as usual. The deal is expected to close in the second half of 2026. 

The combined airline will have roughly 195 aircraft, with 30 on order and an additional 80 options, the companies said. 

“Together, our complementary networks will expand our reach to more vacation destinations including international locations,” Allegiant CEO Gregory C. Anderson said. “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.”

“We are two customer-centric organizations, deeply committed to delivering affordable travel experiences without compromising on quality,” Sun Country President & CEO Jude Bricker said. 

Allegiant will acquire Sun Country in a cash and stock transaction at $18.89 per Sun Country share. All Sun Country shareholders will get 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country stock owned, the press release said. 

The deal is valued at roughly $1.5 billion, including Sun Country’s $400 million debt.

Once the deal is closed, the combined company will be headquartered in Las Vegas but will keep a “significant presence” in Minneapolis-St. Paul where Sun Country is based, the companies said.