Allegiant Air said it will acquire Sun Country Airlines in a cash-and-stock deal valued at about $1.5 billion, including debt, in a move combining two low-cost U.S. carriers focused on leisure travel.
Executives at both carriers said their route networks complement each other and that the larger airline would increase affordable travel options for passengers. The merged airline will serve about 175 cities with more than 650 routes and a fleet of roughly 195 aircraft, the companies told investors Monday.
“Allegiant and Sun Country have both shown that our leisure-focused, flexible capacity models are strong, thriving and consistently profitable, which gives me great confidence in the potential benefits of combining our organizations,” Allegiant CEO Gregory Anderson said.
The deal still needs approval from regulators and Sun Country shareholders. It is expected to close in the second half of 2026.
The airlines said travelers shouldn’t expect any immediate changes and can continue booking and flying with either carrier as they normally do. Ticketing, flight schedules, the overall travel experience and the Sun Country brand will remain the same for now.
The merged airline will operate under the Allegiant name and will be headquartered in Las Vegas. It will also maintain a significant presence in the Minneapolis–St. Paul area, where Sun Country is based, while also continuing to operate Sun Country’s charter and cargo businesses, the companies said.
Anderson will lead the combined airline as CEO, and Sun Country CEO Jude Bricker will join the company’s board of directors.
“I’ve had the privilege of working at both companies and can say that based on those experiences, this is a tremendous fit across the board,” said Bricker, who previously served as Allegiant’s chief operating officer in 2016 and 2017.
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