Allegiant plans to acquire Sun Country Airlines in a deal that would combine the U.S. leisure carriers under the Allegiant brand.
The combined company would be headquartered in Las Vegas and maintain a significant presence in Sun Country’s largest base of Minneapolis-St. Paul, Minn.
Allegiant expects to close the cash-and-stock transaction in the second half of 2026. The deal that values Sun Country at approximately $1.5 billion, inclusive $400 million in net debt, is subject to U.S. federal antitrust clearance as well shareholder and other regulatory approvals.
Together the two carriers serve nearly 175 cities, with more than 650 routes. Upon closing, the combined carrier will operate approximately 195 aircraft, with 30 on order and an additional 80 options.
Sun Country’s passenger fleet consists of Boeing 737NGs; it also operates 737-800F freighters on behalf of Amazon, and spent 2025 largely focused on its cargo flying. Allegiant operates a mix of Airbus A320 family, and 737-8-200s. Combined, the airlines will have the scale to more fully utilize Allegiant's 737 MAX fleet and orderbook, the companies noted.
Within three years of closing and integration, Allegiant expects to achieve $140 million in annual cost and revenue synergies.
"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,” said Allegiant CEO Gregory C. Anderson. “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.”
Sun Country CEO Jude Bricker said the combination marked the next chapter in his carrier's 43-year history, saying the transaction would "create one of the leading leisure travel companies in the U.S." He called it "an opportunity to continue to benefit from our growth plans as a combined company."
Following the deal’s close, Allegiant would continue as the publicly held parent company. Anderson will serve as CEO of the combined operation and Allegiant President Robert Neal as President and CFO. Bricker will join the Board along with two additional Sun Country board members, expanding Allegiant’s board to 11. Allegiant Chairman Maury Gallagher will retain that position for the combined entity.
“Allegiant buying Sun Country is the best news to come from the Value Airline sector in a very long time,” Swelbar Zhong Consultancy chief industry analyst William Swelbar said. “Strength begets strength,” he said in a client note. The combination allows the carriers to build on areas of strength, creating a better foundation to adjust to changing industry dynamics, he added.
Upon closing, Allegiant shareholders will own approximately 67% of the company, with Sun Country investors holding the remaining 33%.
The two companies said that, jointly, they “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.”
Allegiant and Sun Country will discuss the transaction during an investor call scheduled for Jan. 12.
