Allegiant Travel to Acquire Sun Country Airlines in $1.5 Billion Deal

Allegiant Travel Company has announced its plan to acquire Sun Country Airlines in a cash-and-stock transaction valued at approximately $1.5 billion. This merger, revealed on January 11, 2026, will allow Allegiant to expand its operations significantly, combining the strengths of both airlines to serve a broader customer base.

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Under the terms of the agreement, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each share they own, which values Sun Country shares at $18.89. This offer represents a premium of about 19.8% over Sun Country's closing stock price of $15.77 prior to the announcement. The deal includes approximately $400 million in net debt from Sun Country.

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The merger aims to create a leading leisure-focused airline in the U.S., with a combined fleet of around 195 aircraft and operations across approximately 175 cities, offering more than 650 routes, including 18 international destinations in Mexico, Canada, the Caribbean, and Central America. Allegiant CEO Gregory C. Anderson emphasized that the merger would enhance the airlines' ability to provide affordable travel options and expand their reach to vacation destinations.

Allegiant to Acquire Sun Country in $1.5B Deal, Creating Leisure Airline Giant

Upon completion of the merger, Allegiant shareholders will own about 67% of the combined entity, while Sun Country shareholders will hold approximately 33%. Gregory C. Anderson will continue as CEO of the merged company, with Robert Neal serving as president and chief financial officer. Sun Country CEO Jude Bricker will join the board of directors.

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The combined airline is projected to generate approximately $140 million in annual synergies by the third year post-merger and is expected to be accretive to earnings per share in the first year. The merger is also anticipated to enhance the loyalty programs of both airlines, providing expanded earning options and benefits for customers.

The Points Guy

The merger is subject to regulatory approval from the Trump administration and is expected to close in the second half of 2026. Critics of airline mergers often raise concerns about reduced competition and potential impacts on pricing and service quality. However, both companies assert that this merger will create a more competitive leisure airline landscape.

The Points Guy

The Allegiant and Sun Country merger represents a significant consolidation in the U.S. airline industry, particularly among budget carriers. As the deal progresses through regulatory channels, both airlines will continue to operate separately until the merger is finalized, ensuring that current operations and customer experiences remain unaffected in the interim.

The Points Guy