Vegas-Based Allegiant Airlines to Acquire Sun Country
Posted on: January 11, 2026, 07:43h.
Last updated on: January 11, 2026, 07:46h.
- Allegiant Air will acquire Sun Country Airlines for $1.5 billion, the budget airlines announced Sunday
- The combined leisure carrier will operate 195 aircraft, and 650+ routes to 175 cities
- The deal expected is expected to close late 2026, resulting in the retirement of the Sun Country brand
Allegiant Air will acquire Minnesota-based Sun Country Airlines in a $1.5 billion cash and stock deal, the two budget airlines announced on Sunday. The approximately $1.5 billion cash and stock deal (including debt) will result in one of the largest leisure‑focused carriers in the US.
nce the transaction closes — expected in the second half of 2026, pending shareholder and federal regulatory approval — the Sun Country brand will be retired, and the combined airline will operate solely under the Allegiant name. Allegiant will maintain its headquarters in Las Vegas, while keeping a significant operational presence in Minneapolis–St. Paul, Sun Country’s longtime home base.
The merged carrier will operate a fleet of roughly 195 aircraft over more than 650 routes serving nearly 175 cities — including expanded access to 18 international destinations across Mexico, Central America, Canada, and the Caribbean.
Executives from both airlines stress that the carriers have minimal route overlap, a factor they believe will help the deal clear antitrust scrutiny.
“We have long admired Sun Country for their well-run, flexible, and diversified business model that optimizes for year-round utilization and strong margins,” Allegiant CEO Gregory Anderson said in a press release. “Together, our complementary networks will expand our reach to more vacation destinations including international locations.”
Sun Country CEO and president Jude Bricker added: “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.”
Anderson will lead the combined company, while Bricker — a former Allegiant executive — will join the board of directors along with two additional Sun Country board members.
Navigating The Numbers
Under the agreement, Sun Country shareholders will receive 0.1557 shares of Allegiant stock plus $4.10 in cash per share, valuing Sun Country at approximately $18.89 per share — a 19.8% premium to its unaffected closing price of $15.77 on January 10.
Allegiant shareholders will own approximately 67% of the combined company on a fully diluted basis, with Sun Country shareholders holding the remaining 33%.
The companies project $140 million in annual synergies by the third year after closing and expect the deal to be accretive to earnings in year one.
No comments yet