Allegiant Air To Acquire Sun Country Airlines In $1.1 Billion Deal

Allegiant Air plans to acquire Sun Country Airlines in a definitive merger agreement for roughly $1.1 billion in cash and stock. The deal which has already gotten the green light by both airline boards, is pending shareholder approval and U.S. federal antitrust clearance.

Allegiant will acquire Sun Country in a cash and stock transaction at an implied value of $18.89 per Sun Country share. Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country share owned, representing a premium of 19.8% over Sun Country’s closing share price of $15.77 on January 9, 2026, and 18.8% based on the 30-day volume-weighted average price.

The transaction values Sun Country at $1.5 billion, inclusive of about $400 million in debt. When closed, Allegiant and Sun Country shareholders will own 67% and 33% of the combined company respectively.

For now, both brands will continue to operate as separate entities until they receive a single air operator’s certificate (AOC). Once all the paperwork is done, the Sun Country brand will be done away with, and the new entity will continue under the Allegiant name.

Unlike the failed JetBlue/Spirit merger, the two airlines in this scenario blend well, both operating in the low-cost leisure sector, with non-overlapping networks. Allegiant does a good job flying into small and underserved cities, while Sun Country operates somewhat on a hybrid/low-cost basis, combining leisure, charters and cargo under its portfolio.

In terms of respective route networks, Sun Country has a huge presence out of Minneapolis–Saint Paul, connecting passengers to various parts of the United States, Central America and the Caribbean.

On the other hand, Allegiant operates solely in the United States, but has a strong presence out of multiple cities including Las Vegas, Phoenix, multiple airports in Florida and Nashville. When the deal is done, the new company will offer just over 650 routes and will have just over 195 aircraft in its fleet.

Sun Country is an all-Boeing operator, flying 44 737-800s and two 900ERs, along with 20 737-800 freighters. Allegiant on the other hand has a mixed fleet of Airbus and Boeing aircraft, but are also slowly shifting towards a Boeing model with more MAX 200 pending delivery, along with 24 MAX 7s due once that aircraft type receives FAA certification. These 737s will be used to replace their older Airbus A320s and A319s.

Gregory C. Anderson, Allegiant CEO, said, “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. 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. 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.”

Jude Bricker, Sun Country President and CEO (and ex-Chief Operating Officer of Allegiant Travel Company), said, “Over Sun Country’s 43-year history, we have grown to become one of the nation’s most respected low-cost, leisure airlines with a unique business model for serving scheduled service and charter passengers as well as delivering cargo, with a strong brand and deep roots in Minnesota. Today marks an exciting next step in our history as we join Allegiant to create one of the leading leisure travel companies in the U.S. 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.”

This generally looks to be a good deal as both airlines have been mostly profitable over the last few years, and operate using similar models. Both brands have their own respective niches carved out, so I can only expect better things once the two networks are combined, and moving to a mostly Boeing 737 fleet should help simplify training and maintenance operations. I suspect the deal is even sweeter given that Sun Country’s Jude Bricker previously worked for Allegiant as their COO.

With Sun Country being taken over and losing its identity in the long run, there are already concerns that the MSP hub may eventually be downsized, but both carriers have so far promised to keep the city on the forefront. How that plays off in the long run, we’ll just have to wait and see.

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