Allegiant Air acquires Sun Country Airlines in $1.5 billion deal

Allegiant Air, a leisure-oriented carrier based in Las Vegas, Nevada, has announced the acquisition of Sun Country Airlines for $1.5 billion in cash and stock. This amount includes $400 million of Sun Country Airlines’ debt, to be taken on by the acquiring airline.  

The deal, which was announced on January 11, 2026, has already been approved by the boards of directors of both airlines and is expected to be completed by the end of 2026, provided it doesn’t meet any objection from the competition authorities. 

The 0.1557 shares of Allegiant common stock and $4.10 in cash that Allegiant is offering to Sun Country shareholders represents has an implied value of $18.89, a premium of nearly 20% over the $15.77 closing share price of the airline’s stock on January 9, 2026. 

The two airlines have similar business models and largely complementary route networks. 

Allegiant, known for its culture of cost consciousness, focuses on linking multiple secondary cities throughout the United States to warm-weather destinations in Florida and the Caribbean.  

‘Sun-and-sand’ destinations are also a core market for Sun Country Airlines, although the carrier serves also a broad range of destinations throughout the US from its base at Minneapolis-Saint Paul International Airport (MSP). 

Once the merger is completed, the combined entity, which is expected to operate under the Allegiant brand and be led by Allegiant’s current CEO, Gregory C. Anderson, is set to carry around 22 million passengers per year and operate a dual fleet of Boeing and Airbus aircraft.  

According to the ch-aviation database, all but 16 of Allegiant’s 131 aircraft are Airbus A320-family aircraft, while Sun Country Airlines has 68 Boeing 737 aircraft in its fleet. The Minnesotan airline has also significant charter and freight businesses. The latter is conducted in partnership with e-commerce giant Amazon, with Sun Country Airlines operating 20 converted B737 freighters for Amazon’s Prime Air. Both the charter and business units are expected to continue operating as usual after the acquisition. 

In the press release announcing the deal, the two airlines stated that they expect to realize an estimated $140 million in annual synergies to result from the combination of their respective operations.  

RELATED

Sun Country cuts fleet capacity as aircraft spares shortages continue to bite  

The post Allegiant Air acquires Sun Country Airlines in $1.5 billion deal appeared first on AeroTime.

Go to Source