In an effort to reshape the low-cost flying segment, Allegiant Air and Sun Country Airlines have an announcement of a strategic partnership that will expand route networks, enhance connectivity, and offer more affordable travel options across the United States.
They announced the definitive merger agreement under which 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 approximately $1.5 billion, inclusive of $0.4 billion of Sun Country's net debt. Upon closing, Allegiant and Sun Country shareholders will own approximately 67% and 33%, respectively, of the combined company on a fully diluted basis.
The combination will create a leading leisure-focused U.S. airline, expanding service to more popular vacation destinations across the United States, as well as international destinations, and providing more people with access to affordable, convenient air travel.
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.
The combination of two financially strong leisure carriers in the U.S. will create benefits for customers, communities, employees, and partners by enhancing stability, expanding opportunities, and enabling continued investment and innovation.
The merged company will have Greg Anderson as its CEO who is an Allegiant shareholder with an approximate ownership of 67 percent in the new company.
Jude Bricker, the CEO of Sun Country will be put on board. Close to the second half of 2026, the transaction is expected to be closed, subject to regulatory approval, and shareholder approval.
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 & CEO, 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."
The combination brings together complementary route networks across Allegiant's small and mid-sized localities and Sun Country's larger cities and will provide more than 650 routes, including 551 Allegiant routes and 105 Sun Country routes.
This combination will connect MSP to Allegiant's mid-sized markets, and expand nonstop service to popular vacation spots, with a continued focus on underserved markets across the U.S. while expanding opportunities into international locations.
With access to Sun Country's vast international network across Mexico, Central America, Canada, and the Caribbean, the combined airline will offer Allegiant customers access to expanded service from its small and mid-sized cities to 18 international destinations.
Allegiant Air, founded in 1997 as WestJet Express, was rebranded in 2000 and went public in the year 2013. The Las Vegas based carrier focuses on leisure travel from small cities to vacation destinations, operating 129 Boeing B737 fleet of aircraft to more than 120 destinations.
Allegiant expects to achieve $140 million in annual synergies within three years following the closing and integration, primarily driven by the ability to provide more customers with more options across the combined network. Expected cost savings and revenue synergies are also expected from scale efficiencies, fleet optimization, and procurement.
Sun Country Airlines, that started in the year 1982, transitioned to ULCC in 2017 after Delta's stake sale. The Minneapolis based carrier specializes in vacation packages, with a fleet of 50 Boeing B737-800 planes to around 80 destinations. The carrier witnessed a strong growth with 4 million passengers and $1 billion revenue last year.
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