Allegiant to Acquire Sun Country Airlines for $1.5 Billion

Key Points

• Allegiant will acquire Sun Country Airlines for $1.5 billion, creating one of the largest leisure-focused U.S. airlines.
• The combined airline will serve 22 million passengers annually, cover nearly 175 cities, and operate 195 aircraft, with Allegiant shareholders owning 67% of the new company.
• The merger is expected to generate $140 million in annual synergies, maintain both brands until regulatory approvals, and keep a strong presence in Minneapolis–St. Paul.

Summary

Allegiant has announced a $1.5 billion acquisition of Sun Country Airlines, aiming to form one of the largest leisure-focused carriers in the United States. The combined airline will operate 195 aircraft across nearly 175 cities, serving 22 million passengers each year. The transaction, expected to close in late 2026 pending approvals, brings together complementary networks and business models, with Allegiant as the parent company and a commitment to maintain Sun Country's presence in Minneapolis–St. Paul. Leadership changes include Sun Country's CEO stepping down to join the board, and the merged company anticipates significant cost synergies and expanded destination offerings.