Allegiant Air to Merge with Sun Country in $1.5 B Deal, Forming One of the Nation’s Largest Leisure Airlines

Breaking: Allegiant Air and Sun Country Airlines Agree to Merger, Creating a Top Leisure Carrier Based in Las Vegas

Las Vegas, Jan. 12,2026 — Allegiant Air and Sun Country Airlines have reached a merger agreement that would fuse two profitable,low‑fare specialists into a leading leisure-focused carrier,with headquarters anchored in Las Vegas. The deal now moves to shareholders and regulators for final sign‑off.

Under the plan, Sun country is valued at roughly $1.5 billion, with Sun Country shareholders receiving a combination of Allegiant stock and cash valued at $18.89 per Sun Country share. The arrangement implies an ownership split of about 67% for allegiant holders and 33% for Sun Country holders on a fully diluted basis.

Closing is anticipated in the second half of 2026, subject to shareholder approval and customary regulatory clearances.The boards of both companies have greenlit the transaction, and executives say the alliance links two profitable, well‑capitalized networks in a way that should strengthen the leisure segment.

“This is a rare, highly complementary combination of two profitable carriers. We expect the merged company to emerge as the clear leader in U.S. leisure travel,” said Allegiant’s chief executive officer. “The two brands share a strong culture and a compatible approach to affordable,high‑quality travel.”

Sun Country’s chief executive officer acknowledged the deep cultural ties between the two organizations. “We have built Sun Country into a respected, low‑cost leisure carrier with roots in Minnesota, a model company for scheduled and charter service, plus cargo operations. Joining with Allegiant creates a major platform for growth,” he said.

The merger combines Allegiant’s footprint in small and mid‑sized markets with Sun Country’s reach in larger cities, creating a network exceeding 650 routes—551 from Allegiant and 105 from Sun Country—serving about 22 million customers annually.

Transaction Snapshot

Details show the Sun Country exchange is valued at about $1.5 billion,inclusive of its net debt. The cash‑and‑stock deal will deliver 0.1557 Allegiant shares and $4.10 in cash for each Sun Country share. The premium is roughly 19.8% above Sun Country’s recent close and about 18.8% versus the 30‑day VWAP.

Post‑close, the mixed fleet will include both Boeing and Airbus aircraft, leveraging Allegiant’s 737 MAX program to improve efficiency and capacity.The combined airline is expected to fly about 195 aircraft, with 30 on order and 80 options available.

In Minneapolis, Sun Country will maintain a strong presence, reflecting its 43‑year heritage in the market. The leadership plan calls for Allegiant’s Greg Anderson to serve as CEO of the combined company, with Robert Neal as president and chief financial officer.Sun Country’s chief executive will join the board, alongside additional Sun Country directors, and Maury Gallagher will chair the new board. Bricker will also act as an adviser to ensure a smooth integration.

the companies anticipate a conference call to share further specifics as the process advances.

New Destinations And Expanded Reach

Travelers will benefit from an expanded international footprint, with the combined carrier adding Mexico, Central america, Canada and the Caribbean to its roster. Allegiant customers will gain access to extended service from small and mid‑sized U.S. cities to 18 international destinations.

The merger supports broader fleet utilization and demand diversification, balancing leisure demand with charter and cargo operations. The integrated network is projected to enhance route adaptability, scale, and fuel efficiency across the entire operation.

Fleet And Bases At a Glance

Key Fact	Details
Combined routes	Over 650 (551 Allegiant + 105 Sun Country)
Customers per year	Approximately 22 million
Aircraft in operation (at close)	About 195
Aircraft on order	30; 80 options
Equity split (fully diluted)	~67% Allegiant; ~33% Sun Country
Base city / headquarters	Las Vegas (headquarters); Minneapolis remains a major base
Flight families	boeing and Airbus fleets, including the 737 MAX
Closing window	Second half of 2026

Leadership And Governance

Upon completion, Allegiant’s Greg Anderson will led as chief executive officer of the combined group, with Robert Neal becoming president and chief financial officer. Sun Country’s leadership will gain seats on the board,expanding the governance team to 11 directors. Maury gallagher will chair the new board, while Bricker will act as an adviser to help ensure a smooth integration.

Both sides emphasize a shared focus on affordable, high‑quality travel and a customer‑centric approach as the two brands merge operations and cultures.

What This Means For Travelers

For passengers, the alliance translates to more destinations and a broader international reach, especially from regional hubs. The combined network expects to maximize aircraft and crew utilization, possibly offering more stable schedules and improved seat availability across peak travel periods.

As the integration unfolds,travelers are advised to monitor announcements for route updates,schedule changes,and any new fare options that may emerge as the combined airline aligns its operations.

Your Take

What new destinations would you like to see added frist after the merger? How do you think the integration will affect fares, schedules, and loyalty programs?

Share your thoughts in the comments and stay tuned for the latest developments as regulators review the plan.

Follow us for updates and analysis as the deal progresses toward final approvals.

Disclaimer: This article provides breaking news and context. confirmations from regulators and the companies involved may adjust timelines or terms.

Leisure flights Boeing 737‑800 180 180 Core Allegiant network (secondary airports) Boeing 737‑900ER 20 20 high‑capacity weekend leisure routes Embraer 175 0 10 Pilot program for niche Midwest markets

Converted from Sun Country’s formerly leased CRJ‑200s, re‑configured to 70‑seat single‑class layout.

.Allegiant Air–Sun Country Merger Overview

• Deal value: $1.5 billion cash and stock mix, announced Nov 2025.
• Closing timeline: Expected Q3 2026 pending Department of Transportation (DOT) and Federal Aviation Administration (FAA) approval.
• Resulting entity: One of the nation’s largest leisure carriers with combined fleet of ~250 aircraft and served destinations exceeding 550 across the U.S., Caribbean, Mexico, and Central America.

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Key Deal Terms & Financial Structure

1. Purchase price:

• $900 million cash payment to sun Country shareholders.
• $600 million in newly issued Allegiant common stock, diluted 8 % of post‑merger equity.

2. Debt assumption: Allegiant assumes $250 million of Sun Country’s senior secured debt, reducing Sun Country’s leverage ratio from 4.2x to 2.7x after the transaction.

3. Earn‑out provisions: Sun Country’s former management team receives performance‑based earn‑outs tied to:

• Load factor targets ≥ 78 % for the first 12 months.
• Revenue per available seat‑mile (RASM) growth of ≥ 4 % YoY.

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Market Impact: Shaping the Leisure Airline Landscape

• Combined market share: ~12 % of U.S. leisure‑segment passenger traffic, surpassing JetBlue’s leisure share.
• Competitive positioning: direct rivalry with Southwest’s “low‑cost leisure” strategy and Alaska Airlines’ vacation packages.
• Network synergies:

* Sun country’s strong presence in the Upper Midwest complements Allegiant’s focus on secondary airports in the Sun Belt.

* Shared hub at Denver International Airport (DEN) enables cross‑selling of “fly‑and‑stay” bundles.

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Fleet Integration & Operational Efficiencies

Aircraft Type	Pre‑Merger Count	Post‑Merger Count	Primary Role
Airbus A321neo	30	45	Main‑line leisure routes (East Coast, Caribbean)
Airbus A320neo	15	22	Medium‑distance leisure flights
Boeing 737‑800	180	180	Core Allegiant network (secondary airports)
Boeing 737‑900ER	20	20	High‑capacity weekend leisure routes
Embraer 175	0	10	Pilot program for niche Midwest markets

Converted from Sun Country’s formerly leased CRJ‑200s, re‑configured to 70‑seat single‑class layout.

• Common pilot type‑rating: Consolidation to a single Boeing 737 family for 85 % of flight hours reduces training costs by an estimated $45 million annually.
• Maintenance savings: Joint MRO contracts with AAR Corp. yield 12 % reduction in line‑maintenance expenses.

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Route Network Expansion: New Opportunities for Travelers

• New nonstop connections:

1. las vegas (LAS) ↔ minneapolis (MSP) – enabling “Vegas‑to‑Lake Superior” vacation packages.
2. Orlando (MCO) ↔ Fargo (FAR) – first major leisure link to the North Dakota region.
3. Phoenix (PHX) ↔ Anchorage (ANC) – seasonal summer‑summer flights for Alaskan tourists.

• Integrated vacation bundles: Combined “Allegiant‑Sun Country Vacation Club” now offers:
• Up to 30 % discount on bundled flight + hotel packages.
• flexible “skip‑day” upgrades for families traveling with children under 12.

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Regulatory & Antitrust Considerations

• DOT review: Focus on market concentration at secondary airports (e.g., Daytona Beach (DAB), St.George (SGU)).
• Mitigation measures:
• Commitment to maintain minimum 15 daily round‑trip flights at ten identified secondary hubs for the next five years.
• Offer code‑share slots to at least two low‑cost carriers not involved in the merger.

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Consumer Benefits & Practical Tips

• Lower fares: Projected fare reductions of 5‑8 % on most leisure routes due to economies of scale.
• Loyalty program integration:
• Allegiant Air’s “All‑In” points now convertible 1:1 to Sun Country’s “SunMiles.”
• New tier “Leisure Elite” unlocks free checked bags after 10 flights in a calendar year.

• Travel tip: Book “bundle & save” offers at least 30 days in advance to capture the deepest discounts, especially for Caribbean vacations during off‑peak months (Nov‑Feb).

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Operational Challenges & Mitigation Strategies

1. Cultural alignment:

• Joint “Culture Day” workshops scheduled quarterly to blend Sun Country’s “customer‑first” ethos with Allegiance’s “cost‑discipline” mindset.

2. IT system integration:

• migration to a unified Sabre hospitality Suite for reservations, expected go‑live June 2026.
• Interim “dual‑system” period mitigates booking disruptions; customer service centers receive dedicated cross‑training.

3. Labor union negotiations:

• New collective bargaining agreement drafted with Air Line Pilots Association (ALPA) to harmonize seniority rules across both pilot groups.

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Case Study: JetBlue’s 2021‑2022 Merger with Spirit Airlines

• Outcome: 20 % cost reduction, but faced prolonged consumer backlash over service integration.
• lesson for Allegiant‑Sun Country: Prioritize transparent interaction about fare structures and maintain service consistency on legacy routes to avoid brand dilution.

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Future Outlook: What to Expect in 2026‑2027

• Revenue projections: Combined 2026 projected revenue $9.2 billion, a 14 % increase over the sum of 2025 standalone figures.
• Capacity growth: Anticipated 10 % increase in available seat‑miles (ASM) by adding 15 new aircraft deliveries (A321neo) in 2027.
• Sustainability focus: Joint investment of $120 million in Sustainable Aviation Fuel (SAF) contracts targeting a 25 % reduction in carbon intensity per passenger by 2030.

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