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Allegiant and Sun Country Airlines have announced a definitive merger agreement that will unite two of the nation’s low-cost leisure carriers under a single parent company. The transaction is valued at approximately $1.5 billion including net debt and will be completed through a mix of cash and stock. It’s expected to close in the second half of 2026 pending regulatory and shareholder approval.
Under the agreement, Allegiant will acquire Sun Country for $18.89 per share in implied value (representing a premium of nearly 20% over Sun Country’s most recent closing price). Upon completion, Allegiant shareholders will own roughly 67% of the combined company with Sun Country shareholders holding the remaining 33%.
The merger brings together airlines built on flexible capacity strategies, diversified operations, and strong ancillary revenue models. Together, the carriers serve 22 million annual passengers across nearly 175 cities with more than 650 routes and a combined fleet of 195 aircraft. The combination will expand affordable vacation-focused connectivity across the United States and international destinations while leveraging Sun Country’s footprint in Mexico, Central America, Canada, the Caribbean, and Allegiant’s strength in small and mid-sized markets.
The merged entity is positioned to create one of the industry’s most adaptable models through shared scheduling flexibility, charter services, and cargo partnerships. Sun Country’s long-term agreements in freighter operations and charter flying, including contracts with Amazon Prime Air, professional sports leagues, and government agencies, will complement Allegiant’s existing charter business to offer year-round stability and diversified revenue.
Management projects up to $140 million in annual synergies by year three after closing and expects the deal to be accretive to earnings within the first year. A stronger loyalty program will merge more than 23 million combined members and feature expanded earning options, enhanced benefits, and greater redemption flexibility.
Both companies emphasized cultural alignment, career opportunities, and operational stability for employees. Labor groups, pilots, flight attendants, mechanics, and ground personnel will continue under existing collective bargaining agreements during integration. Long-term, leadership anticipates expanded career pathways, cross-training opportunities, and increased year-round flying.
The combined airline will continue under the Allegiant name once a single operating certificate is achieved, but both carriers will operate independently in the interim with no immediate changes for customers. The parent company will be headquartered in Las Vegas while maintaining a significant presence in Minneapolis-St. Paul (Sun Country’s home base).
Leadership plans include Allegiant CEO Gregory C. Anderson continuing that role in the merged organization with Robert Neal serving as President and CFO. Sun Country CEO Jude Bricker will join the board alongside two additional Sun Country directors (as the board expands to 11 members).
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, added,
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 US 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.”
Anthony’s Take: With regulatory scrutiny and antitrust review ahead, the merger seeks to create a uniquely low-cost, leisure-focused airline with operational flexibility, expanded destination access, and diversified income streams. This seems like the right administration to make this move and I think we’ll see this one happen. If approved, this would also be a good sign for future mergers and acquisition (a la United and JetBlue).
(Image Credits: Allegiant and Sun Country.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
