Allegiant Air Completes Acquisition of Sun Country Airlines

‍DALLAS — Allegiant Travel Company today announced it has successfully completed its US$1.5 billion acquisition of Sun Country Airlines Holdings, Inc. The transaction brings together two complementary carriers – Allegiant Air (G4) and Sun Country (SY) – focused on affordable leisure travel.

Allegiant shareholders own roughly 67% of the combined entity, while Sun Country shareholders retain approximately 33%. The combination expands Allegiant's network, increases its scale, and enhances its diversified operating model.

"Today marks a defining moment in Allegiant's history as we officially join forces with Sun Country to create the leading leisure-focused airline in the United States," said Allegiant CEO Gregory C. Anderson. "With a combined fleet of 195 aircraft serving nearly 175 cities, we are expanding access to affordable, reliable, and convenient travel for the communities that have long been the foundation of our business, while offering customers broader reach and more destinations. We are creating a more differentiated and durable airline – one well positioned to deliver lasting value for our customers, team members, and shareholders."

Separate entities – for now

Both airlines will continue to operate as separate carriers in the near term. They will maintain their separate brands, and customers can continue to book travel through existing channels. There are no changes to current reservations, flight schedules, or travel plans. However, over time, the carriers will pursue a single FAA operating certificate.

According to the company, Allegiant Allways Rewards and Sun Country Rewards will remain separate in the near term, and members' points, benefits, and account status will retain their current value.

The combination brings together complementary strengths, including:

• Expanded access to leisure destinations across the U.S. and select international markets
• A diversified model supported by scheduled service, charter, and cargo operations
• Increased scale to support long-term growth and operational resilience

Allegiant says that there will be no immediate changes to frontline roles. Operational employees will continue in their current positions, and the company will work closely with labor representatives throughout the integration process. All existing collective bargaining agreements will remain in place.

The combined company expects that Minneapolis-St. Paul (MSP) to remain an important operating center.

Together, Allegiant and Sun Country will serve approximately 22 million annual customers across nearly 175 cities, with more than 650 routes and a combined fleet of 195 aircraft.

A complementary merger

The combination of Allegiant and Sun Country unites two profitable airlines with complementary route networks, diversified revenue streams, and strong balance sheets, positioning the merged company for long-term growth and value creation.

Allegiant said it expects the deal to generate approximately $140 million in annual synergies within three years of the transaction’s closing and integration. The anticipated savings and revenue benefits are expected to come from expanded travel options across the combined network, greater operational scale, fleet optimization, and procurement efficiencies.

The company also said the transaction is expected to increase earnings per share in the first full year after closing, while preserving balance sheet flexibility.

Complementing and further diversifying Allegiant’s existing charter business and revenue base will be Sun Country's cargo operations for Amazon Prime Air and charter contracts with casinos, Major League Soccer, collegiate sports teams, and the Department of Defense. The combined company has 195 aircraft at closing, 30 aircraft on order, and an additional 80 options Thus, the combined company will have greater flexibility to optimize aircraft deployment, improve utilization, and support long-term growth through economic cycles.

Senior officers

Greg Anderson will serve as Chief Executive Officer of the combined company. Anderson became Allegiant Travel’s CEO in September 2024.  Robert Neal, who has been with Allegiant for more than two decades, will serve as President and Chief Financial Officer. Jude Bricker, formerly Sun Country’s CEO; Jennifer Vogel; and Thomas C. Kennedy were appointed as members of Allegiant's Board of Directors.