Allegiant to Acquire Sun Country in US$1.5 Billion Leisure Airline Deal

LAS VEGAS — Allegiant Air (G4) has agreed to acquire Sun Country Airlines (SY) in a cash-and-stock transaction valued at approximately $1.5 billion, marking one of the most significant consolidations in the U.S. leisure airline sector in recent years.

Under the terms of the agreement, Sun Country shareholders will receive a combination of cash and Allegiant common stock, valuing the Minneapolis-based carrier at a near-20% premium to its recent trading price. The transaction is expected to close in the second half of 2026, subject to regulatory and shareholder approvals.

Strategic Context: A Leisure-Focused Combination

The deal brings together two airlines with complementary leisure-driven business models. Allegiant, known for connecting small and mid-sized U.S. cities to vacation destinations with a high ancillary-revenue focus, will gain access to Sun Country’s stronger presence in larger metropolitan markets, particularly Minneapolis–St. Paul (MSP).

Sun Country adds further strategic value through its diversified operation, which includes scheduled passenger services, charter flying, and a growing cargo business. Allegiant executives said the combination will expand network reach across popular U.S. leisure markets while preserving the low-cost structures that define both brands.

Network and Fleet Implications

Once combined, the airline group would operate a fleet of nearly 200 aircraft, primarily Airbus A320-family jets, and serve more than 650 routes across approximately 175 cities in the United States. Allegiant CEO Gregory C. Anderson will lead the combined company, while Sun Country CEO Jude Bricker is expected to join the board.

Headquarters will remain in Las Vegas, Allegiant’s current base, while Sun Country will continue to maintain a significant operational footprint in Minneapolis.

Competitive Landscape

The acquisition underscores ongoing consolidation pressures in the U.S. low-cost and leisure segment, as carriers seek scale, route diversity, and operational resilience amid fluctuating demand and rising costs. Analysts note that the combined airline could strengthen competition in leisure-heavy markets against larger network carriers while retaining flexibility in capacity deployment.

Both airlines emphasized that customers should not expect immediate changes to schedules, bookings, or loyalty programs as integration planning begins.

If approved, the transaction will reshape the competitive dynamics of the U.S. leisure travel market, creating a larger, more diversified airline focused squarely on affordable vacation travel.

Key Details

• Complementary footprint provides more destinations, more often: 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.

• Expanded international service: 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.

• Greater scheduling agility, improved reliability, and dynamic route planning enhance on-time performance: Integrated scheduling and fleet management will enhance on-time performance. The combined airline's flexible capacity will match demand during peak leisure travel seasons and days of the week, while leveraging year-round charter and cargo operations to maximize profitability. By rapidly adjusting and expanding passenger and charter routes to support emerging vacation trends and expertly matching demand trends, the combined company can better service underserved markets and meet charter and cargo customer demands.

• Enhanced loyalty rewards program: Expanded frequent flyer and membership benefits, combining the best of both airlines' programs. Adding Sun Country's more than 2 million members to Allegiant's 21 million member base further enhances the relevance of the combined program, driving greater customer rewards.