In a move set to reshape the U.S. leisure travel landscape, Allegiant Travel Company announced on January 11, 2026, that it will acquire Sun Country Airlines in a deal valued at approximately $1.5 billion, including $400 million of Sun Country's net debt. The merger, structured as a cash-and-stock transaction, will form one of the largest leisure-focused airlines in the United States, promising expanded service, new international destinations, and enhanced value for both customers and shareholders.
Under the terms of the agreement, Sun Country shareholders will receive $4.10 in cash and 0.1557 shares of Allegiant stock for each Sun Country share they own. This values Sun Country at $18.89 per share—a nearly 20% premium over its closing price of $15.77 on January 9, 2026, according to Allegiant's press release. Once the deal closes, Allegiant shareholders will own approximately 67% of the combined company, with Sun Country shareholders holding the remaining 33%.
"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," Allegiant CEO Gregory C. Anderson said, as reported by KLAS. Anderson added, "We have long admired Sun Country for their well-run, flexible, and diversified business model that optimizes for year-round utilization and strong margins."
Sun Country President and CEO Jude Bricker echoed the enthusiasm, stating, "We are two customer-centric organizations deeply committed to delivering affordable travel without compromising on quality. This transaction delivers value to shareholders and supports our long-term growth." Bricker will join Allegiant's board of directors upon closing, while Anderson will become CEO of the combined airline. The new company will remain headquartered in Las Vegas but will also maintain a significant presence in Minneapolis-St. Paul, honoring Sun Country’s roots and market strength.
The merger brings together two profitable, low-cost carriers with complementary route networks. Allegiant has made a name for itself by connecting small and mid-sized cities to popular vacation spots, while Sun Country operates out of larger metropolitan hubs and boasts a diversified business model, including scheduled flights, charters, and cargo services—most notably for Amazon. According to CNBC, Anderson described Amazon’s cargo partnership as “crucial to the deal,” with both airlines’ CEOs consulting with Amazon prior to the merger announcement.
The combined airline is expected to operate more than 650 routes, serving nearly 175 cities across the U.S. and nearby countries. Customers will gain access to 18 international destinations, including Mexico, Central America, Canada, and the Caribbean, expanding the airlines’ reach far beyond their current footprints. In terms of fleet, the new entity will operate approximately 195 aircraft, with plans to leverage both Airbus and Boeing models for greater operational flexibility and fuel efficiency.
For travelers, the benefits will be tangible. The merger will integrate the airlines’ loyalty programs, combining more than 22 million annual passengers into a single, expanded rewards platform. The companies promise richer benefits, more earning options, and greater flexibility for frequent flyers. Additionally, the complementary networks mean more nonstop flights from underserved markets to popular vacation destinations, as well as enhanced scheduling agility and reliability—features the airlines say will improve on-time performance and better match seasonal demand.
Employees of both airlines can also expect new opportunities. The larger network and fleet will create more roles, advancement pathways, and cross-training possibilities. Both companies emphasize their shared culture of service, safety, and hospitality, promising to support employees through the transition and maintain existing collective bargaining agreements. According to the joint press release, “Allegiant and Sun Country will work closely with employees and their unions—including pilots, flight attendants, mechanics, ground staff, and dispatchers—to ensure a smooth and transparent integration process.”
From a financial perspective, the merger is projected to generate $140 million in annual synergies by the third year post-closing, driven by network efficiencies, fleet optimization, and procurement savings. The deal is expected to be accretive to earnings per share within the first year after closing. The combined company will also benefit from a diversified revenue stream, including high-margin ancillary sales, long-term charter contracts, and cargo partnerships, which executives say will provide resilience through economic cycles.
Despite the optimism, the deal faces significant regulatory scrutiny. Airline mergers in the U.S. have become fraught with challenges, particularly under recent administrations. The Biden administration, for example, blocked JetBlue’s proposed acquisition of Spirit Airlines in 2024 on antitrust grounds, citing concerns over reduced competition and higher fares. That decision followed years of turbulence for low-cost carriers, with Spirit filing for bankruptcy twice since late 2024 and other budget airlines struggling amid rising costs and fierce competition from giants like Delta, American, United, and Southwest—who together control about 70% of the domestic market, according to federal data cited by CNBC.
However, Allegiant and Sun Country executives are confident that their merger stands a better chance of approval due to minimal overlap in their route networks and their focus on leisure travelers rather than business-heavy routes. In a nod to transparency and investor confidence, both companies scheduled a special conference call for January 12, 2026, to discuss the merger in detail and answer stakeholder questions.
Until the transaction closes—which is expected in the second half of 2026, pending federal antitrust review, regulatory approvals, and shareholder votes—both airlines will continue to operate independently. There will be no immediate changes to ticketing, flight schedules, or the customer experience, and the Sun Country brand will remain intact until the Federal Aviation Administration grants a single operating certificate for the combined airline.
The merger is being closely watched by industry analysts, labor unions, and competitors alike. Some see it as a logical step for two smaller carriers seeking scale and stability in a volatile market, while others caution that integrating technology, workforces, and cultures can be a daunting task. Still, the potential rewards are significant. As Anderson put it, “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.”
As the U.S. airline industry continues to evolve, the Allegiant-Sun Country merger stands out as a bold bet on leisure travel, network synergy, and the enduring appeal of affordable vacations. The coming months will reveal whether regulators, shareholders, and the flying public agree.
