Allegiant to acquire Sun Country: what travelers and investors should know

TL;DR:

Allegiant will buy Sun Country in a $1.5 billion cash-and-stock deal.
Shareholders of Sun Country get $4.10 cash plus 0.1557 Allegiant shares per SNCY share.
The combined airline targets 650 routes and a leisure focus, with Las Vegas HQ and a large MSP presence.
Closing is expected in the second half of 2026, pending approvals.
Management projects $140 million in annual synergies by year three after close.

On 12 January 2026, Allegiant said it will acquire Sun Country Airlines in a cash-and-stock deal valued at about $1.5 billion, including debt. The companies aim to build a larger, leisure-focused carrier with more than 650 routes across the United States and nearby international markets.

Under the agreement, each Sun Country share will convert into $4.10 in cash plus 0.1557 Allegiant shares. Based on Allegiant’s prior close, the package values Sun Country at roughly $18.89 per share, a premium of about 19 to 20 percent over Sun Country’s last closing price on 9 January 2026.

Allegiant shareholders are expected to own about 67 percent of the combined company, with Sun Country holders owning about 33 percent. Allegiant CEO Gregory Anderson will lead the merged airline. Sun Country CEO Jude Bricker, who previously spent a decade at Allegiant, will join the board. Both carriers will operate separately until they receive a single FAA operating certificate.

What happened, when, and where

Announcement date: 12 January 2026, via joint press materials and media reports.
Deal terms: $1.5 billion enterprise value, mix of cash and Allegiant stock, with Sun Country debt included in the figure.
Headquarters: The combined company will be based in Las Vegas, while keeping a significant presence at Minneapolis–St. Paul, Sun Country’s home base.
Timeline: Close targeted for the second half of 2026, subject to shareholder and U.S. regulatory approvals.

Why Allegiant and Sun Country say the deal makes sense

Executives frame the merger as a scale play in leisure flying. Allegiant brings a dense map of small and mid-sized cities. Sun Country adds larger city presence and strength at Minneapolis–St. Paul International Airport. Combined, the companies project more than 650 routes, including 551 Allegiant routes and 105 Sun Country routes, linking underserved cities to popular vacation spots in Florida, the West, and beach destinations abroad.

They also point to efficiencies in scheduling, maintenance, and fleet planning. Management guides to about $140 million in annual run-rate synergies by the third year after closing, and says the transaction should be accretive to earnings one year after close.

How it could affect travelers

More nonstop options from MSP and mid-size markets. Sun Country customers in Minneapolis–St. Paul could gain new nonstops to Allegiant’s network of smaller cities, while Allegiant flyers could see more flights into MSP and larger metros where Sun Country already operates. Early local reporting and company statements highlight an intent to expand choices rather than cut service.

Leisure focus remains. Neither airline runs a classic hub-and-spoke model like the Big Four. Expect continued emphasis on seasonal schedules, weekend peaks, and vacation-heavy routes, including Mexico and the Caribbean. The combined route map lists 18 international locations.

Aircraft and onboard experience. Both carriers fly all-Boeing 737 families. That can simplify maintenance and training over time, which may help reliability. Any changes to seat layout, buy-on-board menus, or fees will come later and require regulatory steps. For now, nothing changes day-to-day.

Fares. Low-cost carriers rely on price to fill planes. The companies say the merger will help them offer more affordable options. Whether fares drop or rise varies by route competition, fuel costs, and season. Regulators will weigh fare effects as part of their review.

What investors should watch

Premium and stock mix. The 19 to 20 percent premium reflects recent pressures on budget airlines, as costs rose and demand shifted. After the news, Sun Country shares traded higher in after-hours sessions. Keep an eye on Allegiant’s stock response as the market prices integration risk and expected synergies.

Balance sheet and leverage. Management expects the combined company’s net adjusted debt to EBITDAR to be under 3.0x at close, with flexibility to invest in the fleet. That target will matter if fuel or interest rates move.

Execution risk. Sun Country has faced operational headwinds, from pilot training costs to maintenance timing. Integration should help with scale, but knitting two schedules and workforces together is complex. Investors should track on-time performance, unit costs, and fleet utilization through 2026.

The regulatory path

This is the first big airline antitrust test of the new U.S. administration. The JetBlue–Spirit deal was blocked in 2024 under the prior administration, while Alaska’s purchase of Hawaiian was approved with conditions. Allegiant–Sun Country will draw review from the Department of Justice and the Department of Transportation. Expect questions on overlap in certain leisure markets and the effect on price competition from MSP and secondary cities. The companies guide to a second-half-2026 close.

What happens next

Shareholder votes: Both companies will seek approval from their investors in the coming months.
Regulatory review: DOJ and DOT will assess competitive effects and consumer impact through 2026.
Operating certificates: Until a single FAA certificate is issued, Allegiant and Sun Country continue as separate brands and schedules.
Network planning: Expect seasonal adds from MSP and links between Allegiant’s mid-size markets and Sun Country’s larger city stations for winter 2026 and beyond, contingent on close.

Quick checklist for travelers

Question	Short answer
Is my 2026 flight changing now?	No. Keep your booking, watch for normal schedule updates.
Will fares change soon?	Unclear. Any impact depends on route competition and costs.
New routes from MSP?	Likely over time, pending approvals and close.
One brand or two?	Two brands for now, one operating certificate after close.
When could the deal close?	Second half of 2026 if approved.

Background: the leisure model these carriers share

Allegiant focuses on nonstop, less-than-daily service from small and mid-sized cities to sun destinations like Las Vegas, Phoenix, and Florida beach airports. Sun Country grew from a charter and vacation specialist into a hybrid low-cost carrier with a strong base at Minneapolis–St. Paul and seasonal flying to Mexico and the Caribbean. Together, they pitch a network that keeps costs low by avoiding crowded hubs and by adjusting schedules to peak travel days.

The merged company plans to keep that model, while using scale to improve reliability and prices. If the combination succeeds, customers could see more nonstop choices from places that often lack them. If it stumbles, the benefit of two separate competitors in some markets would be reduced. That trade-off is central to the pending review.

Why it matters

Leisure flyers want cheap, simple trips. This deal aims to deliver more nonstop options to vacation spots from cities that big airlines often overlook. For Minneapolis–St. Paul, it could mean a wider map without connecting through hubs. For investors, the merger tests whether scale can overcome cost inflation in the low-cost segment. For regulators, it is a signal case on how to balance consumer prices with the need for strong competitors outside the Big Four.

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