In a move that reshapes the budget travel landscape, Allegiant Air has announced plans to acquire Sun Country Airlines in a blockbuster $1.5 billion merger. The deal, revealed on January 11, 2026, brings together two of America's leading leisure-focused carriers, promising to create a more competitive airline with expanded route networks and enhanced rewards for travelers. With combined operations serving 22 million passengers annually across nearly 175 cities, this merger represents one of the most significant consolidations in the U.S. airline industry this decade.
The $1.5 Billion Deal: How Allegiant and Sun Country Are Combining
Under the definitive merger agreement, Allegiant will acquire Sun Country in a cash-and-stock transaction valued at approximately $1.5 billion, including $400 million of Sun Country's net debt. Sun Country shareholders will receive 0.1557 shares of Allegiant common stock plus $4.10 in cash for each share they own, representing a premium of 19.8% over Sun Country's closing price on January 9, 2026. Upon completion, Allegiant shareholders will own approximately 67% of the combined company, with Sun Country shareholders holding the remaining 33%.
The combined airline will operate approximately 195 aircraft with 30 more on order and 80 additional options, creating one of the largest fleets among leisure-focused carriers. Allegiant CEO Gregory C. Anderson emphasized the strategic fit, stating, "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." Sun Country President and CEO Jude Bricker echoed the sentiment, highlighting their "deep commitment to delivering affordable travel experiences without compromising on quality."
Timeline: From Announcement to Expected Closing in Late 2026
The merger announcement on January 11, 2026, kicks off a regulatory approval process expected to take approximately 18 months. Both companies anticipate closing the transaction in the second half of 2026, pending receipt of U.S. federal antitrust clearance and other required regulatory approvals, as well as approval from shareholders of both airlines. The timeline follows a pattern of airline industry consolidation, coming roughly 16 months after Alaska Airlines completed its acquisition of Hawaiian Airlines.
Investor reaction has been positive, with Sun Country shares rising significantly following the premium announcement. The companies have scheduled a joint investor conference call to discuss the transaction details and field questions from analysts and shareholders. Throughout the approval process, both Allegiant and Sun Country will continue operating independently, with no immediate changes to flight schedules, ticketing, or customer experience.
Why This Merger Changes the Game for Leisure Travelers
The Allegiant-Sun Country combination creates a powerful network synergy that benefits travelers in several key ways. Currently, Allegiant operates exclusively domestic routes while Sun Country serves international destinations including Mexico, Central America, Canada, and the Caribbean. Together, they'll offer more than 650 routes connecting small and mid-sized cities to popular vacation spots across North America.
Perhaps most significantly for frequent flyers, the airlines will combine their loyalty programs—Allegiant's Always Rewards and Sun Country Rewards—into a single enhanced program with expanded earning and redemption options. The merged program will serve over 23 million members, offering greater flexibility and richer benefits. Additionally, travelers can expect improved schedule reliability and more flight options as the combined airline optimizes its route network and fleet utilization.
The merger also addresses a critical gap in Allegiant's network by providing access to Sun Country's Minneapolis-St. Paul International Airport hub, which serves as a key gateway to the Midwest and beyond. This strategic combination allows the new airline to better match capacity with seasonal demand patterns while maintaining year-round operations through charter and cargo contracts.
Current Status: What Travelers Need to Know Now
For the immediate future, nothing changes for customers of either airline. Both Allegiant and Sun Country will continue operating under their current brands, with separate websites, booking systems, and flight operations until the Federal Aviation Administration grants a single operating certificate. "There will be no immediate impact to ticketing, flight schedules, and travel experience, or the Sun Country brand, and customers can continue to book and fly with Allegiant and with Sun Country as they do today," the companies confirmed in their joint announcement.
This means travelers with existing bookings on either airline can proceed with their plans as scheduled, and those considering future travel can book with confidence knowing their plans won't be disrupted by the merger announcement. The airlines have committed to transparent communication throughout the integration process, ensuring customers are informed well in advance of any changes that might affect their travel experience.
The Road Ahead: Integration and Future Growth Plans
Following regulatory approval, Allegiant plans to achieve $140 million in annual synergies within three years through combined operations, fleet optimization, and procurement efficiencies. The merged company will maintain dual headquarters in Las Vegas and Minneapolis-St. Paul, preserving Sun Country's significant presence in Minnesota while leveraging Allegiant's operational base in Nevada.
Leadership transitions have already been outlined, with Allegiant CEO Gregory C. Anderson serving as Chief Executive Officer of the combined company and Sun Country's Jude Bricker joining the Allegiant board of directors along with two additional Sun Country board members. The integration team will work closely with employee unions representing pilots, flight attendants, mechanics, and ground staff to ensure a smooth transition for the combined workforce of approximately 8,000 employees.
Looking further ahead, the combined airline plans to expand its international footprint, particularly in Mexican and Caribbean destinations that have shown strong growth in leisure travel demand. With greater scale and financial resources, the new Allegiant will be better positioned to compete with larger carriers while maintaining the low-cost structure that has made both airlines popular choices for budget-conscious travelers.
Key Takeaways from the Allegiant-Sun Country Merger
The Allegiant-Sun Country merger represents a strategic consolidation in the competitive leisure travel market, creating a stronger competitor with enhanced route networks and customer benefits. Travelers can look forward to more destination options, improved loyalty rewards, and continued affordable fares as the combined airline leverages its increased scale. While regulatory approvals will take time, the eventual integration promises to deliver a more robust travel option for millions of passengers who prioritize value and convenience in their vacation planning.
