Will Allegiant's $1.5 Billion Sun Country Acquisition Reshape U.S. Leisure Travel?

January 13, 2026 at 01:28 AM•3 min read

Allegiant Air will acquire Sun Country Airlines for $1.5 billion, creating a major leisure-focused U.S. airline with a fleet of nearly 200 aircraft.

Key Points

1Allegiant Air will acquire Sun Country Airlines for $1.5 billion, including debt, creating a combined entity with roughly 195 aircraft and over 650 routes.
2The merger is expected to close in the second half of 2026, pending regulatory and shareholder approval, and will maintain the Sun Country brand and operations separately until a single FAA operating certificate is issued.
3The acquisition gives Allegiant access to Sun Country's international network and its lucrative charter and cargo businesses, including a major contract with Amazon Prime Air.

Allegiant Air announced a definitive agreement to acquire Sun Country Airlines in a cash-and-stock transaction. The deal is valued at approximately $1.5 billion, including Sun Country's net debt. This move will combine two of the nation’s largest leisure-focused U.S. airline models. The new entity aims to create a more resilient and agile ultra-low-cost carrier.

Strategic Rationale and Network Expansion

Executives from both carriers stressed the complementary route networks. Allegiant specializes in connecting small and mid-sized cities to vacation spots. Sun Country primarily operates from its Minneapolis-St. Paul hub (MSP) to similar destinations. The merger will link Sun Country’s MSP base to Allegiant’s broader network.

The combined airline is expected to serve nearly 175 cities. It will offer more than 650 routes across the United States. Critically, Allegiant gains access to Sun Country’s international footprint. This includes 18 new international destinations in Mexico, the Caribbean, and Canada.

Fleet and Operational Synergies

The combined fleet will total roughly 195 aircraft, with 30 on firm order. This includes a mix of Airbus A320-family jets and Boeing 737 series aircraft. The increased scale will allow for better utilization of Allegiant's 737 MAX fleet. The companies expect to achieve $140 million in annual synergies within three years.

Sun Country's diversified business model is a key driver for the $1.5 billion acquisition. This includes its significant charter and cargo operations. Sun Country holds a long-term contract with Amazon Prime Air for narrow-body freighter service. This cargo business provides stable, counter-cyclical revenue.

Regulatory and Customer Outlook

The deal requires approval from federal antitrust regulators and Sun Country shareholders. It is expected to close in the second half of 2026. The transaction is anticipated to face regulatory scrutiny due to ongoing industry consolidation concerns. However, the complementary nature of the Allegiant Air Sun Country merger and limited route overlap may ease the process.

Until the FAA operating certificate is unified, both airlines will operate separately. Travelers should expect no immediate changes to their booking or flying experience. Ticketing, flight schedules, and the Sun Country brand will remain the same for now.

The merged airline will operate under the Allegiant name. It will be headquartered in Las Vegas, Nevada. Allegiant CEO Gregory Anderson will lead the new company. Sun Country CEO Jude Bricker will join the company’s board of directors.

This transaction is a major development in commercial aviation news and the U.S. low-cost market. For more industry insights, visit flying.flights.