Low-cost carrier Allegiant Air announced on Sunday that it will acquire Sun Country Airlines in a deal valued at approximately $1.5 billion, including debt. The acquisition is set to significantly expand the combined airline’s network across the United States and select international routes.
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Under the terms of the agreement, Sun Country shareholders will receive 0.1557 Allegiant shares plus $4.10 in cash for each share. The deal values Sun Country stock at $18.89 per share, representing a 19.8% premium over its Friday closing price of $15.77. Allegiant and Sun Country shareholders will own roughly 67% and 33% of the merged company, respectively.
The future of low-fare travel just took an exciting step forward: we’re combining with @Allegiant to create a leading, more competitive, leisure-focused U.S. airline.
Together, we will provide our combined 22 million annual passengers with expanded service to more popular… pic.twitter.com/ti9mSzOuMX
— Sun Country Airlines (@SunCountryAir) January 11, 2026
The combined airline will operate a fleet of about 195 aircraft, with additional orders and options planned for future growth. Allegiant CEO Gregory Anderson will serve as chief executive officer, while Sun Country CEO Jude Bricker will join the board. Robert Neal will take on the role of president and chief financial officer of the new entity.
The merger is projected to generate $140 million in annual synergies by its third year and is expected to be accretive to earnings per share from the first year of operation. The headquarters for the combined airline will be located in Las Vegas.
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Analysts say the acquisition will allow Allegiant to broaden its route offerings, enhance scheduling flexibility, and better compete with other low-cost carriers in the U.S. and regional international markets. The deal is expected to close in the second half of 2026, pending regulatory approvals and shareholder consent.