Allegiant and Sun Country Announce “Sunshine” Merger to Create Larger U.S. Leisure Airline

Allegiant Travel Company and Sun Country Airlines have reached a definitive agreement to merge, combining two U.S. low-cost, leisure-focused carriers in a transaction valued at approximately $1.5 billion pending regulatory and shareholder approvals.

The proposed combination creates one of the largest leisure-oriented carriers in the U.S. market, with management forecasting expanded access to popular vacation destinations and an enlarged route network across domestic and selected international markets. The boards of directors of both airlines have unanimously approved the transaction, which is expected to close in the second half of 2026, subject to antitrust clearance from U.S. authorities and other customary closing conditions. :contentReference[oaicite:0]{index=0}

Under the terms of the deal, Sun Country shareholders will receive a mix of cash and Allegiant stock — roughly $4.10 per share plus 0.1557 Allegiant shares — representing nearly a 20 percent premium over Sun Country’s recent trading value. Upon closing, Allegiant investors will own about two-thirds of the combined entity while Sun Country shareholders retain nearly one-third of the capital structure. :contentReference[oaicite:1]{index=1}

Leadership is expected to be anchored by Allegiant’s CEO Gregory C. Anderson, with Sun Country’s Jude Bricker joining the board of directors, helping guide operational integration. The merged airline will be headquartered in Las Vegas but will maintain a significant operational presence in Minneapolis–St. Paul, where Sun Country has long been based. :contentReference[oaicite:2]{index=2}

Operationally, the combined airline will bring together complementary networks that feature minimal overlap, a factor analysts cite as smoothing the regulatory review process. Allegiant’s network of non-stop leisure services from smaller U.S. origins will link with Sun Country’s broader city network and seasonal services to sun and leisure markets, potentially enhancing frequency and connectivity for passengers at both carriers’ hubs. :contentReference[oaicite:3]{index=3}

The merged carrier is anticipated to operate roughly 195 aircraft across more than 650 routes, serving nearly 175 cities in the U.S., Mexico, Canada, Central America and the Caribbean. Fleet optimisation will feature both Allegiant’s Boeing 737 MAX fleet and Sun Country’s Boeing 737-800 aircraft, a mix expected to support both year-round and seasonal leisure demand. :contentReference[oaicite:4]{index=4}

A notable component of the strategic rationale is the continuation and integration of Sun Country’s diversified revenue streams, which include contracted year-round cargo operations — notably outsourced freighter services for Amazon Prime Air — and charter services alongside scheduled passenger segments. Allegiant has indicated that cargo and charter revenue is expected to be a stable contributor to the combined company’s financial performance. :contentReference[oaicite:5]{index=5}

For travellers, there will be no immediate changes to ticketing, schedules or loyalty programmes before approvals and regulatory conditions are satisfied, and both carriers will continue to operate independently until a single FAA operating certificate is obtained. Once integrated, network planners suggest the merged airline could offer improved route optionality, expanded leisure connectivity and potential frequency enhancements as the combined network is rationalised and optimised. :contentReference[oaicite:6]{index=6}

The deal reflects broader consolidation pressure within U.S. aviation, where smaller carriers seek scale and competitive advantage against major network airlines and in the wake of other industry consolidations. Regulators and market participants will monitor the transaction for competitive impacts on U.S. leisure and underserved markets as the transaction progresses through the regulatory review process. :contentReference[oaicite:7]{index=7}