Allegiant to buy Sun Country Airlines in $1.5 billion deal

Allegiant Travel Co. is buying Sun Country Airlines in a $1.5 billion cash-and-stock transaction that the carriers announced Jan. 11, a deal that would fold the Minneapolis-based leisure airline into Allegiant’s Las Vegas-centered network while preserving both brands until closing.

Under the terms, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock plus $4.10 in cash for each Sun Country share, implying a per-share value of $18.89. That price represents a 19.8 percent premium to Sun Country’s Jan. 9 closing price of $15.77 and an 18.8 percent premium to the 30-day volume-weighted average price, the companies said. The $1.5 billion valuation includes roughly $400 million of net debt. Allegiant trades on Nasdaq as ALGT and Sun Country as SNCY.

The transaction has unanimous board approval at both carriers but remains subject to U.S. federal antitrust and other regulatory approvals, as well as shareholder consent and customary closing conditions. The companies said they expect the deal to close in the second half of 2026, contingent on regulatory clearance. Upon closing, Allegiant shareholders are expected to own approximately 67 percent of the combined company and Sun Country shareholders about 33 percent.

The merged airline will operate under the Allegiant brand and be headquartered in Las Vegas. Combined, the carriers said the new Allegiant will field about 195 aircraft, serve roughly 175 cities on more than 650 routes and include 18 international destinations across Mexico, Canada, the Caribbean and Central America. Management framed the tie-up as a scale play to deepen leisure-focused service from small- and medium-sized U.S. communities to popular vacation and international destinations while adding Sun Country’s growing cargo business.

Gregory C. Anderson, Allegiant’s chief executive officer, will lead the combined company as chief executive officer; Robert Neal will serve as president and chief financial officer. Sun Country President and CEO Jude Bricker will join the combined company’s board. Anderson said the deal will expand reach to more vacation destinations including internationally. Bricker highlighted Sun Country’s 43-year history, its brand and the opportunity for Sun Country shareholders to benefit from future growth as part of the combined company.

Financially, management projects the transaction will be accretive to earnings per share in the first year after closing and expects about $140 million in annual run-rate synergies by the third year following closing. Together the two airlines carry roughly 22 million passengers annually, a figure management cited in filings as evidence of the combined carrier’s scale in the leisure segment. Sun Country’s diversified mix, including cargo and charter services for customers such as Amazon, was noted as a strategic complement to Allegiant’s point-to-point leisure model.

The move adds to consolidation in the U.S. low-cost and leisure airline sector, raising regulatory scrutiny as authorities weigh potential impacts on competition for routes serving smaller communities. For customers, the companies said there will be no immediate operational changes; both carriers will continue to operate separately until the deal closes. An investor conference call and webcast is scheduled for Jan. 12 to discuss the transaction and provide additional details through the companies’ investor relations channels.