Allegiant to buy Sun Country in $1.5 billion airline deal

Allegiant Air announced Jan. 12 that it has reached an agreement to acquire Sun Country Airlines in a deal valued at roughly $1.5 billion. The transaction, if approved by regulators and shareholders, could expand destination choices and nonstop options for travelers flying out of Orlando Sanford International Airport, a key gateway for Seminole County.

Allegiant said the acquisition would create one of the largest leisure-focused airlines in the country. Industry analysts noted limited route overlap between the two carriers, a factor that could ease regulatory review and make it easier to add new services from airports such as Sanford. Sun Country operates international routes to Mexico, Central America, Canada and the Caribbean, network additions that could translate into direct flights for local travelers who now route through larger hubs.

Federal officials are expected to scrutinize the proposed merger for its competitive implications, including whether the consolidation could reduce competition or push up fares. For now, both airlines will continue to operate separately and Allegiant and Sun Country said there will be no immediate changes to flights, tickets or schedules. Any new routes or nonstop options serving undersupplied markets would come only after federal approval and shareholder consent. Executives expect the deal could close in the second half of next year if regulators clear the merger.

Local leaders and travelers greeted the announcement with cautious optimism. Orlando Sanford International Airport officials said in a statement that, while details remain limited, they view the news as a positive reflection of the carriers’ strength and leadership. Traveler Jeff Minkwic, who uses Sanford for local trips, said expanded service from the airport could ease congestion at larger hubs and help the local economy: "You get into Orlando International and whatnot, or even around Tampa... and those can be quite mind boggling at times. So, it’s nice to see some of that local economy grabbing a little bit of something, a little of their share of it."

For Seminole County, potential benefits include more direct travel options for residents, increased visitor traffic that could boost hotel, dining and retail revenues, and incremental airport-related employment and fees. The timing and scale of those effects depend on route planning decisions made after regulatory clearance. Observers also caution that consolidation can change competitive dynamics, so local travelers should watch fare trends as the process moves forward.

Next steps are regulatory review and shareholder votes; until those are complete, schedules will remain unchanged. Residents who fly from Sanford can expect potential route announcements later in 2026 if the merger wins approval, while regulators will balance any expansion benefits against competition concerns.