LAS VEGAS (AP) — Allegiant Air said it will acquire Sun Country Airlines in a cash-and-stock deal valued at about $1.5 billion, including debt, combining two low-cost U.S. carriers focused on leisure travel.
The companies said their route networks complement each other and that the larger airline would increase affordable travel options for passengers. They said the merged airline would serve about 175 cities with more than 650 routes and a fleet of roughly 195 aircraft.
Allegiant CEO Gregory Anderson said in a statement that “Allegiant and Sun Country have both shown that our leisure-focused, flexible capacity models are strong, thriving and consistently profitable, which gives me great confidence in the potential benefits of combining our organizations.”
The deal still needs approval from regulators and Sun Country shareholders, and the companies said it is expected to close in the second half of 2026. They added that travelers should not expect immediate changes and can continue booking and flying with either carrier as they normally do.
The companies said ticketing, flight schedules, the overall travel experience and the Sun Country brand will remain the same for now.
Under the proposed combination, the merged airline will operate under the Allegiant name and be headquartered in Las Vegas. The companies said it will also maintain a significant presence in the Minneapolis–St. Paul area, where Sun Country is based, while continuing to operate Sun Country’s charter and cargo businesses.
Anderson will lead the combined airline as CEO, the companies said. Sun Country CEO Jude Bricker will join the company’s board of directors.
Bricker said he has “had the privilege of working at both companies” and that, based on those experiences, “this is a tremendous fit across the board.” He previously served as Allegiant’s chief operating officer in 2016 and 2017.