Allegiant Air said Wednesday that it has completed its purchase of Sun Country Airlines, finalizing the deal that combines two low-cost carriers at a time when budget airlines face growing cost pressures. The announcement came as travelers and the industry grapple with higher jet fuel prices, a shift that has already shown up in higher fares and fees, according to the airline.

Allegiant said the transaction closed after receiving required regulatory and shareholder approvals. When the deal was first announced in January, Allegiant said it was valued at about $1.5 billion, including debt.

Gregory Anderson, Allegiant’s chief executive, said in a statement that the completion “marks a defining moment” for the company. Anderson said the companies officially join forces and described the combined airline as positioned to provide broader access to affordable travel.

The merger follows a turbulent period for low-cost carriers, with Spirit Airlines shutting down after 34 years on May 2. Allegiant and Sun Country said the shutdown unfolded as fuel costs rose sharply and as Spirit had years of financial strain, including heavy debt, repeated restructuring efforts and ongoing cash-flow problems .

Against that backdrop, Allegiant and Sun Country said their tie-up gives them more ways to generate revenue beyond passenger flights. They said Sun Country brings cargo flying for Amazon, along with charter trips for sports teams, casinos and the U.S. Department of Defense.

Allegiant said the expanded network is expected to give travelers more options, especially in smaller and mid-sized markets. The company said the combined operation would include about 195 aircraft serving nearly 175 cities and more than 650 routes.

For customers, Allegiant said they should not expect immediate changes. It said both airlines will continue to operate separately for now, and that customers can keep booking, checking in and managing trips as they do today.

Looking forward, Allegiant said bringing the two airlines together will take time. Over the long term, the combined company is expected to operate under the Allegiant name and remain headquartered in Las Vegas, while keeping Minneapolis–St. Paul, where Sun Country is based, as an important hub.

The deal completes a consolidation effort in the U.S. budget-airline segment as carriers work to manage fuel volatility and maintain capacity.