Air TransportAllegiant to acquire Sun Country in $1.5bn cash and stock deal
Allegiant and Sun Country Airlines announced a definitive merger agreement on January 11, that will see Allegiant acquire Sun Country in a cash and stock transaction valued at $18.89 per Sun Country share.
Under the terms, Sun Country shareholders will receive 0.1557 Allegiant shares and $4.10 in cash for each Sun Country share, representing a 19.8% premium over Sun Country’s January 9 closing price of $15.77.
The transaction values Sun Country at approximately $1.5 billion, including $400 million in Sun Country’s net debt. Upon closing, Allegiant shareholders will own about 67% of the combined entity while Sun Country shareholders will own 33%.
The combined airline will operate over 650 routes, integrating Allegiant’s 551 routes with Sun Country’s 105. The new carrier will focus on leisure travel, with planned expansion into 18 international destinations from Allegiant’s small and medium-sized city markets.
Allegiant CEO Gregory C. Anderson stated, “Together, our complementary networks will expand our reach to more vacation destinations including international locations.”
“Today marks an exciting next step in our history as we join Allegiant to create one of the leading leisure travel companies in the U.S,” said Sun Country President and CEO Jude Bricker.
Combined fleet of 185 aircraft
The combined fleet includes Allegiant Air’s 28 Airbus A319s, 83 Airbus A320s, and 16 Boeing 737 MAX 8s, along with Sun Air’s 65 Boeing 737-800s and 3 Boeing 737-900ERs, bringing together a mix of Airbus and Boeing narrowbody aircraft types.
The new carrier’s expanded fleet will provide flexibility for domestic and international growth. Allegiant’s Airbus fleet is configured for high-density leisure operations, and Sun Country’s 737s are used for both scheduled operations and charter services.
Recent airline consolidation efforts continue to reshape the U.S. aviation landscape. Alaska Airlines completed its acquisition of Hawaiian Airlines in September 2024. Republic Airways and Mesa Air announced a merger plan on April 7, 2025, with the transaction expected to close in the second half of the year.
JetBlue’s attempt to acquire Spirit Airlines, announced in July 2022, was blocked by a federal judge in January 2024, reinforcing antitrust pressure on large airline deals.
US leisure travel demand has driven M&A activity among carriers focused on value-oriented vacation markets. The Allegiant-Sun Country deal follows a pattern of network expansion through mergers, aiming to leverage complementary strengths in underserved city pairs.
Allegiant and Sun Country have both grown by targeting non-traditional routes and secondary airports, serving cost-sensitive leisure travelers. Allegiant’s model relies on low-frequency, high-utilization operations, while Sun Country has developed a hybrid approach with scheduled flights and charter contracts.
The companies expect to close the transaction subject to regulatory review and customary closing conditions. The process is anticipated to conclude in the second half of 2026, with integration planning underway to align fleets, networks, and commercial operations.
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