Allegiant Air and Sun Country Airlines have entered into a merger agreement to acquire Sun Country airlines for $1.5 billion. The combination will create a larger airline allowing the two relatively smaller leisure operators to further expand and gain market share. As part of the acquisition, Allegiant will acquire Sun Country in a cash and stock transaction estimated at a value of $18.89 per Sun Country share. Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country share owned, representing a premium of 19.8% over Sun Country’s closing share price of $15.77 on January 9, 2026.
Who Is Sun Country Airlines
Sun Country Airlines was founded in 1982 by former Braniff International Airways pilots and flight attendants initially operating as a vacation charter airline. In the late 1990s Sun Country began operating scheduled service primarily out of Minneapolis flying Boeing 737 jets. In the years to follow, ownership was passed on numerous times. Then in 2017 the airline began transitioning to an Ultra Low Cost Carrier (ULCC) as the airline becomes publicly traded. Along with this transition Sun Country continued operating a hybrid charter / passenger model also operating over a dozen cargo aircraft for Amazon. At the time of writing Sun Country flies to 100 airports across the United States, Mexico, Central America, Canada, and the Caribbean. Check out our review of Sun Country here.
Who Is Allegiant Air
Allegiant Air was founded in 1997 with their first flight from Fresno to Las Vegas commencing in 1999. Only a year later did the airline enter into bankruptcy. During their restructuring process Allegiant restructured into an Ultra Low Cost Carrier wile taking delivery of secondhand McDonald Douglas aircraft. As they further grew, Allegiant began expanding outside of their Las Vegas base opening bases throughout Florida serving secondary cities with little to no competition. As the airline grew they began taking deliveries of Airbus A319 and A320 aircraft to replace the now aging McDonald Douglas aircraft. To this very day, Allegiant continues serving small places like Newburgh New York to vacation destinations like Clearwater Florida. At the time of Writing Allegiant operates to 541 routes throughout the United States. Check out our review of Allegiant here.
What Does A Combined Airline Look Like?
According to Allegiant, each airline will initially operate separately with the two brands initially remaining intact. Allegiant will operate as the publicly held parent company and will operate corporate headquarters in Las Vegas as they did before. Eventually the two airlines will form a single operating certificate pending FAA approval. After the estimated deal closure in second half of 2026, the two airlines are projected to carry a combined 22 million passengers across 650 routes with a combined 195 aircraft doing the leg work. Gregory C. Anderson, Allegiant CEO, said, “This combination is an exciting next chapter in Allegiant and Sun Country’s shared mission in providing affordable, reliable, and convenient service from underserved communities to premier leisure destinations. We have long admired Sun Country for their well-run, flexible, and diversified business model that optimizes for year-round utilization and strong margins. Together, our complementary networks will expand our reach to more vacation destinations including international locations. With our combined strengths– including operational excellence, consistent profitability, strong balance sheets, and fleet ownership, we will create an even more resilient and agile airline that delivers greater value to travelers, partners, Team Members, shareholders, and the communities we serve.”
Sun Country and Allegiant have created a dedicated website; Soaringforleisure.com where they will be sharing progress updates on this rather out of the Blue acquisition.