Allegiant and Sun Country Airlines have announced a definitive merger agreement under which Allegiant would acquire Sun Country in a cash-and-stock transaction, bringing together two U.S. airlines focused on leisure travel. The companies disclosed the agreement on January 11th, 2026 with the transaction expected to close in the second half of 2026, subject to regulatory review and shareholder approval.
Under the terms of the agreement, Sun Country shareholders would receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country share, valuing Sun Country at an implied $18.89 per share. The transaction places an enterprise value of approximately $1.5 billion on Sun Country, inclusive of net debt. Upon closing, Allegiant shareholders are expected to hold roughly two-thirds of the combined company, with Sun Country shareholders owning the remaining portion.
Above photo of an Allegiant Air Airbus A320 and a Sun Country Boeing 737-800 with the text Allegiant Air and Sun Country Airlines Agree to Merge text by David Aughinbaugh II for FlyRadius.
The proposed combination brings together two airlines with complementary operating models within the U.S. leisure travel market. Allegiant’s business model emphasizes low-cost, point-to-point service, often connecting smaller and mid-sized communities with vacation-oriented destinations, while Sun Country operates a broader mix of scheduled and seasonal service, anchored by its base in Minneapolis-St. Paul and supplemented by charter and cargo operations. As outlined by the companies, the combined airline would serve nearly 175 cities across more than 650 routes, supported by a fleet of approximately 195 aircraft at the time of closing.
From an operational standpoint, the companies said the combined airline would continue under the Allegiant name. Each carrier would operate independently until a single FAA operating certificate is obtained, a process that governs the consolidation of flight operations, safety procedures, and regulatory oversight. During the interim period, there will be no immediate changes to schedules, ticketing, onboard experience, or branding, and customers will continue to book and fly with Allegiant and Sun Country as separate airlines.
Leadership of the combined company would remain with Allegiant. Allegiant Chief Executive Officer Gregory C. Anderson is expected to serve as CEO following the close, with Robert Neal continuing as President and Chief Financial Officer. Sun Country President and CEO Jude Bricker would join Allegiant’s board of directors and serve as an advisor during the integration process. The combined company would be headquartered in Las Vegas, while maintaining an operational presence in Minneapolis-St. Paul.
Both companies stated that the transaction has been unanimously approved by their respective boards of directors. Completion of the deal remains subject to U.S. federal antitrust review, additional regulatory approvals, and approval by shareholders of both airlines. Until those steps are completed, Allegiant and Sun Country will continue to operate independently.
Above image of Allegiant Air and Sun Country Airlines with the text Creating a Leading, More Competitive, Leisure-Focused U.S. Airline from Allegiant Air. Used under the fair use provision.
