The acquisition of Sun Country Airlines by Allegiant Air has now officially been completed as of yesterday, Wednesday, May 13, 2026, with the integration of both airlines now currently under way.
Allegiant Air Acquisition of Sun Country Airlines Now Complete
The transaction of the deal — which is valued at approximately $1.5 billion — was expected to be completed in the second half of 2026; but the transaction was finalized earlier than expected following the satisfaction of customary closing conditions, which included the receipt of required regulatory approvals and approval by the shareholders of each of Allegiant Air and Sun Country Airlines.
The combined entity of the two ultra-low-cost leisure airlines will serve 22 million customers annually with a combined fleet of 195 airplanes in almost 175 cities with greater than 650 flight routes across the United States, Mexico, Central America, Canada, and the Caribbean region.
According to the latest press release from Allegiant Airlines on Wednesday, May 13, 2026:
Financially, the combination of Allegiant and Sun Country brings together two profitable airlines with complementary networks, diversified revenue streams and strong balance sheets, creating a platform with meaningful long-term value creation potential. Allegiant expects to realize approximately $140 million in annual synergies within three years following closing and integration, driven by expanded customer choice across the combined network, scale efficiencies, fleet optimization, and procurement benefits. The transaction is expected to be accretive to earnings per share in the first full year post-closing, while maintaining balance sheet flexibility.
Sun Country’s cargo operations for Amazon Prime Air and charter contracts with casinos, Major League Soccer, collegiate sports teams, and the Department of Defense, complement Allegiant’s existing charter business and further diversify the combined company’s revenue base. With 195 aircraft at closing, 30 aircraft on order and an additional 80 options, the combined company will have greater flexibility to optimize aircraft deployment, improve utilization, and support long-term growth through economic cycles.
What customers can expect from the combined airline includes more opportunities to save on more enhanced travel options with:
- More choice of nonstop flights across the networks of both airlines.
- Access to more modern aircraft — including Allegiant’s fleet of next generation Boeing 737 airplanes.
- Increased service from Minneapolis-Saint Paul International Airport to small-sized cities and mid-sized cities where Allegiant has a presence.
- A strengthened, high-value customer loyalty program, which will provide more ways to save, earn, and redeem points as the membership programs of both airlines will eventually be combined into one membership program.
- Continued investment in the communities that are served, which will support jobs and local economies.
- The continuation of offering low fares, as the combined airline expects to keep fares competitive while expanding customer choice.
Although the combined entity will be headquartered in Las Vegas — which is where the headquarters of Allegiant Air is currently located — the company will maintain a significant presence in Minneapolis, which is the current headquarters of Sun Country Airlines.
Additional information pertaining to the acquisition of Sun Country Airlines by Allegiant Air — including frequently asked questions — is available at this official Internet web site that is dedicated to the new airline entity.
Allegiant Air was the most profitable airline in the United States in 2013, according to this article here at The Gate With Brian Cohen that was published on Friday, June 21, 2013.
Final Boarding Call
Although the two airlines are ultra-low-cost carriers, their business models are somewhat different: Allegiant Air serves airports in smaller cities with direct flights and is not as dependent on hub airports; while Sun Country Airlines operates most of its flights out of Minneapolis-Saint Paul International Airport…
…but most of the flight routes of both airlines do not overlap or are not duplicitous; so that should favor the acquisition to be approved by regulators.
Nothing changes at the moment for customers and passengers, with business as usual until further notice.
I have never flown as a passenger on either airline — nor do I necessarily believe that this merger of the two airlines is beneficial to consumers — but the acquisition should create a stronger entity that can take on rival ultra-low-cost airlines such as Frontier Airlines…
…and the ceasing of operations of Spirit Airlines on Saturday, May 2, 2026 will likely increase the possibility of this new entity being successful as it moves forward into the future with less competition…
All photographs ©2019 and ©2023 by Brian Cohen.
