Allegiant Air announced that the airline will acquire Sun Country Airlines in a deal that is valued at approximately $1.5 billion. 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.
Allegiant Air to Acquire Sun Country Airlines
The transaction is expected to be complete in the second half of 2026…
…but it is still subject to the completion of customary closing conditions, which include regulatory approval and approval from shareholders.
“Upon closing, Allegiant and Sun Country shareholders will own approximately 67% and 33%, respectively, of the combined company on a fully diluted basis”, according to this official press release from Allegiant Air. “The combination will create a leading leisure-focused U.S. airline, expanding service to more popular vacation destinations across the United States, as well as international destinations, and providing more people with access to affordable, convenient air travel. Allegiant and Sun Country are well positioned to create one of the most adaptable and resilient airline models in the industry, with the ability to respond quickly to changing market conditions, traveler demand, and charter and cargo partner needs. The combination of two financially strong leisure carriers in the U.S. will create benefits for customers, communities, employees, and partners by enhancing stability, expanding opportunities, and enabling continued investment and innovation.”
According to this official document of frequently asked questions from Sun Country Airlines, 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 location — the company will maintain a significant presence in Minneapolis, which is the current headquarters of Sun Country Airlines.
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
Many people were surprised by the news which was announced on Sunday, January 11, 2026, as they did not see it coming.
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.
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 Spirit Airlines…
…that is, if Spirit Airlines can remain in business and survive…
All photographs ©2019 and ©2023 by Brian Cohen.
