Allegiant and Sun Country Airlines to Merge, Creating a Leading, More Competitive Leisure Airline

Allegiant has announced that they will merge with Sun Country Airlines.  The combination will create an airline with 195 aircraft serving nearly 175 cities with 650 routes.

Allegiant and Sun Country Airlines Announce Definitive Merger Agreement - Courtesy Allegiant Travel Company

On Sunday (January 11, 2025), Allegiant Travel Company announced a definitive merger agreement under which Allegiant will acquire Sun Country in a cash and stock transaction at an implied 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 percent over Sun Country's closing share price of $15.77 on January 9, 2026, and 18.8 percent based on the 30-day volume-weighted average price. The transaction values Sun Country at approximately $1.5 billion, inclusive of $0.4 billion of Sun Country’s net debt.  Upon closing, Allegiant and Sun Country shareholders will own approximately 67% and 33%, respectively, of the combined company on a fully diluted basis.

In Sunday’s announcement, Allegiant’s CEO, Gregory C. Anderson, 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.”

Also commenting on the merger, Sun Country’s President and CEO, Jude Bricker, said,

“Over Sun Country’s 43-year history, we have grown to become one of the nation’s most respected low-cost, leisure airlines with a unique business model for serving scheduled service and charter passengers as well as delivering cargo, with a strong brand and deep roots in Minnesota.  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.  We are two customer-centric organizations, deeply committed to delivering affordable travel experiences without compromising on quality.  Importantly, we believe this transaction delivers significant value to Sun Country shareholders and an opportunity to continue to benefit from our growth plans as a combined company.”

The merger will create a leading leisure-focused U.S. airline, expanding service to more popular vacation destinations across the U.S., as well as international destinations.  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.

This combination will connect Minneapolis-St. Paul (MSP) to Allegiant’s mid-sized markets, and expand nonstop service to popular vacation spots, with a continued focus on underserved markets across the U.S. while expanding opportunities into international locations.  With access to Sun Country’s vast international network across Mexico, Central America, Canada, and the Caribbean, the combined airline will also offer Allegiant customers access to expanded service from their small and mid-sized cities to 18 international destinations.

Additionally, the combined airlines will offer an enhanced loyalty rewards program with expanded frequent flyer and membership benefits, combining the best of both airlines’ programs. Adding Sun Country’s over 2.0 million members to Allegiant’s 21 million member will further enhance the relevance of the combined program, driving greater customer rewards.

Team members of both airlines will also benefit from a larger network and fleet, which will create new roles, advancement opportunities, and cross-training possibilities across the combined airline.  Both airlines’ emphasis on safety, hospitality, and affordable leisure travel will remain central to training, operations, and customer care.  In addition to expanded leisure travel opportunities, the combined airline’s diversified operations, including Sun Country’s long-term charter contracts and cargo partnerships, will create more year-round flying opportunities for pilots, crews, and operations personnel.  This stability will support career growth, cross-training, and operational efficiency across the combined network.

Upon closing, Allegiant will continue to be the publicly held parent company and the combined company will continue under the Allegiant name.  However, each airline will operate separately until the airline operations obtain a single Air Operating Certificate (AOC) from the FAA, which will consolidate the airlines’ operations, procedures, and safety protocols into one framework.

Allegiant CEO Gregory C. Anderson will serve as Chief Executive Officer of the combined company, and Robert Neal will serve as President and Chief Financial Officer.  Sun Country’s President and CEO Jude Bricker will join the Board of Directors, alongside two additional Sun Country Board members, expanding the size of the Allegiant board to 11.  Maury Gallagher, Chairman of the Board of Allegiant, will serve as Chairman of the Board of the combined company, while Jude Bricker will serve as an advisor to Mr. Anderson to help ensure a smooth and successful integration.  The combined company will be headquartered in Las Vegas and will maintain a significant presence in Minneapolis-St. Paul where Sun Country is based.

The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2026, subject to receipt of U.S. federal antitrust clearance and other required regulatory approvals, the approval of both companies' shareholders and other customary closing conditions.

Source: Allegiant Travel Company