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Allegiant announced plans to acquire Sun Country Airlines in a deal valued at about USD 1.5 billion, including debt. Sun Country shareholders will receive 0.1557 Allegiant shares and USD 4.10 per share in cash, representing a nearly 20 percent premium over recent prices. The merged airline will operate around 195 aircraft across more than 650 routes, serving approximately 175 cities. Allegiant's CEO will lead the combined company, while Sun Country's CEO will join the board. The deal is expected to close in the second half of 2026, pending approvals.
Allegiant is set to acquire Sun Country Airlines in a USD 1.5 billion transaction, including the airline's debt. Under the agreement, Sun Country shareholders will receive 0.1557 Allegiant shares plus USD 4.10 in cash for each share they hold. This values Sun Country stock at roughly USD 18.89 per share, around 20 percent above its recent market price. Advertisement
The combined airline will be headquartered in Las Vegas and is expected to operate about 195 aircraft on more than 650 routes, connecting approximately 175 cities in the United States and selected international destinations. The expanded network is aimed at strengthening Allegiant's focus on leisure travel, particularly connecting popular vacation spots and underserved regional markets.
Ownership of the merged company will be split with Allegiant holding around two thirds and Sun Country shareholders holding the remaining one third. The companies project that the merger will generate about USD 140 million in annual synergies by the third year through cost savings and operational efficiencies. The merger is also expected to be accretive to earnings in the first year after completion.
Leadership of the combined airline will remain stable: Allegiant's CEO will continue as the head, and Sun Country's CEO will join the board of directors. Both airlines have assured that passengers should not see immediate changes to ticketing, flight schedules, or travel experience until the merger is finalized and regulatory approvals are obtained.
Sun Country's Amazon Air cargo contract adds strategic value, providing steady revenue even when passenger demand fluctuates. Allegiant considers this cargo business an important factor for diversification and long-term stability alongside the leisure travel network.
The merger still requires shareholder approval and regulatory clearance. The companies aim to complete the transaction in the second half of 2026. Key hubs at Las Vegas and Minneapolis St. Paul will be maintained, preserving Sun Country's existing markets and cargo operations while integrating fleets and routes to improve efficiency.
Source Reuters
5th Jun, 2025
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