Allegiant Acquires Sun Country Airlines for $1.5 Billion

Two Airlines Unite to Compete with Industry Giants

Allegiant announced on Sunday that it will acquire Sun Country Airlines for $1.5 billion, creating a leisure transportation operator capable of competing with Delta, American, United, and Southwest Airlines. Sun Country shareholders will receive $18.89 per share, representing a 20% premium over Friday's closing price. Allegiant shareholders will own 67% of the combined company, while Sun Country shareholders will hold 33%. This merger brings together two complementary networks: Allegiant operates from small to medium cities, whereas Sun Country flies from larger hubs like Minneapolis. Together, the two companies will serve 22 million passengers annually, covering 175 cities with over 650 routes and 195 aircraft. The four major U.S. airlines—Delta, American, United, and Southwest—control approximately 70% of the domestic market, making it challenging for smaller players to compete independently. The completion of this deal is expected in the second half of 2026, pending regulatory approval.