Allegiant to Acquire Sun Country in $1.5 Billion Merger

Allegiant Travel on Sunday announced it was acquiring fellow budget airline Sun Country in a $1.5 billion deal.

The deal, which is has to be approved by shareholders along with the U.S. Department of Justice and Department of Transportation, will see Allegiant acquire Sun Country in a cash and stock transaction that will value the airline at a 20% premium to Sun Country’s closing stock price on Friday. The airlines said they expect the deal to officially close in the second half of 2026.

The plan is for Gregory Anderson, the current CEO of Allegiant, to lead the combined airline. The two will be based in Las Vegas but will keep a “significant presence” in Minneapolis-St. Paul (MSP), which is Sun Country’s home.

Allegiant, the larger of the two airlines, flies 551 routes and has a 21 million member base. Sun Country flies 105 routes with a 2 million member base.

The new combined airline, with a fleet of close to 200 jets, will continue to focus on leisure passengers who want access to “popular vacation destinations across the U.S.” Both airlines traditionally target travelers headed to sun destinations, including some international destinations in Mexico, Central America, and the Caribbean.