Allegiant and Sun Country Airlines have entered a definitive merger agreement under which Allegiant will acquire Sun Country in a cash-and-stock transaction valuing the carrier at approximately $1.5 billion, including net debt. Sun Country shareholders will receive $4.10 in cash and 0.1557 shares of Allegiant stock per share, representing a near 20% premium to recent trading prices. Upon completion, Allegiant shareholders will own about 67% of the combined company, with Sun Country shareholders holding the remaining 33%.
The transaction, approved by both boards, is expected to close in the second half of 2026, subject to regulatory and shareholder approvals. The combination brings together two profitable U.S. leisure-focused airlines, creating a broader network of more than 650 routes, expanded access to vacation destinations, and increased international service across Mexico, Central America, Canada, and the Caribbean.
Gregory C. Anderson, Chief Executive Officer of Allegiant, 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.” He added that the airlines’ complementary networks and strong balance sheets will support a more resilient business. Sun Country President and CEO Jude Bricker stated, “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.” He noted that the transaction delivers value to shareholders while supporting continued growth, employee opportunities, and long-term investment across passenger, charter, and cargo operations.
