Allegiant and Sun Country Airlines have announced a definitive merger agreement in which Allegiant will acquire Sun Country through a cash and stock transaction valued at approximately $1.5 billion, the Las Vegas-based carrier announced.
The merger aims to create a leading leisure-focused U.S. airline, expanding service to popular vacation destinations domestically and internationally while offering more travelers access to affordable, convenient air travel, officials said in a news release.
“We have long admired Sun Country for their well-run, flexible, and diversified business model that optimizes for year-round utilization and strong margins,” Allegiant CEO Gregory Anderson said in a statement.
He noted that the airlines share a vision of “providing affordable, reliable, and convenient service from underserved communities to premier leisure destinations,” adding that “together, our complementary networks will expand our reach to more vacation destinations including international locations.”
The combined entity will serve 22 million customers across nearly 175 cities and will merge the two carriers’ loyalty programs.
Sun Country CEO Jude Bricker called the merger “an exciting next step in our history as we join Allegiant to create one of the leading leisure travel companies in the U.S.”
The boards of directors of both companies have unanimously approved the transaction, which is expected to close in the second half of 2026, pending regulatory approvals.