Low-cost airline Allegiant Travel Company announced on Sunday that it will acquire Sun Country Airlines in a deal valued at about $1.5 billion, including
debt. The agreement will bring together two well-known budget carriers and significantly expand their combined flight network. Under the deal, Sun Country shareholders will receive 0.1557 shares of Allegiant stock plus $4.10 in cash for each Sun Country share they own. This values Sun Country shares at $18.89 each, which is about a 19.8% premium compared to the airline’s closing stock price of $15.77 on Friday.
The companies said the acquisition is designed to strengthen their position in the low-cost airline market and create a larger network serving more travelers across the United States and beyond.
What It Means For Passengers?
The merger will greatly grow the airlines’ network. After joining, Allegiant and Sun Country will fly to many more cities across the United States and some international locations, giving travelers more choices at low prices.
The combined airline will have around 195 planes. It will also receive more planes that are already on order and may buy additional aircraft in the future. With a bigger fleet, the airline expects to run flights more efficiently and slowly add new routes over time.
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The new company will be headquartered in Las Vegas, Allegiant’s current home base. Both airlines said the combination will help them better compete in the crowded airline industry while keeping costs low.
Once the deal closes, Allegiant shareholders will own about 67% of the combined company, while Sun Country shareholders will own about 33%.
Allegiant’s current CEO, Gregory Anderson, will lead the merged airline as chief executive officer. Robert Neal will serve as president and chief financial officer. Sun Country’s CEO, Jude Bricker, will join the company’s board of directors, ensuring continued representation from Sun Country’s leadership.
The companies expect the merger to generate about $140 million in annual cost savings and efficiencies by the third year after the deal closes. They also said the transaction is expected to boost earnings per share in the first year after completion.
The deal is expected to close in the second half of 2026, pending regulatory approvals and shareholder consent.
(With inputs from Reuters)
