Allegiant Travel plans to take over Sun Country Airlines (SY, Minneapolis St. Paul International) for a total consideration of USD1.5 billion, resulting in the combination of Allegiant Air (G4, Las Vegas Harry Reid) and Sun Country into a single airline. The transaction was already approved by both boards and, contingent on antitrust approvals, is expected to close in the second half of 2026.

"We have long admired Sun Country for their well-run, flexible, and diversified business model that optimizes for year-round utilization and strong margins. Together, our complementary networks will expand our reach to more vacation destinations including international locations," Allegiant's chief executive Gregory C. Anderson said.

Sun Country's shareholders will receive implied USD18.89 per each share, comprising USD4.10 cash and 0.1557 share in Allegiant Travel. Once the transaction closes, the current shareholders of Sun Country Airlines will hold an approximately 33% stake in the combined company, while the current shareholders of Allegiant Travel will retain a 67% stake. The transaction includes around USD400 million in debt held by Sun Country Airlines.

Allegiant Travel, the parent company of Allegiant Air, will continue to be the publicly held parent, with both airlines operating under their respective names until closing. Once the transaction closes, the two operating certificates will be consolidated under Allegiant's name.

Anderson will serve as CEO of the combined company. Jude Bricker, Sun Country CEO, will join Allegiant's board of directors together with two other appointees from Sun Country.

The combined company will remain based in Las Vegas, where Allegiant has its headquarters, but will retain "a significant presence in Minneapolis-St. Paul where Sun Country is based," the companies said.

The airlines pointed out that they are both focused on the leisure market, but their network is largely complimentary rather than competitive. Sun Country has its sole base at Minneapolis St. Paul International and serves primarily southbound markets from the city. Allegiant Air, meanwhile, has 23 bases around the country, and focuses on serving Florida and the south-west. Its five largest airports by capacity are Orlando Sanford, Punta Gorda, FL, St. Petersburg/Clearwater, Las Vegas Harry Reid, and Mesa Gateway Airport, ch-aviation data shows.

Allegiant Air operates exclusively domestically in the United States. It has a tentative agreement to establish a joint venture with Viva (Mexico), but the partnership has been held back by political disagreements between the US and Mexico. Viva recently announced a plan to merge with local LCC rival Volaris, although the proposed transborder JV has not been terminated. Meanwhile, Sun Country Airlines operates to multiple destinations in the Caribbean.

The airlines will also benefit from growing fleet commonality as Allegiant Air transitions to B737 MAX operations. It currently operates thirty-one A319-100s, eighty-four A320-200s, and sixteen B737-8-200s, but has another thirty-four B737-8-200s on order. Meanwhile, Sun Country operates forty-five B737-800s, twenty B737-800(BCF)s, and three (of five planned) B737-900ERs. The companies confirmed that cargo operations on behalf of Amazon.com will continue as a way to diversify revenues.