The US Department of Justice has granted antitrust clearance to Allegiant Air’s acquisition of Sun Country Airlines, which is an “important step toward the combination of the two airlines,” Allegiant said.

The proposed merger remains subject to other closing conditions, including approval from the Department of Transportation (DOT) and the approval of the shareholders of both companies. The transaction is expected to close in the second or third quarter of 2026.

Greg Anderson, chief executive of Allegiant Air, said: “We are pleased to receive US antitrust clearance from the Department of Justice. We remain confident that this combination will deliver meaningful benefits,” adding that these will create a stronger, leisure-focused airline, offering a broader network.

The takeover, for a total consideration of USD1.5 billion, includes Sun Country shareholders receiving USD18.89 per share, each comprising USD4.10 in cash and 0.1557 share in parent Allegiant Travel. After the transaction closes, the current shareholders of Sun Country Airlines will hold about 33% stake in the combined company, with the current shareholders of Allegiant Travel retaining 67%.

ch-aviation fleets data shows Sun Country’s fleet comprises forty-four B737-800s, twenty-one B737-800(BCF)s, and three B737-900ERs (with two more to come), while Allegiant’s fleet numbers thirty-one A319-100s, eighty A320-200s, and seventeen B737-8-200s.