New York, Jan 12, 2026, 09:49 AM ET — Regular session
- Sun Country shares climbed roughly 13% after Allegiant agreed to acquire the airline in a cash-and-stock transaction
- Allegiant shares dropped roughly 4% as investors digested the costs and potential hurdles of integration
- Traders are focusing on the gap to the offer price and how the antitrust review will unfold
Shares of Sun Country Airlines Holdings (SNCY) jumped in early U.S. trading Monday after Allegiant Travel (ALGT) announced plans to acquire the airline in a roughly $1.5 billion deal, debt included. Sun Country’s stock rose 12.8% to $17.79, while Allegiant’s dipped 3.9% to $91.24. 1
Sun Country investors aren’t just betting on an airline anymore. The stock’s price now hinges on whether the deal goes through—and how Allegiant’s shares move in the meantime.
This move drags a smaller carrier into the consolidation race amid persistent cost pressures and fierce fare competition. It also gives regulators one more airline merger to scrutinize, even as dealmakers push hard to build scale.
Allegiant is proposing $4.10 in cash plus 0.1557 Allegiant shares for each Sun Country share, valuing the deal at $18.89 per share — roughly a 19.8% premium over Friday’s closing price, the companies announced. They expect $140 million in annual synergies, combining cost savings and revenue gains, by the third year post-close. The deal is projected to be accretive to earnings per share within a year. Allegiant CEO Gregory C. Anderson described the move as “an exciting next chapter,” while Sun Country CEO Jude Bricker said it “delivers significant value” for shareholders. 2
Since the deal includes Allegiant stock, its value shifts alongside ALGT’s price. Based on Monday’s closing figures, the offer values Sun Country shares at around $18.31 each, with SNCY trading about 3% under that mark.
William Swelbar, chief industry analyst at Swelbar Zhong Consultancy, called it “the best news to come from the Value Airline sector in a very long time” in a client note cited by Aviation Week. Some industry watchers agree with that take. 3
Clearing the deal remains the biggest hurdle. Airline mergers are under more intense scrutiny these days, and last year a U.S. judge shot down JetBlue Airways’ attempt to acquire Spirit Airlines — a clear signal that antitrust reviews can blow up even the most straightforward plans. 4
The numbers can shift quickly. As Allegiant shares drop, the implied value slides too, and a lengthy review period might revive concerns over demand, labor, and fuel expenses.
Traders are watching closely for any merger filings detailing breakup terms, while also tracking the gap between SNCY’s price and the evolving offer value. Sun Country is set to release quarterly results on Feb. 3, per Nasdaq, which might clarify the stand-alone value beneath the bid. 5
