NEW YORK, January 13, 2026, 01:13 (EST)
- Allegiant will acquire Sun Country in a cash-and-stock transaction valued at roughly $1.5 billion, including net debt
- Sun Country shareholders will receive $4.10 in cash plus 0.1557 Allegiant shares for each Sun Country share, valuing it at $18.89 per share
- By the third year post-close, the companies expect to realize $140 million in annual synergies, aiming to finalize the deal in the second half of 2026
Allegiant Travel Co (ALGT.O) is set to acquire Sun Country Airlines (SNCY.O) in a $1.5 billion deal involving both cash and stock, merging two U.S. airlines focused mainly on leisure travel routes.
Shares of Sun Country jumped roughly 11% Monday, while Allegiant slipped about 6%. Investors seemed split, weighing the hefty premium against potential cost savings and expanded routes. Investopedia
The timing isn’t a coincidence. Low-fare airlines have been chasing more stable profits as fuel, labor, and airport expenses remain stubbornly high, while pricing swings sharply whenever demand shifts.
Allegiant pitched the merger as a way to balance out seasonality by combining its leisure-heavy network with Sun Country’s mix of scheduled flights, charters, and cargo operations. The company told investors it aims to achieve $140 million in annual synergies — both cost savings and extra revenue — by the third year post-close. It also said the deal should boost earnings per share (EPS) within a year after closing. Allegiantair
Sun Country shareholders are set to get $4.10 in cash plus 0.1557 shares of Allegiant stock for each Sun Country share, the companies announced. This values Sun Country at an implied $18.89 per share. The deal offers a 19.8% premium over Sun Country’s closing price on January 9, putting the company’s total valuation around $1.5 billion, which includes about $400 million in net debt. Prnewswire
The merged airline will cover nearly 175 cities through more than 650 routes, operating about 195 aircraft, the companies said. It plans to base its headquarters in Las Vegas while keeping a strong foothold in Minneapolis–St. Paul, Sun Country’s home base. Apnews
Gregory Anderson will take the helm as CEO of the merged company, while Allegiant’s President and CFO, Robert Neal, will remain in charge of finance. Anderson described the merger as “an exciting next chapter.” Sun Country CEO Jude Bricker called it “an exciting next step” for the airline, which has been around for 43 years. Allegiantair
Sun Country assured customers it’s business as usual for now: reservations remain unchanged and rewards points won’t lose value. Both airlines will keep selling and ticketing flights independently until the deal closes. The loyalty programs will merge afterward. Suncountry
Allegiant announced the combined network will feature 551 Allegiant routes alongside 105 Sun Country routes, unlocking access to 18 international destinations currently served by Sun Country. At closing, it plans to operate roughly 195 aircraft, with 30 more on order and 80 options available.
Cargo plays a major role here. Allegiant CEO Greg Anderson told analysts on a call that the “cargo part is very important” to Sun Country and expects it to keep growing. Meanwhile, Bricker noted Amazon plans to add two more freighters this year, calling their partnership an “increasingly important contributor” to revenue. Susquehanna analyst Christopher Stathoulopoulos said the merger makes strategic sense, pointing to limited route overlap and similarly flexible models mixing scheduled and charter flights. Freightwaves
However, the deal requires U.S. antitrust approval and shareholder votes before moving forward. The carriers also need a single operating certificate from the Federal Aviation Administration, the green light that allows them to operate as one airline on a unified set of procedures. Any hold-up, a slump in leisure travel, or a spike in jet fuel prices could delay the expected cost savings and revenue boosts the companies are projecting.
