Allegiant Travel Company has agreed to acquire Sun Country Airlines in a transaction valued at approximately $1.5 billion, to be paid in a combination of cash and stock. The deal represents a roughly 20 percent premium to Sun Country’s recent trading levels and includes the assumption of about $400 million in net debt. Upon closing, Allegiant shareholders will own approximately two-thirds of the combined entity, with Sun Country shareholders holding the remaining one-third.

The merger brings together two of the most consistently profitable ultra-low-cost carriers in the U.S., combining Allegiant’s focus on point-to-point leisure routes from secondary airports with Sun Country’s mix of scheduled services, charter operations and cargo flights for major e-commerce partners. Management forecasts that the complementary route networks and fleet commonality will enhance schedule flexibility and network density, particularly in underserved markets.

Management estimates that the combined airline can deliver approximately $140 million in annual cost synergies by the end of the third year following deal closure. Key savings are expected from joint network planning, consolidated maintenance operations and shared marketing, with incremental revenue opportunities arising from expanded charter and cargo partnerships. Analysts at Deutsche Bank have highlighted that both airlines have maintained solid operating margins, projecting the transaction will boost return on invested capital over the medium term.

The transaction is slated to close in the second half of 2026, subject to regulatory approvals and the receipt of a single operating certificate from the Federal Aviation Administration. Allegiant’s current CEO, Gregory Anderson, will lead the combined company, which will retain its Las Vegas headquarters while maintaining a significant operational presence in Minneapolis–St. Paul. Sun Country’s CEO, Jude Bricker, will join the board and serve as a senior advisor, supporting the integration and continued growth strategy.