Allegiant and Sun Country Airlines to merge, forming a network of 650 domestic and international routes

Allegiant and Sun Country Airlines have announced plans to merge in a move the companies say will provide air travelers with access to more affordable domestic and international flights.

The backstory:

Allegiant, based in Las Vegas, serves small-to-medium cities across the U.S. with nonstop flights with low fares. 

Sun Country Airlines, based in Minnesota, offers charter flights and provides cargo service to Amazon, with flights throughout the United States and to destinations in Mexico, Central America, Canada, and the Caribbean.

The companies say the merger will expand air travel options offering more affordable, convenient air travel to popular vacation destinations across the country, as well as international destinations.

By the numbers:

The deal has Allegiant acquiring Sun Country in a cash and stock transaction at an implied value of $18.89 per Sun Country share, valuing Sun Country at approximately $1.5 billion, inclusive of $0.4 billion of Sun Country's net debt.

Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country share owned, representing a premium of 19.8% over Sun Country's closing share price of $15.77 on Jan. 9, 2026, and 18.8% based on the 30-day volume-weighted average price.

Once the deal closes, Allegiant and Sun Country shareholders will own approximately 67% and 33%, respectively, of the combined company on a fully diluted basis.

The merger, unanimously approved by the boards of directors of both companies, is expected to close in the second half of 2026 after obtaining U.S. federal antitrust clearance and other required regulatory approvals, and the approval of both companies' shareholders and other customary closing conditions.