Allegiant and Sun Country Airlines have announced a definitive merger agreement under which Allegiant will acquire Sun Country in a cash and stock transaction at an implied value of $18.89 per Sun Country share.
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 January 9, 2026, and 18.8% based on the 30-day volume-weighted average price.
The transaction values Sun Country at approximately $1.5bn, inclusive of $400,000 of Sun Country's net debt. Upon closing, Allegiant and Sun Country shareholders will own approximately 67% and 33%, respectively, of the combined company on a fully diluted basis.
The combination is aiming to create a leading leisure-focused US airline, expanding service to more popular vacation destinations across the United States, as well as international destinations.
Upon closing, Allegiant CEO Gregory C. Anderson will serve as chief executive officer (CEO) of the combined company, and Robert Neal will serve as president and chief financial officer. Sun Country president and CEO Jude Bricker will join the Board of Directors, alongside two additional Sun Country Board members, expanding the size of the Allegiant board to 11. Maury Gallagher, chairman of the Board of Allegiant, will serve as chairman of the Board of the combined company. Jude Bricker will serve as an advisor to Anderson to help ensure a smooth and successful integration.
“This combination is an exciting next chapter in Allegiant and Sun Country's shared mission in providing affordable, reliable, and convenient service from underserved communities to premier leisure destinations,” says Gregory C. Anderson, Allegiant CEO. “We have long admired Sun Country for their well-run, flexible, and diversified business model that optimizes for year-round utilization and strong margins. Together, our complementary networks will expand our reach to more vacation destinations including international locations. With our combined strengths– including operational excellence, consistent profitability, strong balance sheets, and fleet ownership, we will create an even more resilient and agile airline that delivers greater value to travelers, partners, Team Members, shareholders, and the communities we serve.”
Jude Bricker, Sun Country President & CEO, commented: “Over Sun Country's 43-year history, we have grown to become one of the nation's most respected low-cost, leisure airlines with a unique business model for serving scheduled service and charter passengers as well as delivering cargo, with a strong brand and deep roots in Minnesota. Today marks an exciting next step in our history as we join Allegiant to create one of the leading leisure travel companies in the US. We are two customer-centric organizations, deeply committed to delivering affordable travel experiences without compromising on quality. Importantly, we believe this transaction delivers significant value to Sun Country shareholders and an opportunity to continue to benefit from our growth plans as a combined company."
The combined route network will provide more than 650 routes, including 551 Allegiant routes and 105 Sun Country routes. The company notes that the combination of the two airlines will provide greater scheduling agility, improved reliability, and dynamic route planning enhance on-time performance, adding that integrated scheduling and fleet management will enhance on-time performance. “By rapidly adjusting and expanding passenger and charter routes to support emerging vacation trends and expertly matching demand trends, the combined company can better service underserved markets and meet charter and cargo customer demands.”
The two frequent flyer programmes will also combined. Adding Sun Country's more than two million members to Allegiant's 21 million member base.
Allegiant and Sun Country say that they will “work closely” with employees and their unions — including pilots, flight attendants, mechanics, ground staff, and dispatchers — to ensure a “smooth and transparent integration process”. The company notes that all existing collective bargaining agreements will remain in effect.
Allegiant expects to achieve $140 million in annual synergies within three years following the closing and integration, primarily driven by the ability to provide more customers with more options across the combined network. Expected cost savings and revenue synergies are also expected from scale efficiencies, fleet optimization, and procurement.
The transaction is expected to be accretive to earnings per share one year post closing, while enhancing long-term financial results.
The combined company expects Net Adjusted Debt to EBITDAR of less than 3.0x at closing and to maintain balance sheet flexibility post-closing.
Sun Country remains a major narrow-body freighter operator in the US, with its multi-year agreement with Amazon Prime Air, as well as its charter contracts with casinos, Major League Soccer, collegiate sports teams, and the Department of Defense. With the addition of Allegiant's existing charter business, the combined airline will benefit from a further diversified business model that balances demand cycles, provides stable revenue streams, and maximizes aircraft and crew utilization.
Owning and operating both Airbus and Boeing aircraft – with the ability to source additional aircraft from new and existing markets – will enable the company to deploy aircraft where they deliver the greatest operational and financial benefit. The combined airline notes that it will have the scale to more fully utilize Allegiant's 737 MAX fleet and order book, improving fuel efficiency and capacity.
On closing, the combined airline will operate approximately 195 aircraft, with 30 on order and an additional 80 options.
The combined airline aims to deliver diversified revenue streams, including high ancillary revenues and long-term contracts in cargo and charter that are able to pass through fuel risk to the end customer, which the combined airline says are expected to provide greater resilience through economic cycles.
Following close, Allegiant will continue to be the publicly held parent company and the combined company will continue under the Allegiant name. However, each airline will operate separately until the airline operations obtain a single operating certificate from the FAA..
The combined company will be headquartered in Las Vegas and will maintain a significant presence in Minneapolis-St. Paul where Sun Country is based.
The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2026, subject to receipt of US federal antitrust clearance and other required regulatory approvals, the approval of both companies' shareholders and other customary closing conditions.
Barclays is serving as financial advisor, and Skadden, Arps, Slate, Meagher & Flom is serving as legal advisor, and FGS Global is serving as strategic communications advisor to Allegiant.
Goldman Sachs is serving as financial advisor and Milbank is serving as legal advisor, and Collected Strategies is serving as strategic communications advisor to Sun Country.