Major budget airlines announce merger in $1.5B | Travel News

Allegiant Air introduced that it’s buying rival budget airline Sun Country in a $1.5 billion money and stock deal, together with debt of roughly $400 million. 

The corporations introduced the merger on Sunday, Jan. 11, marking the primary main airline deal of 2026. As a half of the deal, Sun Country shareholders will obtain 0.1557 Allegiant shares in addition to $4.10 in money for every share.

Las Vegas-based Allegiant and Minneapolis-based Sun Country might be headquartered in Las Vegas, Nevada, following the mix of the 2 corporations. However, the carriers will proceed to take care of a vital presence in the Minneapolis and St. Paul space.

The deal has already been unanimously authorized by the boards of administrators of each corporations. If the transaction is authorized by regulatory authorities, the merger is predicted to close in the second half of 2026.

Upon the deal’s closure, Sun Country shareholders will maintain a 33% stake in the mixed airline, whereas Allegiant Air shareholders will own a 67% stake.

Why are Allegiant Air and Sun Country merging? 

Both Allegiant and Sun Country have centered on price-sensitive Americans looking for direct flights to well-liked trip locations throughout the U.S.

According to the information release, the merger of the 2 smaller carriers will “create a leading leisure-focused U.S. airline,” and they’re going to develop service to well-liked home and worldwide locations for U.S. vacationers.

“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,” said Allegiant CEO Gregory C. Anderson in a statement. “Together, our complementary networks will expand our reach to more vacation destinations including international locations.”

Anderson will be the CEO of the combined companies following the merger’s close. Sun Country’s CEO Jude Bricker will join the company’s board alongside two other members.

“Today marks an exciting next step in our history as we join Allegiant to create one of the leading leisure travel companies in the U.S.,” Bricker said in a statement. “We are two customer-centric organizations, deeply committed to delivering affordable travel experiences without compromising on quality.”

Allegiant and Sun Country aim to create an “adaptable and resilient” combined airline that will be able to “respond quickly to changing market conditions, traveler demand, and charter and cargo partner needs.”

How will Allegiant Air’s routes change after the Sun Country merger? 

The companies remain committed to offering affordable leisure travel, and they state that they will serve a combined 22 million passengers annually upon the merger’s closure.

They will provide 650 routes, including 551 Allegiant routes and 105 Sun Country routes, flying to nearly 175 cities. Their combined fleet of aircraft will comprise 195 airplanes.

Allegiant customers will be able to book flights from small and mid-sized cities to 18 international destinations, as Sun Country has an international network across Mexico, Central America, Canada, and the Caribbean.

While the routes are mentioned to develop when the businesses mix, in September of 2025, Allegiant Air scheduled its remaining flights out of the Los Angeles International Airport after almost 20 years of service. The final Allegiant flight departed from LAX on Jan. 3, 2026, and the company cited rising operational prices as the explanation for the change.