Allegiant and Sun Country Airlines have announced a definitive merger agreement which will see Allegiant acquire Sun Country in a cash and stock transaction at an implied value of 18.89 USD per Sun Country share.
The acquisition will lead to the creation of a new, leisure-focused US airline, which will seek to offer services to popular vacation destinations across the globe.
In a statement; the two companies have stated that the combination of both entities will enable benefits for customers, communities, employees and partners by enhancing stability, expanding opportunities and allowing continued investment and innovation.
Gregory C. Anderson, Allegiant CEO, said: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. We have long admired Sun Country for their well-run, flexible, and diversified business model that optimises for year-round utilisation 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 travellers, partners, Team Members, shareholders, and the communities we serve.
Jude Bricker, Sun Country President & CEO, said: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 U.S.
We are two customer-centric organisations, 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 merger will bring together complementary route networks across Allegiant’s small and mid-sized localities and Sun Country’s larger cities and will provide more than 650 routes, including 551 Allegiant routes and 105 Sun Country routes, connecting MSP to Allegiant’s mid-sized markets and enabling an expansion of non-stop services to popular vacation destinations.
Once combined, the new airline will seek to offer an expanded service from small and mid-sized cities to 18 international destinations, with integrated scheduling and fleet management expected to enhance on-time performance, reliability. New route planning is also expected to enhance on-time performance as a whole.
The merger will see the addition of 2 million of Sun Country’s loyalty scheme members to Allegiant’s 21 million member base, which will receive expanded frequent flyer and membership benefits.
Unanimously approved by both boards of directors, the transaction is expected to be finalised in the second half of 2026, pending the receipt of US federal antitrust clearance and other required regulatory approvals.
