Allegiant and Sun Country Airlines have announced a definitive merger agreement under which Allegiant will acquire Sun Country in a combined cash and share transaction valuing the airline at approximately US$1.5 billion, including US$0.4 billion of net debt. The implied value is US$18.89 per Sun Country share.
Under the terms of the agreement, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and US$4.10 in cash for each share held. This represents a premium of 19.8% to Sun Country’s closing share price of US$15.77 on January 9, 2026, and 18.8% compared with the 30-day volume-weighted average price. Following completion of the transaction, Allegiant shareholders will own approximately 67% of the enlarged group on a fully diluted basis, with Sun Country shareholders holding the remaining 33%.
The transaction will create a leading US leisure-focused airline with an expanded network serving popular domestic holiday destinations, as well as selected international markets. The combined group aims to broaden access to affordable and convenient air travel while creating a highly adaptable and resilient business model capable of responding quickly to shifts in demand, market conditions, and charter and cargo requirements.
Both airlines emphasised that the combination of two financially strong leisure carriers is expected to deliver benefits for customers, employees, communities and partners, through greater stability, enhanced growth opportunities, and continued investment in innovation.
Allegiant will remain the publicly listed parent company, and the enlarged group will continue to operate under the Allegiant name. However, Allegiant and Sun Country will continue to operate as separate airlines until a single operating certificate is issued by the Federal Aviation Administration, consolidating operational processes and safety systems. There will be no immediate changes to ticketing, flight schedules, customer experience or the Sun Country brand, and customers will continue to book and travel with both airlines as usual.
On completion, Allegiant Chief Executive Officer Gregory C. Anderson will lead the combined company as CEO, with Robert Neal appointed President and Chief Financial Officer. Sun Country President and CEO Jude Bricker will join the Allegiant Board of Directors, alongside two additional Sun Country board members, expanding the board to 11 directors. Maury Gallagher will continue as Chairman of the Board, while Bricker will also act as an advisor to support a smooth integration.
The combined airline group will be headquartered in Las Vegas and will retain a significant operational presence in Minneapolis–St Paul, Sun Country’s home base.
