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Allegiant Airlines Announces Planes to Merge with Sun Country
Two budget airlines known for bringing passengers to popular vacation destinations are planning to merge.
About the Allegiant-Sun Country Merger:
On Sunday, Allegiant Airlines announced plans to acquire Sun Country Airlines. The cash and stock transaction values the latter airline at approximately $1.5 billion.
The combined airline will be the leading “leisure-focused” U.S. airline, serving nearly 157 cities with more than 650 routes and 195 aircraft. That includes 551 current Allegiant routes plus 105 from Sun Country. Allegiant notes that, post-merge, its small and mid-sized markets will have access to 18 international destinations that Sun Country currently serves.
Should this deal go through, the airline will continue to operate under the Allegiant name. While the carrier will be headquartered in Las Vegas, Allegiant says it will retain a “significant presence” in Sun County’s home of Minneapolis-St. Paul (MSP). This proposed merger will need regulatory approval, but is expected to close in the second half of 2026.
What They’re Saying:
Announcing the merger plans, Allegiant CEO Gregory Anderson stated, “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 optimizes for year-round utilization and strong margins. Together, our complementary networks will expand our reach to more vacation destinations including international locations.”
He added, “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.”
Meanwhile, Sun Country President & CEO Jude Bricker (who will join the Allegiant Board of Directors alongside two additional Sun Country Board members as part of the transaction) 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.”
My Thoughts:
For whatever reason, I thought that Allegiant and Sun Country already had some sort of relationship. In fact, when I saw Sun Country on a sign for Harry Reid International Airport this weekend, it took me a minute to remember that this wasn’t the same as Allegiant. Well, I guess I was just ahead of my time on that one.
Perhaps my association was that both airlines had similar business models. Thus, it makes perfect sense that the two would come together and effectively “level up” overall.
Of course, there’s a lot going out outside of this proposed merger that could impact whether or not it goes through. For one, other recent airline mergers, such as JetBlue’s purchase of Spirit have been blocked. And speaking of Spirit, that budget airline has found itself in bankruptcy once again, leading to speculation that another shot at a merger could be imminent.
That said, while Spirit and Allegiant are both budget airlines, I’d argue that they are very different in their approach. In short, Allegiant tends to fly unique routes from smaller markets (like Springfield, MO where I live) whereas Spirit largely serves as a low-cost alternative on popular routes served by other airlines. So, will this make a difference in terms of this merger gaining regulatory approval? We’ll have to wait and see.
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