Allegiant Travel Completes $1.5 Billion Sun Country Acquisition
The deal unites two profitable leisure carriers to create a scaled, flexible-capacity airline with 195 aircraft and nearly 175 destinations.
**Allegiant Travel (ALGT) completed its acquisition of Sun Country Airlines Holdings, Inc. (SNCY) on May 13, 2026, in a cash-and-stock transaction that values the Minneapolis-based carrier at approximately $1.5 billion, including $0.4 billion of Sun Country’s net debt.**
The deal structure delivered Sun Country shareholders 0.1557 Allegiant shares and $4.10 in cash for each share they owned, implying a total consideration of $18.89 a share—an 18.8% premium to Sun Country’s 30-day volume-weighted average price and a 19.8% premium to its January 9, 2026, closing price. Upon closing, Allegiant shareholders owned approximately 67% of the combined company on a fully diluted basis, with Sun Country shareholders holding the remaining 33%.
Allegiant framed the acquisition as a move to solidify its leadership in the U.S. leisure-travel segment, where five carriers control 85% of the domestic market. The combined airline serves nearly 175 cities across the United States and international destinations, operates more than 650 routes, and flies a fleet of 195 aircraft. Both carriers share a flexible-capacity model that matches aircraft utilization to peak leisure demand, a strategy that has allowed them to remain profitable while other low-cost carriers have struggled.
"Today marks a defining moment in Allegiant’s history as we officially join forces with Sun Country to create the leading leisure-focused airline in the United States," said Allegiant CEO Gregory C. Anderson. "By bringing together two strong airlines with similar business models, we are creating a more differentiated and durable airline—one well positioned to deliver lasting value for our customers, team members, and shareholders."
Sun Country, founded in Minneapolis in 1982, has built a business around scheduled passenger service, charter flights, and cargo operations, with a focus on underserved leisure markets. Its fleet of Boeing 737-800s complements Allegiant’s Airbus A320 family and Boeing 737 MAX aircraft, providing operational flexibility and cost efficiencies across passenger and cargo operations. The carriers’ route networks have minimal overlap, reducing integration friction and preserving frontline roles.
The transaction is expected to generate $140 million in annual synergies by the third year post-close and be accretive to earnings per share in the first year. Allegiant has committed to maintaining a significant presence in Minneapolis-St. Paul, where Sun Country is headquartered, and to operating both brands separately in the near term while pursuing a single operating certificate from the FAA.
Regulatory and shareholder approvals were secured ahead of the May 13 close, clearing the path for integration planning led by Allegiant’s Integration Management Office. The combined loyalty programs—Allegiant Allways Rewards and Sun Country Rewards—will remain separate initially, with members retaining current benefits and account status. Customers can continue to book and manage travel through existing channels without disruption to flight schedules or reservations.