Allegiant and Sun Country Airlines have agreed to combine into a larger, more competitive U.S. leisure-focused airline through a definitive. The deal aims to leverage both carriers’ flexible, low-cost operating models to offer expanded service to popular vacation destinations across the United States and internationally.
The combined airline will serve roughly 22 million passengers annually with a fleet of around 195 aircraft on more than 650 routes to nearly 175 cities, strengthening the carriers’ networks and connecting smaller communities with major leisure markets. Under the agreement, Sun Country shareholders will receive both cash and Allegiant stock, representing a premium to recent trading prices, with Allegiant shareholders owning about two-thirds of the combined company.
Leadership and branding will be anchored by Allegiant, which will remain the publicly listed parent company headquartered in Las Vegas. Allegiant CEO Gregory C. Anderson will lead the merged airline, and Sun Country CEO Jude Bricker will join the board. While the airlines will operate independently until they obtain a single FAA operating certificate, they plan to maintain significant operational bases, including Sun Country’s Minneapolis-Saint Paul presence.
Executives from both carriers emphasized that the merger will create operational and financial efficiencies, with projected annual synergies of about $140 million by the third year post-closing.
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