LAS VEGAS — Allegiant Air has completed its long-anticipated acquisition of Sun Country Airlines, marking a significant consolidation in the ultra-low-cost carrier sector and creating one of the largest leisure-focused airlines in the United States.
The $1.5 billion cash-and-stock transaction closed on May 13, 2026, after clearing regulatory reviews from the Department of Transportation and securing approvals from shareholders of both companies. The Las Vegas-based carrier will integrate Sun Country’s operations, including its charter services and substantial cargo business contracted with Amazon.
With the addition of approximately 60 Boeing 737-700 and -800 aircraft from Sun Country, the combined fleet now stands at 195 narrowbodies. The airlines together serve nearly 175 cities across more than 650 routes, reaching about 22 million passengers per year. Allegiant has also inherited firm orders for 30 more Boeing 737 MAX 8-200s and options for 80 additional narrowbodies.
“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 Greg Anderson, who continues as CEO of the enlarged group. Jude Bricker, Sun Country’s former CEO, has joined Allegiant’s board along with two other Sun Country executives.
Both airlines will maintain separate brands, websites and frequent-flyer programs in the near term while they work toward a single FAA operating certificate. Customers should see no immediate changes to flights, reservations or loyalty benefits. Frontline employees including pilots and flight attendants will remain in their current roles, with existing union agreements preserved.
The merger brings together two carriers with similar flexible scheduling philosophies that adjust capacity to match demand peaks and troughs. This approach helped both weather industry turbulence that contributed to the recent shutdown of Spirit Airlines. Sun Country’s diversified revenue from charters for sports teams, casinos, the Department of Defense and its Amazon cargo fleet further bolsters the combined entity.
Allegiant anticipates realizing roughly $140 million in annual synergies within three years through network expansion, fleet optimization and procurement savings. The deal is forecast to be accretive to earnings per share in its first full year while preserving a strong balance sheet.
Minneapolis-St. Paul International Airport will remain an important operating base. However, industry observers note that growth opportunities may be constrained by the limited number of suitable secondary airport pairs that fit the low-frequency, leisure-focused model. Competitors such as Frontier, Avelo and Breeze are also vying for similar market segments.
The transaction comes as the U.S. airline industry sees renewed interest in consolidation, with the current administration appearing more open to such combinations. Allegiant’s stock will continue trading under ALGT, while Sun Country’s SNCY ticker has been retired.
While the company has not been immune to elevated jet fuel prices, its first-quarter profit rose 32 percent year-over-year. The combined operation is positioned for greater resilience through economic cycles thanks to its scale and diversified business lines.
Integration will proceed deliberately with a focus on safety, reliability and customer experience. Some corporate positions may be eliminated where functions overlap, but the company pledged to handle any changes with fairness and transparency.