by Donald Wood
Last updated: 8:00 AM ET, Mon January 12, 2026
Budget carrier Allegiant announced Sunday night that it
plans to acquire Sun Country Airlines in a $1.5 billion cash and stock deal.
Upon the proposed closing of the deal and pending approval, Allegiant
and Sun Country shareholders will own approximately 67 percent and 33 percent,
respectively, of the combined company on a fully diluted basis.
“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,”
Allegiant CEO Gregory C. Anderson said.
“We have long admired Sun Country for their well-run,
flexible, and diversified business model that optimizes for year-round
utilization and strong margins,” Anderson continued. “Together, our
complementary networks will expand our reach to more vacation destinations
including international locations.”
Anderson said Allegiant initially approached Sun Country in
late fall 2025, with plans already in place for the CEO to become the leader of
the combined airline when the deal is approved. Sun Country CEO Jude Bricker will
join Allegiant's board.
Airline officials expressed confidence that the agreement
would receive approval from the United States Government—as their routes strategies
typically do not overlap—despite previous issues with airline
mergers involving budget carriers.
Anderson expects the deal to close in the second half of 2026.
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