Allegiant Air Announces $1.5 Billion Merger with Sun Country Airlines

In a major shakeup for the North American aviation industry, Allegiant Airlines announced late yesterday it will acquire Sun Country Airlines in a cash and stock transaction valued at approximately $1.5 billion.

The deal, which is expected to close in the second half of 2026, aims to create a dominant "leisure-focused" powerhouse with a combined network of over 650 routes.

This merger is particularly significant for travelers in mid-sized U.S. cities, as it promises expanded low-cost access to vacation hotspots across Canada, Mexico, and the Caribbean.

The move comes at a time when budget carriers are under intense pressure to scale up against legacy airlines. Allegiant’s CEO stated this morning that the integration will unify roughly 195 aircraft, significantly increasing nonstop flight availability for the 2026 summer season.

While the antitrust clearance process is still pending, both airlines have assured passengers that current bookings, loyalty programs, and flight schedules will remain unaffected through the transition period.