Allegiant Travel Company announced it has entered into a definitive agreement to acquire Sun Country Airlines in a cash-and-stock transaction
LAS VEGAS / MINNEAPOLIS — Jan. 11, 2026 — Allegiant Travel Company announced it has entered into a definitive agreement to acquire Sun Country Airlines in a cash-and-stock transaction valuing the Minnesota-based carrier at approximately $1.5 billion, including net debt. The merger is expected to close in the second half of 2026, pending regulatory and shareholder approvals.
Under the agreement, Sun Country shareholders will receive $4.10 in cash and 0.1557 shares of Allegiant stock per share, representing a 19.8% premium over Sun Country’s closing price on Jan. 9. Following the transaction, Allegiant shareholders will own about 67% of the combined company, with Sun Country shareholders holding the remaining 33%. The combined airline will continue operating under the Allegiant name while maintaining a significant operational presence in Minneapolis–St. Paul, which Allegiant identified as a key anchor city.
The deal brings together two leisure-focused airlines serving 22 million annual passengers, nearly 175 cities, and more than 650 routes, with a combined fleet of approximately 195 aircraft. Allegiant said the merger is expected to generate $140 million in annual synergies by year three and be accretive to earnings per share in the first year after closing. Sun Country’s diversified operations — including charter services and cargo flying for Amazon — will continue as part of the combined business.
Read the full announcement on PRNewswire.
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