Las Vegas-based Allegiant Air has reached an agreement to purchase Sun Country Airlines for $1.5 billion.
The merger, if approved by federal antitrust regulators, would bring together the Minneapolis-centric network of Sun Country with Allegiant's broader leisure network, combining Allegiant's 551 routes with Sun Country's 105.
It would also turn Allegiant into an international carrier with the addition of Sun Country's 18 routes to destinations in Canada, Mexico, Central America and the Caribbean.
In addition, Allegiant would acquire Sun Country's sizeable charter and cargo operations. Sun Country spent 2025 focusing on growing its cargo network, which includes a multiyear contract with Amazon Prime Air.
"We have long admired Sun Country for their well-run, flexible and diversified business model that optimizes for year-round utilization and strong margins," Allegiant CEO Greg Anderson said. "Together, our complementary networks will expand our reach to more vacation destinations including international locations. With our combined strengths -- including operational excellence, consistent profitability, strong balance sheets and fleet ownership, we will create an even more resilient and agile airline that delivers greater value to travelers, partners, team members, shareholders and the communities we serve."
Anderson would be CEO of the combined company. Sun Country CEO Jude Bricker would join the Allegiant board of directors along with two other Sun Country members, expanding the Allegiant board to 11 members. The carriers are hoping to close the deal in the second half of this year, though they would operate separately until attaining a single operating certificate from the FAA.
Allegiant expects the merger to bring annual synergies of $140 million within three years following the integration, mostly driven by its ability to offer more flying options. Cost savings would also be achieved due to increased scale.
The $1.5 billion purchase price amounts to $18.89 per Sun Country share, 19.8% above the airline's Jan. 9 closing price. Sun Country shares jumped upon news of the closure and were up more than 11% in mid-morning trading.
In the merger announcement, the airlines stressed similarities in their business models, including their leisure focus and flexible operating model, which involves aggressive scaling of capacity depending on seasonality and days of the week.
They also said the merger would bring together complementary route networks. While both carriers emphasize vacation destinations, Allegiant has a particular focus on small and midsize cities, and on secondary airports in larger markets. Sun Country's route map is dominated by Minneapolis, with a large portion of Minneapolis flights connecting to warm-weather locales.
Allegiant said it would continue to have a significant presence in Minneapolis, using it as an anchor city.
Allegiant has a fleet of 121 aircraft split between Boeing 737 and A320-series planes. Sun Country is flying 65 Boeing 737s, including 45 passenger aircraft and 20 cargo planes.