Allegiant will acquire Sun Country in a cash-and-stock deal valued at about $1.5 billion, creating one of the largest leisure-focused airlines in the U.S.
The combined airline promises more routes, more nonstop vacation flights, and expanded international service, particularly from smaller and mid-sized cities.
Consumers could see more choices and potentially lower fares, though the merger will face regulatory scrutiny before closing in late 2026.
Allegiant Air and Sun Country Airlines have agreed to merge in a deal designed to reshape the low-cost leisure travel market and expand affordable flight options for millions of travelers.
Under the definitive agreement, Allegiant will acquire Sun Country Airlines in a transaction that values Sun Country at approximately $18.89 per share. Once the deal closes, Allegiant shareholders will own about 67% of the combined company, with Sun Country shareholders holding the remaining 33%.
Allegiant will remain the publicly traded parent, and the merged airline will continue operating under the Allegiant name.
What the merger means for travelers
For consumers, the airlines say the biggest change will be more destinations and better connectivity—especially for leisure travelers flying from smaller or underserved cities.
Together, the two carriers will operate more than 650 routes, combining Allegiant’s focus on small and mid-sized markets with Sun Country’s strength in larger metro areas such as Minneapolis–St. Paul. The merger is expected to expand nonstop service to popular vacation destinations and open up more international options, including flights to Mexico, Central America, Canada, and the Caribbean.
Allegiant customers, in particular, stand to gain access to 18 international destinations that are currently part of Sun Country’s network. The airlines say the combined route map will make it easier for travelers to reach vacation spots without connecting through major hubs.
Reliability, scheduling, and loyalty perks
The companies also emphasize operational improvements. By integrating scheduling and fleet management, the combined airline says it will be better able to match flight capacity to peak travel seasons, potentially improving on-time performance and reducing disruptions.
Another consumer-facing change will be loyalty programs. The merged airline plans to combine Allegiant’s program—currently with about 21 million members—with Sun Country’s more than 2 million members. Executives say this could lead to expanded rewards, broader benefits, and more ways for frequent flyers to earn and redeem points.
Will fares go up or down?
Both airlines position themselves as low-cost carriers focused on value, and executives stress that the merger’s goal is to make leisure travel more affordable and accessible, not more expensive. The companies expect to generate $140 million in annual synergies within three years, largely by offering more routes and improving efficiency.
Still, as with most airline mergers, consumer advocates and regulators are likely to scrutinize whether reduced competition on certain routes could eventually lead to higher prices. Federal antitrust regulators will review the deal before it can close.
For the near future, passengers should not expect immediate changes. Allegiant and Sun Country will continue to operate separately until they receive a single operating certificate from the Federal Aviation Administration. Ticketing, schedules, and the Sun Country brand will remain unchanged during the integration period.