Two low-cost airlines are merging in $1.5 billion deal

In a archetypal of specified deals since the commencement of the year, Las Vegas-based Allegiant Air announced plans to acquisition rival Sun Country Airlines for $1.5 cardinal and signifier a azygous low-cost airline.

The woody includes some currency and banal and takes connected astir $400 cardinal of the Minneapolis-based Sun Country's debt. As portion of the woody approved by the boards of some airlines, Sun Country shareholders volition person $18.89 of each share, which will, successful turn, beryllium comprised of $4.10 successful currency and a 0.1557 stock successful Allegiant stock.

Provided the transaction is approved by regulators, the merger volition beryllium completed by the extremity of 2026 and make a combined hose successful which Sun Country shareholders clasp 33% and Allegiant Travel shareholders person a 67% stake.

Launched successful 1997 arsenic an aboriginal illustration of the low-cost model, Allegiant Air built a marketplace of serving cities with postulation excessively debased for mainstream airlines.

Although its website states that it presently serves 117 destinations crossed the U.S., Allegiant precocious pulled retired of LAX airport past autumn aft cutting its past flights into the metropolis from Cincinnati and Bellingham implicit what it classified arsenic "long-term strategical goals" and "flexible concern value."

Sun Country launched retired of MSP successful 1982 and ran a akin exemplary of flying from smaller markets to assorted destinations successful Florida, Mexico, and the Caribbean, arsenic good arsenic assorted routes betwixt secondary cities connected the U.S. mainland.

Related: Low-cost hose leaves planetary airport, cancels each flights

"We person agelong admired Sun Country for their well-run, flexible, and diversified concern exemplary that optimizes for year-round utilization and beardown margins," Allegiant CEO Gregory C. Anderson said successful a statement. "Together, our complementary networks volition grow our scope to much abrogation destinations including planetary locations."

The woody comes arsenic each low-cost airlines conflict with a marketplace of precocious costs and contention for the aforesaid routes. Still, Sun Country has been doing comparatively good — successful October 2025, it reported its 3rd profitable 4th with gross of $255.5 million.

Stocks of some airlines roseate successful pre-market trading upon the quality of the merger connected Sunday evening.

Travel news:

• Major hose launches astonishing formation betwixt Las Vegas and Paris

• United Airlines CEO gives stark informing connected Olympic Games

• The highest rooftop successful Barcelona is successful a astonishing place

• US authorities issues abrupt informing connected Switzerland travel