Allegiant Travel Company has finalized its $1.5 billion purchase of Sun Country Airlines. This move brings two popular low-cost carriers together under one owner. The deal closed on May 13, 2026, and it promises to reshape leisure travel in the United States.
Key Details of the Deal
Allegiant announced the acquisition back on January 11, 2026. It was a mix of cash and stock. Sun Country shareholders got $4.10 in cash plus 0.1557 shares of Allegiant for each of their shares. This worked out to about $18.89 per Sun Country share. That price sat 19.8% above Sun Country’s closing price of $15.77 on January 9.
Shareholders from both companies gave their okay on May 8, 2026. The U.S. Department of Transportation approved an interim exemption on April 15. This lets the airlines keep running on their own until they get a single operating certificate from the Federal Aviation Administration. Sun Country’s stock stopped trading on Nasdaq right after the close on May 13. It will soon be delisted from the exchange and removed from SEC records. Allegiant keeps trading as ALGT.
How Operations Will Work for Now
Travelers won’t notice big changes right away. Both airlines will fly under their own brands. Schedules, routes, booking sites, and loyalty programs stay the same. You can still book on allegiant.com or suncountry.com. Allegiant’s Allways Rewards and Sun Country Rewards run as before.
Minneapolis-St. Paul stays a main hub for Sun Country. Las Vegas remains Allegiant’s home base. The companies plan to fully merge operations once the FAA gives the green light. They expect that single certificate in about 14 months. At that point, everything shifts under the Allegiant name. Sun Country’s brand will fade out over time.
Bigger Network and Fleet
The merger builds a strong player in leisure travel. Together, they serve nearly 175 cities with more than 650 routes. The fleet grows to 195 aircraft. They carry about 22 million passengers each year. This includes 18 spots outside the U.S., like places in Mexico, Central America, Canada, and the Caribbean.
Allegiant brings 551 routes to the table. Sun Country adds 105. The mix covers small and midsize towns plus top vacation spots. It gives people easier access to affordable trips from local airports.
Leadership Changes
Gregory C. Anderson stays on as CEO of the combined company. Robert Neal serves as president and chief financial officer. Three new board members join: Jude Bricker, Jennifer Vogel, and Thomas C. Kennedy. Bricker, who led Sun Country before, now advises the CEO. Sun Country’s old board stepped down after the deal.
Maurice J. Gallagher, Allegiant’s founder and board chair, called it a big win. Anderson said it marks a key moment. He noted how the new setup expands cheap, reliable travel options.
Financial Upsides and New Business Lines
Leaders expect $140 million in yearly savings within three years. These come from better buying power, fleet tweaks, and network growth. The deal should boost earnings per share in the first full year after closing.
Sun Country adds fresh revenue sources. It includes cargo flights, like work for Amazon, and charters for sports teams, casinos, and the U.S. Department of Defense. Allegiant focused more on passenger leisure routes before. This mix strengthens the whole operation.
There was a one-time cost of $80.4 million from a Tax Receivable Agreement. Still, the long-term gains look solid.
Place in the Airline World
The combined group eyes a spot as a top low-cost leisure carrier. It might rank eighth by routes and cities served. Official lists from the FAA and DOT will update after full integration. The network spreads wide, not tied to one big airport. Las Vegas anchors Allegiant’s style, while Minneapolis-St. Paul boosts the Midwest reach.
For now, Allegiant owns both but runs them apart. This keeps flights smooth during the switch. Full unity waits on that FAA certificate. The result pairs a huge route map with cargo and charters, all under one roof soon.
Frequently Asked Questions
When did Allegiant complete the purchase of Sun Country Airlines?
The deal closed on May 13, 2026, after shareholder approval and regulatory nods.
Will travelers see changes to flights or bookings soon?
No big changes right away—both airlines keep their own brands, routes, and booking sites until full merger.
What does the merger add to Allegiant’s network?
It creates nearly 175 cities served, over 650 routes, and a fleet of 195 aircraft for more leisure travel options.
Who leads the combined company?
Gregory C. Anderson remains CEO, with Robert Neal as president and CFO, plus new board members.
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