Allegiant Acquires Sun Country in Cash-and-Stock Deal

Allegiant Travel Company (NASDAQ: ALGT) said on Jan. 11, 2026, that it will acquire Sun Country Airlines Holdings Inc. (NASDAQ: SNCY) in a cash-and-stock merger designed to expand the combined carrier’s leisure network and strengthen its financial profile for shareholders.

Deal Terms, Approvals, and Corporate Structure

Under a definitive merger agreement, Allegiant will acquire Sun Country in a transaction offering Sun Country shareholders 0.1557 Allegiant shares plus $4.10 in cash per share. This values Sun Country at $18.89 per share, a 19.8% premium to its Jan. 9 close and an 18.8% premium to its 30-day volume-weighted average price, implying an enterprise value of about $1.5 billion including $0.4 billion of net debt.

Both companies’ boards unanimously approved the deal, which is expected to close in the second half of 2026, subject to U.S. federal antitrust clearance, other regulatory approvals, and shareholder votes. Allegiant will remain the publicly held parent company, and the combined carrier will operate under the Allegiant name from its Las Vegas headquarters. Post-close ownership will be roughly 67% Allegiant shareholders and 33% Sun Country shareholders on a fully diluted basis. The companies also commit to maintaining a significant presence in Minneapolis–St. Paul, Sun Country’s base.

The companies plan to file a registration statement on Form S-4 and a joint proxy statement/prospectus with the SEC. Sun Country President and CEO Jude Bricker said, “Importantly, we believe this transaction delivers significant value to Sun Country shareholders and an opportunity to continue to benefit from our growth plans as a combined company.”

An investor conference call and webcast are scheduled for Jan. 12, 2026, accessible via Allegiant’s investor relations website.

Network, Fleet, Financial Targets, and Customer Impact

The combined airline will serve about 22 million customers annually across nearly 175 cities and more than 650 routes—551 operated by Allegiant and 105 by Sun Country. It is expected to operate roughly 195 aircraft at closing, with 30 on order and 80 options. Sun Country adds access to 18 international destinations in Mexico, Central America, Canada, and the Caribbean.

The merged fleet will include Airbus and Boeing aircraft, alongside Allegiant’s next-generation 737 MAX fleet and order book. Management plans to deploy aircraft where they provide the greatest operational and financial benefit, capturing fuel efficiency and capacity gains from the MAX fleet.

Allegiant expects to realize $140 million in annual synergies within three years of closing. The transaction is projected to be accretive to earnings per share one year after closing, with the combined company targeting Net Adjusted Debt to EBITDAR below 3.0x at closing. These targets support management’s plan to create a more adaptable, resilient leisure carrier with flexible capacity and diversified revenue streams.

Sun Country contributes long-term cargo and charter contracts, including a multi-year cargo agreement with Amazon Prime Air and charters for casinos, Major League Soccer, collegiate teams, and the U.S. Department of Defense. Allegiant brings its charter operations and a high ancillary-revenue model, broadening revenue across scheduled, charter, and cargo businesses.

The companies said there will be no immediate changes to ticketing, flight schedules, travel experience, or the Sun Country brand while each airline continues to operate separately pending issuance of a single Federal Aviation Administration (FAA) operating certificate. The combined loyalty program will merge Sun Country’s more than 2 million members with Allegiant’s 21 million members.

Company materials say the merger will create new roles, advancement and cross-training opportunities, and more year-round flying for pilots, crews, and operations personnel. Both carriers emphasize a shared culture focused on safety, hospitality, and affordable leisure travel.