Allegiant Air has officially completed its acquisition of Sun Country Airlines, creating a larger low-cost airline aimed at broadening affordable travel options for passengers. The deal, valued at approximately $1.5 billion including debt, received all necessary regulatory and shareholder approvals before closing.
This merger arrives at a challenging moment for budget airlines, which face increased financial pressures due to soaring jet fuel prices influenced by geopolitical tensions in the Middle East. The sharp fuel cost increase has driven higher fares and fees across the industry, disproportionately affecting low-cost carriers with limited capacity to absorb these expenses. Spirit Airlines' recent shutdown after decades in operation highlighted the sector’s fragility, as it struggled with heavy debt and cash-flow issues exacerbated by the surge in fuel prices.
Combining forces enables Allegiant and Sun Country to diversify revenue sources and expand their service offerings. Sun Country adds valuable cargo operations for Amazon and charter services supporting sports teams, casinos, and the U.S. Department of Defense, complementing Allegiant’s passenger flights. Together, the merged airline will operate close to 195 aircraft, serving nearly 175 cities and over 650 routes, particularly enhancing connectivity within smaller and mid-sized markets.
For the time being, both airlines will maintain separate operations, allowing travelers to continue booking and managing trips under the existing systems without interruption. The integration process is expected to take time, but eventually, the combined entity will operate under the Allegiant name with its headquarters in Las Vegas, while sustaining Minneapolis–St. Paul—Sun Country’s base—as a key hub.