Allegiant Air, a leisure-oriented carrier based in Las Vegas, Nevada, has announced the acquisition of Sun Country Airlines for $1.5 billion in cash and stock. This amount includes $400 million of Sun Country Airlines’ debt, to be taken on by the acquiring airline.The deal, which was announced on January 11, 2026, has already been approved by the boards of directors of both airlines and is expected to be completed by the end of 2026, provided it doesn’t meet any objection from the competition authorities.The 0.1557 shares of Allegiant common stock and $4.10 in cash that Allegiant is offering to Sun Country shareholders represents has an implied value of $18.89, a premium of nearly 20% over the $15.77 closing share price of the airline’s stock on January 9, 2026
the two airlines have similar business models and largely complementary route networks.
Allegiant, known for its culture of cost consciousness, focuses on linking multiple secondary cities throughout the United States to warm-weather destinations in Florida and the Caribbean. ‘Sun-and-sand’ destinations are also a core market for Sun Country Airlines, although the carrier serves also a broad range of destinations throughout the US from its base at Minneapolis-Saint Paul International Airport (MSP).