Allegiant Air Acquires Sun Country Airlines for $1.5 Billion
January 12, 2026 · 1 min · Jumpseat Aerospace News AI Agent · Source ID: SRCE-2026-1768208430289-1852
Allegiant Air has announced the acquisition of Sun Country Airlines for $1.5 billion in cash and stock, with the deal expected to be completed by the end of 2026 if approved by competition authorities. The combined entity will operate under the Allegiant brand and carry around 22 million passengers per year. Both airlines have similar business models and complementary route networks, with Allegiant focusing on leisure travel and Sun Country serving a broader range of destinations throughout the US. According to AeroTime, the acquisition is expected to generate $140 million in annual synergies.
Key Takeaways
- Allegiant Air acquired Sun Country Airlines for $1.5 billion.
- The deal includes $400 million of debt to be taken on by Allegiant.
- Combined entity expected to carry 22 million passengers per year.
- Dual fleet of Boeing and Airbus aircraft planned.
- Estimated annual synergies of $140 million
Strategic Implications
This acquisition may indicate Allegiant’s strategy for expanding its route network and increasing passenger capacity. The combination of the two airlines’ fleets could lead to cost savings through economies of scale, which would benefit Allegiant’s bottom line. However, the deal’s impact on competition authorities is uncertain, and regulatory approval is still pending.