Home » AIRLINE NEWS » Las Vegas Joins Minneapolis, Fort Lauderdale, and More in Allegiant and Sun Country Airlines’ $1.5 Billion Merger to Reshape U.S. Leisure Travel
Published on
January 12, 2026
By: Paramita Sarkar
On January 11, 2026, Allegiant Travel Company (NASDAQ: ALGT) and Sun Country Airlines (NASDAQ: SNCY) revealed their definitive merger agreement, a strategic move set to redefine the U.S. leisure travel landscape. The $1.5 billion transaction, which includes the assumption of $400 million in net debt, combines two prominent players in the American aviation sector, each bringing a unique business model to the table. By merging Allegiant’s point-to-point service model with Sun Country’s hub-and-spoke network and cargo operations, the deal is poised to unlock new opportunities for passengers, fleet expansion, and global reach.
$1.5 Billion Merger with Significant Financial Implications
Under the terms of the merger, Allegiant will acquire Sun Country in a cash-and-stock transaction. Specifically, Sun Country shareholders will receive $4.10 in cash and 0.1557 shares of Allegiant common stock for each share of Sun Country stock they hold. This acquisition implies a value of $18.89 per share for Sun Country, representing a nearly 20% premium over the company’s stock price as of January 9, 2026. Upon the deal’s closure, Allegiant’s shareholders will own approximately 67% of the combined entity, while Sun Country’s shareholders will control the remaining 33%.
The merger not only brings together two strong brands but also enhances the combined company’s position in the U.S. leisure travel market. The new company will serve an estimated 22 million passengers annually, combining Allegiant’s extensive domestic reach with Sun Country’s international footprint, providing travelers with more options and greater convenience.
Expansion of Network and Fleet Across Key Markets
One of the most significant outcomes of the merger will be the expansion of the airlines’ network and fleet. The combined airline will operate in nearly 175 cities, with over 650 routes, including 551 from Allegiant and 105 from Sun Country. Notably, Allegiant’s existing domestic routes will be complemented by Sun Country’s well-established international service, covering 18 destinations across Mexico, Central America, the Caribbean, and Canada.
The fleet of the combined airline will feature approximately 195 aircraft, including Allegiant’s Airbus jets and Boeing 737 MAX planes, as well as Sun Country’s Boeing 737-800s. This increased fleet capacity will enable the company to offer more frequent flights and serve a broader geographic area.
Enhanced Customer Loyalty and Service Experience
As part of the merger, Allegiant and Sun Country will integrate their loyalty programs, creating a powerful combined rewards system. Sun Country’s 2 million loyalty members will join Allegiant’s 21 million members, forming a 23-million-member ecosystem. This large and diverse customer base will help the combined company better cater to travelers seeking flexible, personalized services.
Until the merger’s completion in the second half of 2026, both airlines will continue to operate independently. Customers will be able to book flights and earn or redeem loyalty points according to each airline’s separate platforms.
The Leadership: A New Era of Airline Operations
The combined company will be headquartered in Las Vegas, Allegiant’s base of operations, although a significant presence will be maintained in Minneapolis-St. Paul, Sun Country’s historic home. Allegiant CEO Gregory C. Anderson will lead the new company, while Sun Country CEO Jude Bricker is expected to join Allegiant’s Board of Directors, ensuring continued collaboration between the two airlines.
The merger also expands the scope of revenue diversification for the combined company. Sun Country’s cargo operations, including its partnership with Amazon, and its extensive charter business, will provide stability during off-peak leisure seasons, ensuring a steady revenue stream.
Timeline for Regulatory Review and Full Integration
The merger is currently undergoing regulatory review, which is expected to continue through early 2026. The companies anticipate the deal will officially close in the second half of 2026. Following the transaction’s completion, a full integration process will begin, with the airlines working to merge fleets, crews, and operational systems over a period of 12 to 24 months.
During this time, customers will continue to use separate platforms for bookings and loyalty rewards. However, once integration is completed, the companies plan to introduce codesharing, allowing passengers to book Allegiant flights on Sun Country’s website and vice versa.
The Impact: Strengthening Key Hubs and Increasing Flight Frequencies
The merger will also lead to strategic shifts in hub operations, with the combined airline focusing on three primary geographic strongholds. These hubs will each serve a distinct purpose in the company’s broader strategy.
Las Vegas (LAS) – Allegiant’s home base, Las Vegas will serve as the corporate and operational center for the new company. The merger will enable higher-capacity service between major West Coast cities and Vegas, using Sun Country’s fleet of Boeing 737s for shuttle-style service.Minneapolis-St. Paul (MSP) – While Sun Country will no longer operate independently from MSP, the merger ensures the continued importance of this hub. Allegiant plans to use MSP as a connecting point, allowing small-market passengers from cities like Appleton and Fargo to access Sun Country’s international destinations for the first time.Fort Lauderdale (FLL) – Sun Country’s growing presence in South Florida, coupled with Allegiant’s dominance in Terminal 1, will provide significant opportunities for expansion. The consolidation of gate operations at FLL could lead to the creation of a massive discount-leisure terminal, positioning Fort Lauderdale as a key hub for the combined airline.The Effect on Flight Frequencies and Regional Growth
The merger will lead to increased flight frequencies in key markets, particularly during the busy leisure travel seasons. Allegiant and Sun Country plan to shift aircraft and crews to optimize aircraft utilization year-round, focusing on high-demand routes. For example, Allegiant’s high-demand summer routes in the Southeast and West will benefit from increased aircraft availability during the winter months, which are typically Sun Country’s peak season.
Additionally, travelers from small-market cities serviced by Allegiant will gain access to new international destinations through MSP, thanks to the expanded Sun Country network. Allegiant’s established domestic routes will be enhanced with additional international offerings, further boosting the overall network.
The Regional Winners: Key Cities Set to Benefit
Several cities are poised to see direct benefits from the merger, with new routes and increased capacity expected in the following regions:
Minneapolis (MSP) – New nonstop routes to Allegiant’s network of small-market cities, such as Asheville and Bentonville.South Florida (FLL/PBI) – Increased capacity, including the deployment of Sun Country’s larger Boeing 737-800s to meet high-demand Florida routes.Cincinnati (CVG) – The merger will leverage Sun Country’s new base, which opened in January 2026, to expand East Coast leisure services.International (Mexico/Caribbean) – Allegiant passengers from more than 100 small U.S. cities will now be able to access Sun Country’s international gateway, opening up more travel options to Mexico and the Caribbean.A New Era in U.S. Leisure Travel
The merger between Allegiant and Sun Country Airlines represents a bold step forward for the U.S. leisure travel sector, creating a powerful airline capable of offering more destinations, better services, and enhanced loyalty programs. With the combined reach of over 650 routes and 195 aircraft, the new entity is positioned to meet the growing demand for leisure travel both domestically and internationally. The strategic integration of hubs, fleets, and operations promises to deliver a more efficient and expansive service network, benefiting travelers across the U.S. and beyond. As the merger moves forward, both airlines are poised to reshape the competitive landscape in the American aviation industry.
Image: Sun Country Airlines
