LAS VEGAS, Nev.- Allegiant says its planned acquisition of a low-cost carrier has cleared a regulatory hurdle.

The Las Vegas-based airline announced on Monday that it had received approval for early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The move means both the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) have reviewed the deal and found no conflicts with antitrust laws.

Allegiant announced in January it intended to buy Sun Country Airlines in a $1.5 billion deal.

Allegiant is one of four airlines that serve Lehigh Valley International Airport (ABE), alongside Delta, United and American. But Allegiant offers more nonstop destinations from ABE than the other three carriers combined.

Allegiant operates out of over 100 airports across the United States but does not currently offer international destinations. That will change if the merger goes through. 

Sun Country Airlines is based in Minneapolis, Minn. The carrier offers nonstop destinations across the U.S., as well as Mexico, Central America, and the Caribbean.

The proposed transaction remains subject to other customary closing conditions, including approval from the U.S. Department of Transportation (DOT) and the shareholders of both airlines.

The transaction is now expected to close in the second or third quarter of 2026. Once that happens, Allegiant will continue to be the publicly held parent company, and the combined company will continue under the Allegiant name.