Two underdogs in the airline industry are joining forces. Allegiant announced Sunday it will acquire Sun Country Airlines for $1.5 billion, creating a combined leisure carrier to compete against Delta, American, United and Southwest.
Sun Country shareholders will receive $18.89 per share, a 20% premium over Friday’s closing price. Allegiant shareholders will own 67% of the combined company, with Sun Country shareholders holding 33%. The deal brings together two complementary networks: Allegiant operates from small and mid-sized cities, while Sun Country flies from larger hubs like Minneapolis. Together, they’ll serve 22 million annual passengers across 175 cities with over 650 routes and 195 aircraft.
The four major U.S. carriers — Delta, American, United and Southwest — control roughly 70 percent of the domestic market, making it tough for smaller players to compete alone. The deal is expected to close in the second half of 2026 pending regulatory approval.
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