Allegiant to buy Sun Country Airlines for $1.5 billion

• The transaction values Sun Country Airlines at $1.5 billion including debt
• Both companies operate in the low-cost carrier segment of the U.S. airline industry
• The deal was announced on January 11, 2026, and represents a significant consolidation move in the budget airline market

Allegiant to Acquire Sun Country Airlines for $1.5 Billion

Key Transaction Details:

Low-cost carrier Allegiant has agreed to acquire Sun Country Airlines in a deal valued at approximately $1.5 billion, including debt. The companies announced the transaction on Sunday, January 11, 2026.

Companies Involved:

• Allegiant: The acquiring low-cost airline
• Sun Country Airlines: Based in Minneapolis, Minnesota, operating out of Minneapolis-Saint Paul International Airport

Market Implications:

This acquisition represents significant consolidation within the low-cost airline sector. The deal combines two budget carriers, potentially creating a stronger competitor in the value airline market segment. The transaction could lead to:

• Enhanced route networks and operational scale for the combined entity
• Increased market share in the budget airline segment
• Potential cost synergies through consolidated operations
• Greater competitive positioning against other low-cost carriers

Transaction Value:

The $1.5 billion enterprise value includes Sun Country's existing debt obligations, indicating a leveraged acquisition structure typical in airline industry consolidations.

Strategic Context:

The merger occurs amid ongoing dynamics in the U.S. airline industry, where carriers continue seeking scale advantages and operational efficiencies. Budget airlines have been particularly active in pursuing growth strategies through both organic expansion and acquisitions to compete effectively against legacy carriers and maintain profitability in a competitive market.

The deal is subject to standard regulatory approvals and closing conditions typical for airline industry transactions. Further details regarding the specific terms, integration timeline, and operational plans were not disclosed in the initial announcement.