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Allegiant and Sun Country Airlines to Combine, Creating a Leading U.S. Airline

Allegiant (ALGT) | January 10, 2026

By Victor Perez

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Allegiant and Sun Country Airlines announced a definitive merger agreement.

The merger will create a leading leisure-focused U.S. airline with expanded service to popular vacation destinations.

Shareholders will own approximately 67% and 33% of the combined company, respectively.

Merger Details

Allegiant to acquire Sun Country in a cash and stock transaction at an implied value of $18.89 per share.

Premium Offer

Sun Country shareholders to receive 0.1557 shares of Allegiant common stock and $4.10 in cash per Sun Country share, representing a premium of 19.8% over the closing share price.

Value

The transaction values Sun Country at approximately $1.5 billion, including net debt.

Combined Strengths

The merger aims to create a more resilient and agile airline that delivers greater value to travelers and stakeholders.

  • The merger will result in expanded service to more vacation destinations in the U.S. and internationally.
  • The combined airline is expected to be adaptable and resilient, with the ability to respond quickly to market changes and customer needs.

The merger between Allegiant and Sun Country Airlines is set to enhance service offerings and create a stronger, more competitive airline in the leisure travel sector.