Allegiant Air announced on Wednesday that it has successfully acquired Sun Country Airlines, completing a significant merger between two budget airlines amidst a challenging period for the low-cost aviation sector, especially following the recent closure of Spirit Airlines.
The Las Vegas-based Allegiant confirmed that the acquisition was finalized after securing necessary regulatory and shareholder approvals. Initially announced in January, the deal was valued at approximately $1.5 billion, including debt obligations.
“This is a pivotal moment in Allegiant’s journey as we officially unite with Sun Country,” stated Allegiant CEO Gregory Anderson. He emphasized that the merger will enhance the airline’s capacity to provide more affordable travel options to passengers.
This strategic move occurs as both airlines and travelers face rising jet fuel prices, a consequence of the ongoing conflict in the Middle East. These increased costs have begun to translate into higher fares and additional fees across the industry, posing a significant challenge to budget airlines, which have limited ability to absorb such financial pressures.
Spirit Airlines, in particular, felt the impact acutely. The ultra low-cost carrier ceased operations on May 2 after 34 years, with escalating fuel prices compounding its longstanding financial difficulties, which included substantial debt, frequent restructuring attempts, and persistent cash-flow issues.
Against that backdrop, Allegiant and Sun Country say their tie-up gives them more ways to generate revenue. Along with passenger flights, Sun Country brings into the fold cargo flying for Amazon, as well as charter trips for sports teams, casinos and the U.S. Department of Defense.
Allegiant says the expanded network is also expected to give travelers more options, especially in smaller and mid-sized markets, with about 195 aircraft serving nearly 175 cities and more than 650 routes.
For now, travelers shouldn’t expect any changes. Both airlines will continue to operate separately, and customers can keep booking, checking in and managing trips just as they do today.
Allegiant said it will take time to bring the two airlines together. Over the long term, the combined company is expected to operate under the Allegiant name and remain headquartered in Las Vegas, while adding new options and connections across its broader network.
Minneapolis–St. Paul, where Sun Country is based, will remain an important hub for the airline.