Timeline and Status
Despite industry headwinds from high jet fuel prices, Allegiant Air remains on track with the acquisition. In a conference call with investors on April 30, 2026, Allegiant executives confirmed shareholders from both companies will vote on the $1.5 billion deal on May 8, with anticipated close on May 13. Regulators have already signed off on the transaction. The deal was initially announced in January 2026.
Deal Structure and Terms
Allegiant will acquire Sun Country in a cash and stock transaction valued at $18.89 per Sun Country share. Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each share owned, representing an 18.8 percent premium based on the 30-day volume-weighted average price at announcement. The $1.5 billion valuation includes $400 million in Sun Country debt. Upon closing, Allegiant shareholders would own approximately 67 percent of the combined company on a fully diluted basis, with Sun Country shareholders owning 33 percent.
Strategic Rationale and Network Benefits
The combination brings together complementary route networks, with Allegiant focusing on small and mid-sized localities and Sun Country serving larger cities. Together, the carriers will provide more than 650 routes and serve approximately 22 million passengers annually. Allegiant CEO Greg Anderson stated the companies are well-positioned to weather industry challenges, noting that the gap between efficient operators and others is widening.
Sun Country Brand Preservation
Sun Country employees are working to preserve the airline's heritage amid the merger. Three former and current Sun Country staffers—including an original flight attendant who worked for 39 years—created a book titled 'Minnesota's Phoenix' to document the airline's success story since its founding in 1982 by former Braniff International Airways crew members. Employees emphasized that Sun Country's identity lies in its people and corporate culture.
Industry Context
The merger progresses despite elevated jet fuel prices impacting the aviation industry. Allegiant has made schedule adjustments on long-range flights to reduce fuel consumption, though the delivery of new fuel-efficient Boeing 737 aircraft is expected to enable resumption of those routes. In the first quarter of 2026, Allegiant reported net income of $42.5 million on revenue of $732.4 million. 
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