Allegiant to merge with Sun Country Airlines: What does this mean for travellers?
January 12, 2026
Low-cost carriers Allegiant Air and Sun Country Airlines announced on Sunday that they would be merging. In a joint release, the airlines confirmed that Allegiant would acquire Sun Country in a transaction worth $1.5 billion.
Allegiant’s acquisition will mean respective shareholders own 67% and 33% of the combined company “on a fully diluted basis.”
The plan with the merger is to create “a leading leisure-focused U.S. airline,” highlighting the continued attention on a tourism-driven network that is central to both of their current operations.
Sun Country is based out of Minneapolis–Saint Paul International Airport, while Allegiant has several operating bases across the United States. It is headquartered in Las Vegas, as the combined company will be.
Sun Country and Allegiant to create a more resilient and agile airline
In their statement, the companies highlighted their “financially strong” positions in the United States and believe that their merger will “create benefits for customers, communities, employees and partners.” Specifically, the airline will draw on:
- Complementary networks with more than 650 routes combining Allegiant’s 551 and Sun Country’s 105. This will revolve around a “continued focus on underserved markets across the U.S.”
- Expanded international service thanks to Sun Country’s Mexican, Central American, Canadian and Caribbean networks.
- Sun Country’s cargo fleet of 20 Boeing 737 freighters to counter seasonality in key leisure markets, as well as their combined existing charter operations.
Gregory C. Anderson, Allegiant’s CEO, described the news as an “exciting next chapter” in their shared mission, underlining the company’s admiration for Sun Country and its “well-run, flexible and diversified business model” that generates strong margins.
“With our combined strengths– including operational excellence, consistent profitability, strong balance sheets, and fleet ownership, we will create an even more resilient and agile airline that delivers greater value,” he continued.
Allegiant has grown considerably in the last few years. The number of flights operated was up 11% in 2025 year-on-year, and 102% since 2015.
Sun Country and Allegiant: Complementary route networks and markets
According to data from aviation analytics firm Cirium, the two companies only overlap on flights between Appleton and Fort Myers. The majority of Sun Country’s seats are concentrated in Minneapolis, while Allegiant is a little more spread out.
The airlines’ primary gateways by seats are shown below based on information from Cirium. It is worth noting that Sun Country’s fleet comprises just 64 aircraft (of which 44 are passenger jets), while Allegiant has just short of 130 jets. This is reflected in seats on offer: Sun Country will deploy 18,000 seats in 2026, while Allegiant has just over 84,000.
What does the Sun Country-Allegiant merger mean for travellers?
According to information from both airlines, the combined carrier will continue the focus on Allegiant’s mid-sized markets, connecting leisure destinations to existing hubs. Minneapolis will be integrated into this hub network.
Additional growth powered by the tie-up with “popular vacation spots” is also to be expected. The focus will continue to remain on “underserved markets across the U.S.,” they said.
Sun Country Airlines currently flies to non-US destinations like Cancún, Aruba, Punta Cana and Puerto Vallarta. This base will encourage further international flying for the new carrier. It will also provide benefits to existing and future loyalty program members, the carrier promises.
“Adding Sun Country’s more than 2 million members to Allegiant’s 21 million member base further enhances the relevance of the combined program, driving greater customer rewards.”
From an operational standpoint, Allegiant hopes to leverage Sun Country’s management of seasonal trends; when vacation flying reduces, the company will continue to lean on charter and cargo demand instead.
Finally, Allegiant is also convinced that thanks to the merger, it will be able to “more fully utilise” its 737 MAX fleet and, crucially, the order book. It expects to fly around 195 aircraft, with 30 on order and an additional 80 options.
Featured image: Ryan / stock.adobe.com
