Allegiant-Sun Country merger given early antitrust green light by US authorities
March 17, 2026
The United States Department of Justice (DOJ) Antitrust Division has granted early termination of the waiting period required by US law, clearing away a major obstacle for the proposed merger between Allegiant Air and Sun Country Airlines to proceed without further delay.
The completion of the transaction is expected to be completed by the end of 2026, with the two leisure-focused carriers operating as a single corporate entity.
Allegiant Air’s merger with Sun Country Airlines gets regulatory clearance
On 16 March, Allegiant Air and Sun Country Airlines announced that they had received notice of early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in connection with Allegiant’s previously announced proposed acquisition of Sun Country.
Receiving US antitrust clearance is an important step toward completing the combination of the two airlines, although it does not represent the completion of the merger process, with shareholder approval still required.
On 11 January, Las Vegas-based Allegiant Air and Minneapolis-based Sun Country announced their intention to merge, under which Allegiant would acquire Sun Country in a $1.5 billion cash-and-stock transaction.
This amount includes $400 million of Sun Country Airlines’ debt, to be taken on by the acquiring airline. Allegiant’s acquisition will mean respective shareholders own 67% and 33% of the combined company on a fully diluted basis.
Once finalised, the combined airline would create the leading leisure-focused airline in the US, operating regular and seasonal services to popular domestic and international leisure destinations across the United States, Central America, and the Caribbean.
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.”
The merger has some final stages to clear before it can proceed
The proposed transaction remains subject to other customary closing conditions, including approval from the US Department of Transportation (DOT) of an interim exemption application and the approval of the shareholders of each of Allegiant and Sun Country.
In light of recent developments, the transaction is expected to close in the second or third quarter of 2026.
“We are pleased to receive US antitrust clearance from the Department of Justice,” said Allegiant CEO Greg Anderson. “We remain confident that this combination will deliver meaningful benefits for our customers, team members, and the communities we serve.”
“Together, Allegiant and Sun Country will create a stronger leisure-focused airline, offering a broader network, more travel options, and increased long-term value creation for our shareholders,” he added.
Consolidation of the US leisure air travel market
The merger, once completed, will mark a major shift in the US leisure air travel market, with both carriers being leading players in their respective markets.
Once the merger is completed, the combined entity, which is expected to operate under the Allegiant brand and be led by Allegiant’s current CEO, Gregory C. Anderson, is set to carry around 22 million passengers per year and operate a dual fleet of Boeing and Airbus aircraft.
At the time the merger was announced, Allegiant said that through the deal being approved, it would be able to “more fully utilise” its 737 MAX fleet and, crucially, its order book for more of the type. Following the merger, it expects to fly around 195 aircraft, with 30 on order and an additional 80 options.
There is only minimal route overlap, with just two out of 656 combined routes. As such, the transaction faces low competitive risk and, as a result, received its early regulatory approval to proceed from the antitrust authorities.
The combined entity will hold about 2.5% of US domestic seat share, positioning it as a more resilient ultra-low-cost leisure player better able to compete with legacy carriers.
It will also introduce more international services from underserved secondary US markets and will add a further degree of diversified passenger flights and cargo operations to provide an element of immunity against economic cycles.
Synergies to be fully embraced following the merger
In a press release announcing the deal back in January, the two airlines stated that they expect to realise an estimated $140 million in annual synergies to result from the combination of their respective operations.
According to data from Cirium, Sun Country will deploy 18,000 seats in 2026, while Allegiant has just over 84,000 across its network.
From an operational standpoint, Allegiant hopes to leverage Sun Country’s precise management of seasonal trends.
That is, when vacation flying reduces over the leaner winter months, the newly merged company will continue to lean on charter and cargo demand to maintain steady revenue streams over such periods.
More about Allegiant Air and Sun Country Airlines
Founded in 1997, Allegiant currently serves 128 US airports on a scheduled basis as well as a range of charter destinations. Known for offering cheap fares on modern aircraft, the airline has become renowned for reliability and on-time performance.
According to Planespotter.net, the carrier operates a fleet of 125 aircraft, including 108 Airbus A320 family aircraft plus 17 Boeing 737 MAX 8200s. 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.
Founded in 1992, Sun Country serves a network of 105 regular and seasonal destinations, primarily from its main base at Minneapolis-Saint Paul International Airport (MSP) in Minnesota.
In addition to a fleet of 43 Boeing 737-800 and 737-900 aircraft on passenger services, plus one Boeing 737-800 in a 68-seat VIP configuration, the carrier also operates a fleet of 20 converted Boeing 737-800 freighters for Amazon Prime Air from its main cargo base at Cincinnati/Northern Kentucky International Airport (CVG).
Featured image: Allegiant Air
