Allegiant Travel Co. completed its acquisition of Sun Country Airlines on Wednesday, May 13, 2026, creating a combined low-cost carrier group. The deal, valued at approximately $2 billion, was first announced in January 2026 and received regulatory approval in April.
In a statement following the closing, Allegiant CEO Greg Anderson said the company will continue to focus on its low-cost model despite industry challenges such as rising jet fuel prices and increased competition from major carriers. 'We believe there is a strong market for affordable air travel, and this acquisition allows us to expand our network while keeping fares low,' Anderson said.
The combined airline will operate under the Allegiant Air brand, with Sun Country's operations integrated over the next 12 months. The merger is expected to generate cost savings of $100 million annually through fleet optimization and route synergies, according to company filings.
Industry analysts have expressed mixed views on the deal, with some questioning whether the low-cost model can sustain profitability amid fuel price volatility. However, Anderson expressed confidence, citing Allegiant's history of operational efficiency and Sun Country's strong leisure travel routes.
As of May 14, 2026, Allegiant shares were trading at $145.32, up 2.1% from the previous close, reflecting investor optimism about the merger's potential.
