Allegiant and Sun Country Merge, Forming Top U.S. Leisure Airline

Allegiant to Acquire Sun Country Airlines in $1.5 Billion Deal, Forging a Leisure Travel Powerhouse

LAS VEGAS and MINNEAPOLIS, Jan. 11, 2026 – Allegiant Travel Company (NASDAQ: ALGT) and Sun Country Airlines (NASDAQ: SNCY) today announced a definitive merger agreement that will see Allegiant acquire Sun Country in a cash and stock transaction valued at approximately $1.5 billion. The deal, which represents a significant consolidation within the U.S. leisure airline sector, aims to create a more formidable competitor by combining complementary route networks, diversified fleets, and expanded customer offerings.

Under the terms of the agreement, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country share. This offers a premium of 19.8% over Sun Country’s closing share price on January 9, 2026, and 18.8% based on its 30-day volume-weighted average price. Upon closing, Allegiant shareholders are expected to own approximately 67% of the combined entity, with Sun Country shareholders holding roughly 33% on a fully diluted basis. The transaction also accounts for Sun Country’s approximate $0.4 billion in net debt.

The merger is poised to create one of the most adaptable and resilient airline models in the industry, capable of swift responses to evolving market dynamics, passenger demand, and the needs of charter and cargo partners. This strategic combination of two financially robust leisure carriers is anticipated to yield substantial benefits for customers, communities, employees, and partners through enhanced stability, expanded opportunities, and continued investment in innovation.

“This combination marks an exciting new chapter in our shared mission to deliver affordable, reliable, and convenient service from underserved communities to premier leisure destinations,” said Gregory C. Anderson, CEO of Allegiant. “We have long admired Sun Country’s efficient, flexible, and diversified business model, which optimizes for year-round utilization and strong margins. Together, our complementary networks will significantly broaden our reach to more vacation destinations, including international locations. Our combined strengths in operational excellence, consistent profitability, robust balance sheets, and fleet ownership will forge an even more resilient and agile airline, delivering greater value to travelers, partners, team members, shareholders, and the communities we serve.”

Jude Bricker, President & CEO of Sun Country, added, “Over Sun Country’s 43-year history, we’ve established ourselves as a respected low-cost leisure airline with a distinctive business model serving scheduled service, charter passengers, and cargo. Today, we embark on an exciting next step by joining Allegiant to form a leading leisure travel company in the U.S. Both organizations are deeply committed to customer-centricity and delivering affordable travel experiences without compromising quality. We believe this transaction delivers substantial value to Sun Country shareholders and provides an opportunity to continue benefiting from our growth trajectory as a combined entity.”

**Synergies and Strategic Advantages:**

The combined airline is projected to serve approximately 22 million annual customers across nearly 175 cities, operating more than 650 routes with a fleet of over 195 aircraft. Key strategic advantages include:

* **Expanded Network and Destinations:** The integration of complementary route networks will enhance service to popular vacation spots and open new international travel opportunities. Allegiant’s strength in smaller and mid-sized markets will be complemented by Sun Country’s presence in larger cities. The combined airline will offer 551 Allegiant routes and 105 Sun Country routes, connecting Minneapolis-St. Paul (MSP) to Allegiant’s network and expanding nonstop service to leisure destinations.
* **Enhanced International Reach:** Access to Sun Country’s international network, spanning Mexico, Central America, Canada, and the Caribbean, will provide Allegiant customers with expanded service to 18 international destinations from its existing markets.
* **Operational Agility and Reliability:** Integrated scheduling and fleet management are expected to improve on-time performance. The combined airline’s flexible capacity will align with peak leisure travel demand, while leveraging year-round charter and cargo operations for maximum profitability. Dynamic route planning will allow for rapid adjustments to capitalize on emerging vacation trends and meet charter and cargo demands.
* **Strengthened Loyalty Program:** The merger will significantly enhance loyalty programs, combining Allegiant’s 21 million members with Sun Country’s over 2 million members, leading to richer benefits and greater flexibility for travelers.
* **Diversified Revenue Streams:** Sun Country’s established long-term contracts for charter services with entities like Amazon Prime Air, casinos, sports teams, and the Department of Defense, combined with Allegiant’s existing charter business, will create a more diversified and resilient revenue model, providing stable income streams and maximizing aircraft and crew utilization.
* **Fleet Optimization:** The combined fleet, encompassing both Airbus and Boeing aircraft, will offer enhanced flexibility for deployment and greater leverage with new and existing markets. Allegiant’s 737 MAX fleet and order book will be better utilized, improving fuel efficiency and capacity. The combined airline will operate approximately 195 aircraft, with 30 on order and an additional 80 options.
* **Financial Strength and Shareholder Returns:** Allegiant anticipates generating $140 million in annual synergies by the third year post-close. The transaction is expected to be accretive to earnings per share in the first year and enhance long-term financial returns. The combined company aims to maintain a strong balance sheet with Net Adjusted Debt to EBITDAR below 3.0x at closing.

**Integration and Leadership:**

Following the closing, the combined entity will continue under the Allegiant name, headquartered in Las Vegas, with a significant operational presence maintained in Minneapolis-St. Paul. Gregory C. Anderson will serve as CEO of the combined company, and Robert Neal will be President and CFO. Jude Bricker will join Allegiant’s Board of Directors, along with two other Sun Country board members, expanding the board to 11 members. Maury Gallagher will remain Chairman of the Board. Bricker will also serve as an advisor to Anderson to ensure a smooth integration.

Both airlines will continue to operate separately until a single operating certificate is obtained from the FAA. Immediate impacts on ticketing, flight schedules, or the Sun Country brand are not expected. The companies are committed to a transparent integration process with employees and their unions, adhering to all requirements under the Railway Labor Act.

**Transaction Details and Approvals:**

The merger agreement has received unanimous approval from the boards of directors of both companies. The transaction is expected to close in the second half of 2026, pending regulatory approvals, including U.S. federal antitrust clearance, and the approval of both companies’ shareholders.

Allegiant and Sun Country will host an investor conference call on Monday, January 12, 2026, at 8:30 AM Eastern Time to discuss the transaction. Further details and information can be found on a joint website dedicated to the transaction, www.SoaringForLeisure.com.

Barclays is serving as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as legal advisor to Allegiant. Goldman Sachs & Co. LLC is acting as financial advisor and Milbank LLP as legal advisor to Sun Country.