Allegiant Air Completes $1.5 Billion Sun Country Merger, Becomes Fifth-Largest U.S. Carrier

TL;DR: Allegiant Air has finalized its $1.5 billion acquisition of Sun Country Airlines. The deal creates a combined carrier with 195 aircraft serving nearly 175 cities and over 650 routes, making it the fifth-largest U.S. airline by passenger volume.

The companies first announced the merger in October 2025 and closed after regulatory review. For the next 18 to 24 months Allegiant and Sun Country will continue to operate under their own brands while they work toward a single operating certificate from the FAA.

A single operating certificate means the combined airline will be licensed to fly as one entity rather than two separate ones. Securing it is a key step before any brand consolidation can occur.

Once they secure the certificate, the plan is to phase out the Sun Country name and operate all aircraft under the Allegiant brand. The fleet will grow to about 300 aircraft as current orders are delivered.

Valuers set the transaction at $1.5 billion.

After the close, the combined airline will operate 195 aircraft, serve nearly 175 cities, and cover more than 650 routes across the United States and select international destinations.

CEO Gregory Anderson said, "Today marks a defining moment in Allegiant's history. By bringing together two strong airlines with complementary models, we are creating a more durable airline that is well-positioned to deliver lasting value for our customers, team members, and shareholders."

With 195 aircraft the new entity surpasses JetBlue and Alaska Airlines in passenger volume, at least until the Alaska-Hawaiian merger closes. This shifts the competitive landscape among mid-size U.S. carriers.

The combined network offers travelers more nonstop options between leisure destinations, potentially increasing pressure on rivals to match fares or expand service.

Fleet growth to roughly 300 aircraft will allow the airline to add new routes and increase frequency on existing ones as aircraft deliveries arrive over the next few years.

In the short term, loyalty programs, credit card partnerships, and flight schedules will remain unchanged, and customers cannot yet book trips that combine Allegiant and Sun Country flights.

Watch for progress on the FAA single operating certificate, the timeline for retiring the Sun Country brand, and any adjustments to pricing or service levels as integration proceeds.