Allegiant Acquires Sun Country Airlines
Allegiant today announced it has successfully completed its acquisition of Sun Country Airlines, bringing together two low-cost carriers focused on affordable leisure travel. When the deal was first announced in January, Allegiant said it was valued at about $1.5 billion, including debt. The news comes just weeks after another budget carrier Spirit Airlines shut down in the biggest U.S. airline collapse in decades.
“Today marks a defining moment in Allegiant’s history as we officially join forces with Sun Country to create the leading leisure-focused airline in the United States,” said Allegiant CEO Gregory C. Anderson. “With a combined fleet of 195 aircraft serving nearly 175 cities, we are expanding access to affordable, reliable, and convenient travel for the communities that have long been the foundation of our business, while offering customers broader reach and more destinations. By bringing together two strong airlines with similar business models, we are creating a more differentiated and durable airline – one well positioned to deliver lasting value for our customers, team members, and shareholders. I want to recognize Team Allegiant and Team Sun Country, whose dedication and hard work made this day possible.”
Customers can continue to book travel through existing channels, and there are no changes to current reservations, flight schedules, or travel plans. Both airlines will continue to operate as separate carriers in the near term, maintaining their respective brands. Allegiant Allways Rewards and Sun Country Rewards will remain separate in the near term, and members’ points, benefits, and account status will retain their current value. Customers should continue to manage reservations, check in, and access customer service through the airline with which they booked travel. Over time, Allegiant expects to introduce additional benefits that make it easier for customers to access the combined network.
Together, Allegiant and Sun Country will serve approximately 22 million annual customers across nearly 175 cities, with more than 650 routes and a combined fleet of 195 aircraft.
Financially, the combination of Allegiant and Sun Country brings together two profitable airlines with complementary networks, diversified revenue streams and strong balance sheets, creating a platform with meaningful long-term value creation potential. Allegiant reported a $42.5 million profit for the first quarter, up 32% from a year earlier. The airline expects to realize approximately $140 million in annual synergies within three years following closing and integration, driven by expanded customer choice across the combined network, scale efficiencies, fleet optimization, and procurement benefits.
