Allegiant to acquire rival Sun Country Airlines in budget airline merger

Two of America’s budget airlines are planning to join forces.Allegiant Air announced plans to acquire rival Sun Country Airlines on Sunday, in a deal valued at roughly $1.5 billion.The merger would bring together two leisure travel-focused ultra-low-cost carriers: Allegiant, known for ferrying passengers from underserved cities to vacation spots, with Sun Country, which does the same — primarily out of its Minneapolis-St. Paul International Airport (MSP) home base.The deal would be subject to regulatory approval by the Trump administration, so travelers with flights booked in the coming weeks (and months) shouldn’t see any immediate changes.Allegiant expected the deal to close in the second half of this year.Bookings and operations with both airlines will continue, separately, in the meantime.ZACH GRIFF/THE POINTS GUYWhat the Allegiant-Sun Country merger means for travelersThe merger is expected to link Sun Country’s MSP base to many of Allegiant’s mid-size markets, the companies said. It would also give Allegiant access to the international destinations in Mexico and the Caribbean that it’s long coveted.Once complete, the combined airline will operate under the Allegiant name and retain its Las Vegas headquarters.That will mean the end of Sun Country as a standalone airline brand — one that has been around for 43 years.In a statement announcing the news Sunday, Allegiant said the tie-up would create a “leading, more competitive leisure-focused U.S. airline.””Together, our complementary networks will expand our reach to more vacation destinations, including international locations,” Allegiant CEO Greg Anderson said.”We are two customer-centric organizations, deeply committed to delivering affordable travel experiences without compromising on quality,” Sun Country President and CEO Jude Bricker added.Airline consolidation picks upThis would be the second merger involving two U.S. carriers this decade — with Sunday’s announcement coming roughly 16 months after Alaska Airlines closed on its acquisition of Hawaiian Airlines.Elsewhere, budget competitors Frontier Airlines and Spirit Airlines have reportedly reignited merger talks, in recent months, amid Spirit’s financial woes — but no deal has been announced.This latest wave of airline mergers (or apparent merger talk) follows a stretch that saw the Biden administration successfully block JetBlue’s Northeast Alliance with American Airlines in 2023, and its planned acquisition of Spirit in early 2024.Bottom lineFor Allegiant, this acquisition of Sun Country would represent a significant doubling down on its airline operation, after the company in 2025 offloaded its Florida Sunseeker resort and pledged to refocus on its core business.In recent months, the carrier has also announced a slew of new routes and pledged to overhaul its loyalty program.The companies planned to discuss the deal in a call with investors on Monday morning.Related reading:When is the best time to book flights for the cheapest airfare?The best airline credit cardsWhat exactly are airline miles, anyway?6 real-life strategies you can use when your flight is canceled or delayedMaximize your airfare: The best credit cards for booking flightsThe best credit cards to reach elite statusWhat are points and miles worth? TPG’s monthly valuationsEditorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.