Allegiant Airlines, based in Las Vegas, has announced its acquisition of Sun Country Airlines in a $1. 5 billion deal. Sun Country, which has faced two bankruptcies in the past 25 years, will now become a part of the larger leisure carrier.
The merger, which was revealed in a joint news release on Sunday, will see Sun Country’s Minneapolis headquarters disappear and be replaced by Allegiant’s Las Vegas headquarters. The newly merged airline will operate under the Allegiant name and be led by current CEO Gregory C. Anderson. Sun Country’s current president and CEO, Jude Bricker, will serve as an advisor to Anderson during the integration process. Additionally, Bricker and two other members of Sun Country’s board will join the expanded board of Allegiant.
Bricker, who previously served as president of Allegiant, was hired by Sun Country in 2017 and has since led the airline to become a public company in 2021. Sun Country is a major player at the Minneapolis-St. Paul International Airport, holding the second-largest passenger market share at 11. 5%. The Metropolitan Airports Commission reported that Sun Country’s operating revenues for 2024 were $1. 076 billion with scheduled service passenger flights generating the largest amount of revenue at $409 million.
The merger will provide more flight destinations for passengers of both airlines, with a focus on connecting mid-sized markets with popular vacation spots. However, it may have an impact on regional airports, such as St. Cloud and Sioux Falls, where Allegiant previously operated flights.
The acquisition is expected to close in the second half of 2026 and will not have an immediate impact on Sun Country passengers. Flight schedules and ticketing procedures will remain the same, and collective bargaining agreements for employees will also remain in effect. However, negotiating one labor agreement for employees from two different airlines may prove to be a challenge.
Shareholders of Sun Country will benefit greatly from the deal, with an implied value of $18. 89 per share, representing a premium of 19. 8% over the airline’s closing share price on January 9. After the merger, none of the top five carriers serving Minneapolis-St. Paul International Airport will be based in Minnesota.
Sun Country has faced a tumultuous past, surviving two bankruptcies, the first being shortly after the September 11, 2001 terrorist attacks. The airline was also impacted by the arrest of its then-owner Tom Petters for running a Ponzi scheme in 2008. However, in 2011, the Davis family bought Sun Country out of bankruptcy and sold it to Apollo Global Management in 2017.
The acquisition of Sun Country by Allegiant will create a larger leisure carrier, but also marks the loss of a Minnesota headquarters. The merger is subject to federal regulatory review, but it is unlikely that the Trump Department of Justice will block the deal.