Allegiant Air and Sun Country Airlines have recently announced their plans for a $1. 5 billion merger, which would create a combined airline serving nearly 175 cities. This merger would also expand Allegiant’s reach to international destinations and bring about a new loyalty program with enhanced benefits for customers.

According to Allegiant CEO Gregory C. Anderson, this merger is an exciting next chapter for both airlines in their shared mission to provide affordable, reliable, and convenient service from underserved communities to premier leisure destinations. The deal, which was announced on January 11, promises to expand the airlines’ networks to more vacation destinations, including international locations.

Together, Allegiant and Sun Country currently serve 22 million customers per year. While Allegiant primarily operates domestically, Sun Country also serves cities in Canada, Mexico, Central America, and the Caribbean. The deal is still pending approval from federal regulators and the shareholders of both companies.

If the merger is approved, Sun Country customers can expect access to the full slate of destinations offered by both airlines, totaling nearly 175 cities and over 650 routes. Currently, there is minimal overlap between routes as each airline has established its own niche market, as stated by aviation analytics company Cirium.

The newly combined company will retain the name Allegiant, but both Allegiant and Sun Country will continue to operate separately until they receive a single operating certificate from the Federal Aviation Administration. In a joint news release, the airlines state that there will be no immediate impact on ticketing, flight schedules, or the travel experience, and customers can continue to book and fly with both airlines as they do today.

The expected closure date for the deal is in the second half of 2026. As for loyalty programs, Allegiant’s Always Rewards and Sun Country Rewards will be combined into a new program with expanded frequent flyer and membership benefits. However, the details of these benefits have not been disclosed at this time.

Allegiant currently serves destinations in 47 states, including Alaska and Hawaii. On the other hand, Sun Country serves cities in 34 states, as well as Puerto Rico and St. Thomas in the U. S. Virgin Islands. Their international destinations include Aruba, Belize, Canada, Cayman Islands, Costa Rica, Dominican Republic, Honduras, Jamaica, Mexico, and St. Maarten.

The merger between Allegiant and Sun Country promises to bring more choices for customers of both low-budget carriers, expanding their reach and providing enhanced benefits for loyal customers. The deal is still subject to approval, but if successful, it is expected to close in the second half of 2026.