Allegiant Is Buying Sun Country Airlines, With Large Implications for Caribbean Travel

Two of the United States’ largest leisure-focused carriers are set to mix, with Allegiant asserting a definitive settlement to amass Sun Country Airlines in a cash-and-stock transaction that values Sun Country at roughly $1.5 billion.

Under the phrases of the settlement, Sun Country shareholders will obtain 0.1557 shares of Allegiant widespread inventory and $4.10 in money for every Sun Country share, representing a premium of almost 20 p.c over the airline’s Jan. 9, 2026 closing worth. Following the transaction, Allegiant shareholders will personal about 67 p.c of the mixed firm, with Sun Country shareholders holding the remaining 33 p.c on a totally diluted foundation.

The merger has been unanimously authorized by each corporations’ boards and is anticipated to shut within the second half of 2026, pending regulatory approvals and shareholder votes.

A New Powerhouse in Leisure and Vacation Travel

The mixture is anticipated to create one of many largest leisure-focused airways within the U.S., serving roughly 22 million passengers yearly. Both carriers have constructed their enterprise fashions round value-driven journey to trip locations, notably from underserved or secondary markets.

Executives from each corporations emphasised the complementary nature of their networks and operations, positioning the merged airline as extra versatile and resilient in responding to altering journey demand.

“This combination is an exciting next chapter in our shared mission of providing affordable, reliable service from underserved communities to premier leisure destinations,” mentioned Allegiant CEO Gregory C. Anderson.

What the Merger Means for Caribbean and Mexico Routes

For Caribbean vacationers, essentially the most vital takeaway is Sun Country’s present worldwide footprint. Sun Country at the moment serves locations throughout Mexico, Central America, Canada, and the Caribbean — markets the place Allegiant’s presence has been extra restricted.

According to the businesses, the mixed airline will function greater than 650 routes, together with service to 18 worldwide locations. Allegiant clients from small and mid-sized U.S. cities are anticipated to realize simpler entry to Sun Country’s worldwide leisure routes, together with flights to seaside locations standard with U.S. vacationers.

The airways mentioned the merger will help expanded nonstop leisure service, notably throughout peak journey intervals, whereas sustaining a concentrate on value-oriented fares.

Bigger Network, More Flexible Flying

Together, the carriers will mix Allegiant’s power in small and mid-sized U.S. markets with Sun Country’s larger-city community, together with its base in Minneapolis–St. Paul. Executives mentioned built-in scheduling and fleet administration will enable the mixed airline to regulate capability extra shortly, enhancing on-time efficiency and matching demand extra effectively throughout high-volume leisure journey seasons.

The mannequin additionally incorporates Sun Country’s constitution and cargo operations, that are anticipated to offer year-round utilization and income stability past conventional leisure flying.

Loyalty Programs and Customer Impact

The merger may even convey collectively two massive loyalty applications. Sun Country’s greater than 2 million loyalty members will be part of Allegiant’s base of roughly 21 million, making a considerably expanded rewards ecosystem. The airways mentioned the mixed program will combine options from each carriers, providing enhanced advantages and broader redemption alternatives.

Sun Country President and CEO Jude Bricker mentioned the deal permits the airline to proceed its progress whereas delivering worth to shareholders and clients. “We are two customer-centric organizations deeply committed to delivering affordable travel experiences without compromising on quality,” he mentioned.

What Comes Next

The transaction now strikes right into a regulatory overview part, together with U.S. federal antitrust clearance and shareholder approval. If accomplished as deliberate, the merger would mark one of the consequential consolidations within the U.S. leisure airline sector lately.

For vacationers headed to the Caribbean, Mexico, and different trip markets, the deal indicators the potential for expanded low-cost entry from extra U.S. cities — and a bigger, extra versatile airline targeted squarely on leisure journey.