Allegiant Air Completes Purchase of Sun Country Airlines

Allegiant Air completed its purchase of Sun Country Airlines on Wednesday, creating a larger budget airline at a time when the sector is under pressure from rising jet fuel costs. When the deal was first announced in January it was valued at about $1.5 billion, including debt.

The combination brings together two low-cost carriers following the recent shutdown of rival Spirit Airlines. The ultra low-cost carrier ceased operations on May 2 after 34 years, its collapse accelerated by the sharp rise in fuel costs along with years of financial strain that included heavy debt and cash-flow problems.

Both airlines and travelers are grappling with a sharp run-up in jet fuel costs driven by the war in the Middle East. That increase has already shown up in higher fares and fees across the industry and is hitting low-cost carriers especially hard because they have less room to absorb rising costs.

Against that backdrop the companies say their tie-up gives them more ways to generate revenue. Sun Country brings cargo flying for Amazon as well as charter trips for sports teams, casinos and the U.S. Department of Defense. The expanded network is expected to give travelers more options especially in smaller and mid-sized markets.

The combined operation will have about 195 aircraft serving nearly 175 cities and more than 650 routes.

For now travelers should not expect any changes. Both airlines will continue to operate separately and customers can keep booking, checking in and managing trips just as they do today. It will take time to integrate the two carriers. Over the long term the combined company is expected to operate under the Allegiant name and remain headquartered in Las Vegas while adding new options and connections across its broader network.

Minneapolis-St. Paul, where Sun Country is based, will remain an important hub. >"Today marks a defining moment in Allegiant’s history as we officially join forces with Sun Country... " — Company statement, May 13, 2026 (AP) The deal comes as the budget airline segment consolidates amid economic pressures that contributed to Spirit Airlines' exit from the market earlier this month.