TL;DR
Allegiant and Sun Country have officially merged in a $1.5 billion deal. Both brands will operate separately for now, with plans to unify under Allegiant within 18-24 months. The merger boosts Allegiant’s position as a top U.S. leisure airline.
Leisure airlines Allegiant Air and Sun Country Airlines have officially completed their roughly $1.5 billion merger, creating one of the largest leisure-focused carriers in the United States. Both brands will continue to operate separately until their brands are unified within the next 18-24 months, or by May 2028.
The merger, finalized on May 13, 2026, consolidates Allegiant’s position as the eighth-largest U.S. airline by seats, according to Cirium data. Allegiant CEO Gregory Anderson announced that the combined airline will have a fleet of 195 aircraft serving nearly 175 destinations, including Sun Country’s hubs at Minneapolis-St. Paul International Airport and Harry Reid International Airport in Las Vegas.
Initially, both airlines will maintain their respective loyalty programs—Allegiant Allways Rewards and Sun Country Rewards—until they are merged under the Allegiant brand. The integration process is expected to be completed by May 2028. The combined airline also includes Sun Country’s cargo operations for Amazon Prime Air and its charter services.
Why It Matters
This merger marks a significant consolidation in the U.S. leisure airline market, potentially affecting competition, pricing, and route availability. It also signals ongoing industry shifts amid broader merger talks across the airline sector, including potential deals involving United, American, and JetBlue.
For travelers, the merger could lead to expanded route networks, more flight options, and potentially lower fares, especially as the combined airline leverages its larger fleet and network.
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Background
The airline industry has seen increased merger activity in recent years, with Allegiant and Sun Country’s consolidation following a period of industry turbulence and speculation about further deals. The industry’s focus on leisure travel has driven airlines to seek scale and efficiency through mergers. The deal also follows the collapse of Spirit Airlines in May 2026, which had been a potential merger target for other carriers.
Prior to this, Allegiant and Sun Country operated independently, with Allegiant focused on low-cost leisure routes and Sun Country expanding its presence at key U.S. airports. The merger aims to create a more competitive leisure airline with broader reach and operational efficiencies.
“Today marks a defining moment in Allegiant’s history as we officially join forces with Sun Country to create the leading leisure-focused airline in the United States.”
— Gregory Anderson, CEO of Allegiant
“Both brands will continue to operate separately until the full integration is complete, ensuring a smooth transition for our customers.”
— Sun Country Airlines spokesperson
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What Remains Unclear
It is still unclear how quickly the brands will fully unify under the Allegiant name, or how the merger might impact fares, routes, and customer service in the short term. Details about future loyalty program integration and operational changes remain to be announced.
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What’s Next
Over the next 18-24 months, Allegiant and Sun Country will work on integrating their brands, loyalty programs, and operations. The airlines will also explore expanding their route networks and optimizing fleet deployment. Further announcements regarding branding, customer experience, and potential route adjustments are expected in the coming months.
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Key Questions
Will there be immediate changes to flights or routes?
There are no immediate changes planned. Both airlines will continue operating separately until their brands are unified, which is expected to happen by May 2028.
How will the merger affect loyalty programs?
The Allegiant Allways Rewards and Sun Country Rewards programs will remain separate until they are merged, which is planned to occur within the next 18-24 months.
What does this mean for travelers in terms of fares and options?
The merger could lead to expanded route options and potentially more competitive fares, but specific impacts will depend on future operational decisions and market conditions.
Are there plans for further airline mergers in the U.S.?
While industry insiders continue to discuss potential deals, no additional mergers have been officially announced. The industry remains attentive to possible consolidations, especially with ongoing sector shifts.
