TWO U.S. AIR CARRIERS ANNOUNCE MERGER AGREEMENT
February 11, 2026
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On January 11, 2026, Allegiant and Sun Country Airlines announced a definitive merger agreement which would create a single leisure-focused U.S. air carrier upon closing. Under the announced terms, Allegiant will acquire Sun Country in a cash and stock transaction valued at $1.5 billion. Unlike prior merger attempts between U.S. air carriers which failed to overcome robust antitrust scrutiny (the unsuccessful JetBlue and Spirit merger, for example), the proposed Allegiant-Sun Country combination includes minimal network overlap. For instance, the U.S. air carriers only overlap on two routes out of several hundred flights currently offered by Allegiant and Sun Country. While significant network separation should help to distinguish Allegiant and Sun Country from failed airline merger precedent, the Trump administration could still withhold regulatory approval or otherwise contest the transaction on antitrust grounds. Once approved, the combined U.S. air carrier would be majority owned by existing Allegiant shareholders.
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