Highlights

  • Sun Country Airlines shares jumped over 10% after Allegiant announced a $1.5B acquisition deal.
  • Allegiant will pay $18.89 per Sun Country share, a nearly 20% premium to Friday’s closing price.
  • Combined airline expected to serve 22 million customers annually across almost 175 cities.

Shares of Sun Country Airlines (NASDAQ: SNCY) rose sharply on Monday after the company agreed to be acquired by rival Allegiant (NASDAQ: ALGT) in a deal valued at approximately USD 1.5B. By market close, Sun Country Airlines shares closed at USD 17.44, up 10.59% on Monday.

Details of the Acquisition Deal
Under the agreement, Allegiant will acquire Sun Country at USD 18.89 per share in a combination of cash and stock. Sun Country investors will receive USD 4.10 in cash plus 0.1557 shares of Allegiant for each Sun Country share they hold. The offer represents nearly a 20% premium over Sun Country’s last closing price before the announcement.

The transaction is expected to close in the second half of 2026, pending approval from shareholders and regulatory authorities.

Strategic Implications for Both Airlines
The merger will unite two leisure-focused, low-cost carriers serving a combined 22 million passengers annually, covering almost 175 cities through 650 routes and 195 aircraft. Sun Country’s network is expected to complement Allegiant’s existing routes, with potential expansion into international markets including Canada, Mexico, Central America, and the Caribbean.

Management estimates that the combination could yield USD 140M in annual cost synergies by the third-year post-acquisition. Additionally, the deal is expected to enhance Allegiant’s earnings per share as soon as one year after closing.

Market Reaction and Outlook
The market responded positively to the acquisition announcement, reflecting the premium offered to Sun Country shareholders. Investors appear to have reacted to the potential operational efficiencies and broader route network that the merger may provide.