Allegiant Is Acquiring Sun Country Airlines, With Big Implications for Caribbean Travel

Two of the United States’ largest leisure-focused carriers are set to combine, with Allegiant announcing a definitive agreement to acquire Sun Country Airlines in a cash-and-stock transaction that values Sun Country at approximately $1.5 billion.

Under the terms of the agreement, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country share, representing a premium of nearly 20 percent over the airline’s Jan. 9, 2026 closing price. Following the transaction, Allegiant shareholders will own about 67 percent of the combined company, with Sun Country shareholders holding the remaining 33 percent on a fully diluted basis.

The merger has been unanimously approved by both companies’ boards and is expected to close in the second half of 2026, pending regulatory approvals and shareholder votes.

A New Powerhouse in Leisure and Vacation Travel

The combination is expected to create one of the largest leisure-focused airlines in the U.S., serving roughly 22 million passengers annually. Both carriers have built their business models around value-driven travel to vacation destinations, particularly from underserved or secondary markets.

Executives from both companies emphasized the complementary nature of their networks and operations, positioning the merged airline as more flexible and resilient in responding to changing travel demand.

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

What the Merger Means for Caribbean and Mexico Routes

For Caribbean travelers, the most significant takeaway is Sun Country’s existing international footprint. Sun Country currently serves destinations across Mexico, Central America, Canada, and the Caribbean — markets where Allegiant’s presence has been more limited.

According to the companies, the combined airline will operate more than 650 routes, including service to 18 international destinations. Allegiant customers from small and mid-sized U.S. cities are expected to gain easier access to Sun Country’s international leisure routes, including flights to beach destinations popular with U.S. travelers.

The airlines said the merger will support expanded nonstop leisure service, particularly during peak travel periods, while maintaining a focus on value-oriented fares.

Bigger Network, More Flexible Flying

Together, the carriers will combine Allegiant’s strength in small and mid-sized U.S. markets with Sun Country’s larger-city network, including its base in Minneapolis–St. Paul. Executives said integrated scheduling and fleet management will allow the combined airline to adjust capacity more quickly, improving on-time performance and matching demand more efficiently during high-volume leisure travel seasons.

The model also incorporates Sun Country’s charter and cargo operations, which are expected to provide year-round utilization and revenue stability beyond traditional leisure flying.

Loyalty Programs and Customer Impact

The merger will also bring together two large loyalty programs. Sun Country’s more than 2 million loyalty members will join Allegiant’s base of roughly 21 million, creating a significantly expanded rewards ecosystem. The airlines said the combined program will integrate features from both carriers, offering enhanced benefits and broader redemption opportunities.

Sun Country President and CEO Jude Bricker said the deal allows the airline to continue its growth while delivering value to shareholders and customers. “We are two customer-centric organizations deeply committed to delivering affordable travel experiences without compromising on quality,” he said.

What Comes Next

The transaction now moves into a regulatory review phase, including U.S. federal antitrust clearance and shareholder approval. If completed as planned, the merger would mark one of the most consequential consolidations in the U.S. leisure airline sector in recent years.

For travelers headed to the Caribbean, Mexico, and other vacation markets, the deal signals the potential for expanded low-cost access from more U.S. cities — and a larger, more flexible airline focused squarely on leisure travel.