Allegiant and Sun Country finalize $1.5B merger

Allegiant Air and Sun Country Airlines have officially completed their $1.5 billion merger, creating a larger budget airline amid industry turbulence. The deal, announced in January and finalized on Wednesday, combines two low-cost carriers following the sudden shutdown of rival Spirit Airlines. Both airlines will continue operating separately for now, with Allegiant retaining its Las Vegas headquarters and Sun Country maintaining its Minneapolis-St. Paul presence. The merger expands the combined fleet to 195 aircraft serving nearly 175 cities across more than 650 routes. Allegiant CEO Gregory Anderson stated the merger creates a "more differentiated and durable airline" positioned to offer broader access to affordable travel. The deal comes as the aviation industry faces rising fuel costs driven by the war in the Middle East, which has already led to higher fares and fees. Spirit Airlines collapsed on May 2 after 34 years, accelerated by financial strain and cash-flow problems. Sun Country brings additional revenue streams, including cargo flying for Amazon and charter trips for sports teams, casinos, and the U.S. Department of Defense. The merger aims to provide more options for travelers, particularly in smaller and mid-sized markets.