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Allegiant to buy Sun Country in $1.3 billion deal, creating new low-cost airline giant

Left 44% Center coverage: 9 sources Right

Las Vegas, Nevada, United States

January 10, 2026 (Updated: January 21, 2026) 2 Center Neutral I want travel deals

TheWkly Analysis

Allegiant Travel has agreed to acquire rival leisure airline Sun Country Airlines in a $1.3 billion deal combining cash, stock, and assumed debt, creating a major new force in the low-cost airline market. The acquisition would expand Allegiant’s network to about 175 cities and add over 4 million annual passengers, along with Sun Country’s fleet of Embraer E175 jets and partnerships with Alaska Air and Delta for charter operations. Allegiant said the merger would allow it to offer more nonstop routes, strengthen its position as a leisure travel carrier, and cut costs by about $100 million annually through efficiencies. The deal, expected to close in the second half of 2026 pending regulatory and shareholder approvals, would create what Allegiant called a “fourth national low-cost carrier.”

Multiple perspectives analyzed from 9 sources

What this means for you:

•	This merger could mean more nonstop flights and route options if Allegiant expands Sun Country’s network. But airline consolidation can also reduce competition over time, so it may affect fares and service quality depending on how regulators respond.

Key Entities

• Allegiant Travel - Budget airline (acquiring Sun Country)
• Sun Country Airlines - Leisure airline (being acquired)
• Delta Air Lines - Airline partner (Sun Country charter relationship)
• Alaska Air - Airline partner (Sun Country charter relationship)

Bias Distribution

Left: 44% (4 sources)

Center: 44% (4 sources)

Right: 11% (1 source)

Multi-Perspective Analysis

Left-Leaning View

Flags airline consolidation risks and potential fare increases; stresses antitrust review and consumer impacts.

Centrist View

Describes the deal, financing, and regulatory approvals; notes expanded routes and separate brands for now.

Right-Leaning View

Emphasizes growth and competition with bigger carriers; frames merger as a win for low-cost travel.

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