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Allegiant Airlines will acquire Sun Country Airlines in a $1.5 billion merger, expanding low-cost leisure travel and service to more U.S. and international destinations. (Submitted)
Allegiant acquiring low-cost airline for $1.5B
Stacy Wescoe//January 12, 2026//
One of the major airlines serving Lehigh Valley International Airport is acquiring another low-cost airline for $1.5 billion.
Allegiant, which is headquartered in Las Vegas but has operations at LVIA, has announced a definitive merger agreement under which Allegiant will acquire Sun Country Airlines in a cash and stock transaction at an implied value of $18.89 per Sun Country share.
Upon closing, Allegiant and Sun Country shareholders will own approximately 67% and 33%, respectively, of the combined company.
In a press release, Allegiant said the combination will create a leading leisure-focused U.S. airline, expanding service to more popular vacation destinations across the United States, as well as international destinations, and providing more people with access to affordable, convenient air travel.
Gregory Anderson, Allegiant CEO, commented on the acquisition.
“This combination is an exciting next chapter in Allegiant and Sun Country’s shared mission in providing affordable, reliable, and convenient service from underserved communities to premier leisure destinations,” Anderson said. “We have long admired Sun Country for their well-run, flexible, and diversified business model that optimizes for year-round utilization and strong margins. Together, our complementary networks will expand our reach to more vacation destinations, including international locations.”
Allegiant said it and Sun Country will work closely with employees and their unions — including pilots, flight attendants, mechanics, ground staff, and dispatchers — to ensure a smooth and transparent integration process.
Existing collective bargaining agreements will remain in effect, and the companies will follow all processes required under the Railway Labor Act.
Upon closing, Allegiant CEO Gregory C. Anderson will serve as CEO of the combined company, and Robert Neal will serve as president and CFO.
Sun Country President and CEO Jude Bricker will join the board of directors, alongside two additional Sun Country board members, expanding the size of the Allegiant board to 11.
