Sun Country Airlines and Allegiant announce merger in $1.5B deal

Minneapolis-based Sun Country Airlines is being acquired by Allegiant Air in a deal valued at roughly $1.5 billion, the companies announced on Sunday.

The airlines say the merger “will create a leading leisure-focused U.S. airline” and bring more travel destinations to their service.

Combined, the two airlines transport around 22 million passengers each year.

Sun Country President and CEO Jude Bricker, who was Allegiant’s chief operating officer before joining Sun Country in 2017, said, “Today marks an exciting next step in our history as we join Allegiant to create one of the leading leisure travel companies in the U.S. We are two customer-centric organizations, deeply committed to delivering affordable travel experiences without compromising on quality.”

“Together, our complementary networks will expand our reach to more vacation destinations including international locations. With our combined strengths– including operational excellence, consistent profitability, strong balance sheets, and fleet ownership, we will create an even more resilient and agile airline that delivers greater value to travelers, partners, Team Members, shareholders, and the communities we serve,” Allegiant CEO Gregory C. Anderson added.

The combined company will be headquartered in Las Vegas but will still have a significant presence in the Twin Cities, the companies say.

Both boards have already approved the deal, which is expected to close in the second half of this year.

Throughout its 43 years, Sun Country has made strong community ties in Minnesota, partnering with many local organizations, including University of Minnesota athletics. Nearly all of its flights depart from or return to Minneapolis-St. Paul International Airport (MSP), which is expected to still be an important base and key anchor city for the airlines when the merger closes.

For Minnesotans, the companies say the combination will connect MSP to more mid-sized markets and expand direct service to popular vacation spots.

More details are expected to be shared during an investor call on Monday.
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