Minnesota’s hometown airline is entering a new chapter. On Jan. 11, Sun Country Airlines announced it will combine with Allegiant Air in a $1.5 billion cash-and-stock deal, creating one of the nation’s largest leisure-focused carriers and signaling a shift in how budget airlines compete in a post-pandemic market.
Courtesy of Allegiant Air
The merger brings together two airlines with similar low-cost, flexible business models and largely complementary route networks. Together, the combined company will serve nearly 175 cities with more than 650 routes across the U.S., Mexico, Central America, Canada, and the Caribbean—expanding options for vacation travelers while remaining focused on affordability.
For Minnesotans, the announcement carries particular weight. Sun Country, founded in Minnesota and based in Minneapolis–St. Paul, has deep roots in the state through decades of leisure travel, charter flights, and cargo operations—including its long-term partnership with Amazon. Importantly, the companies say the combined airline will maintain a significant presence at MSP Airport, preserving the Twin Cities as a key anchor city and base of operations.
“Our two complementary airlines will create the leading, more competitive, leisure-focused airline in the U.S.,” said Allegiant Air CEO Greg Anderson in an interview, noting that the carriers have little network overlap and can better compete with much larger airlines that dominate domestic air travel. Upon closing, Anderson will serve as CEO of the combined company.
Sun Country President and CEO Jude Bricker called the deal a natural evolution for the Minnesota-based airline, which has spent more than four decades connecting travelers to vacation destinations while diversifying through charter and cargo flying. Under the agreement, Allegiant shareholders will own about 67% of the combined company, with Sun Country shareholders holding roughly 33%.
Courtesy of Sun Country Airlines
The merger comes at a challenging moment for budget airlines, which have faced rising costs and increased competition since the pandemic. Industry analysts say consolidation could help smaller carriers gain scale, stability, and negotiating power—though the deal will still require federal regulatory approval.
Until the transaction is finalized, expected in the second half of 2026, it’s business as usual for Sun Country customers. Flights, schedules, and loyalty programs remain unchanged, even as one of Minnesota’s most recognizable travel brands prepares to take flight on a much larger national stage.
