Low-cost airline Allegiant will acquire Sun Country Airlines in a $1.5 billion deal, including debt, with Sun Country shareholders receiving Allegiant stock and cash for each share, representing a nearly 20% premium.

If approved, the combined airline will operate under the Allegiant brand with about 195 aircraft and serve roughly 175 cities on over 650 routes.

The merger, headquartered in Las Vegas, is expected to generate $140 million in annual synergies by year three and boost earnings per share in the first year.

Allegiant CEO Gregory Anderson will lead the combined company, with Sun Country CEO Jude Bricker joining the board, and Robert Neal serving as president and CFO, USA Today has reported.

The transaction is anticipated to close in the second half of 2026, with Allegiant shareholders owning 67% and Sun Country shareholders 33% of the new company.