LAS VEGAS, Nev (Jan. 13, 2026) — Allegiant Travel Co. announced Monday it will acquire Sun Country Airlines in a cash-and-stock deal valued at approximately $1.5 billion, a merger that would create one of the largest leisure-focused airlines in the United States and expand flight options for travelers in markets such as Medford.
Allegiant Air currently operates multiple routes in and out of Rogue Valley International–Medford Airport (MFR), connecting Southern Oregon to nonstop leisure destinations. Company officials said the combination with Sun Country is expected to strengthen Allegiant’s route network, potentially expanding destination options for passengers in smaller and mid-sized markets served by Allegiant.
Under the agreement, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each share owned, representing an implied value of $18.89 per share. The offer reflects a premium of about 19.8% over Sun Country’s Jan. 9 closing price. Including debt, the transaction values Sun Country at roughly $1.5 billion.
Upon completion of the merger, Allegiant shareholders will own approximately 67% of the combined company, with Sun Country shareholders owning about 33%.
The combined airline is expected to serve about 22 million passengers annually, operate nearly 195 aircraft, and offer service to approximately 175 cities across more than 650 routes. The carriers said their networks are complementary, pairing Allegiant’s service to mid-sized communities — including Medford — with Sun Country’s focus on larger metropolitan areas such as Minneapolis–St. Paul.
The merger would also significantly expand Allegiant’s international reach by providing access to Sun Country’s existing routes to Mexico, Central America, Canada and the Caribbean.
Allegiant said the transaction is expected to generate about $140 million in annual synergies within three years of closing and be accretive to earnings per share within one year after completion. The combined airline is expected to maintain a net adjusted debt-to-EBITDAR ratio below 3.0 at closing.
Sun Country’s diversified operations, including long-term charter contracts and cargo flights for Amazon Prime Air, are expected to provide more stable revenue through seasonal demand cycles, company officials said.
Following the close, Allegiant will remain the publicly traded parent company and operate under the Allegiant name. The combined company will be headquartered in Las Vegas while maintaining a significant operational presence in Minneapolis–St. Paul.
Allegiant Chief Executive Officer Gregory C. Anderson will lead the combined airline. Sun Country President and CEO Jude Bricker will join Allegiant’s board of directors and serve as an advisor during the integration.
The transaction has been unanimously approved by the boards of both companies and is expected to close in the second half of 2026, pending shareholder approval, federal antitrust review and other regulatory approvals.
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