Leisure airlines Allegiant Air and Sun Country Airlines are now one company, following a $1.5 billion merger. Both brands, however, will continue to operate separately, and travelers can expect little change until the airlines are combined under the Allegiant name in the next 18-24 months, or by May 2028.
The combination cements Allegiant’s place as the eighth largest U.S. airline by seats, according to schedule data from aviation analytics firm Cirium.
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“Today marks a defining moment in Allegiant’s history as we officially join forces with Sun Country to create the leading leisure-focused airline in the United States,” said Gregory Anderson, CEO of Allegiant, in a statement.
“With a combined fleet of 195 aircraft serving nearly 175 cities, we are expanding access to affordable, reliable, and convenient travel for the communities that have long been the foundation of our business, while offering customers broader reach and more destinations.”
This comes amid talk about a number of merger deals in the airline industry. United Airlines CEO Scott Kirby confirmed in April that he had approached American Airlines about a potential deal to create the world’s largest airline. JetBlue Airways is also reportedly looking for a merger partner.
“Is there room for some mergers in the aviation industry? Yeah, I think there is,” Transportation Secretary Sean Duffy told CNBC in April.
Some of the merger talk had quietened after the recent shutdown of Spirit Airlines. However, insiders are confident that any potential deal would need to occur in the next two-and-a-half years, or during the rest of Donald Trump’s presidential term.
At Allegiant, Sun Country’s former home at Minneapolis-St. Paul International Airport (MSP) is now the combined airlines’ largest base by both flights and seats, according to Cirium Schedules. The airline also now includes Sun Country’s air cargo operations for Amazon Prime Air and its charter business.
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Meanwhile, airlines are quickly adding flights to fill the void left by Spirit’s sudden shut down earlier this month. The airline’s parent company confirmed that the wind-down has begun with immediate effect, leaving passengers stranded and all flights canceled.
The collapse of Spirit Airlines was a significant moment in the airline sector. Once known for redefining budget travel and pushing fares lower across the industry, its exit now leaves a gap in the ultra-low-cost segment, and changes the landscape of the airline industry.