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Sun Country Airlines Stock Pops After Allegiant Buys Fellow Budget Carrier

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Investors see sunshine for Sun Country Airlines Holdings (SNCY) stock.

Sun Country shares soared 13% in premarket trading Monday, a day after the airline agreed to combine with fellow ultra-low-cost carrier Allegiant Travel Company (ALGT) to “create a leading leisure-focused U.S. airline.”

Las Vegas-based Allegiant will acquire Minneapolis-based Sun Country for $1.5 billion in cash and stock, including $400 million of net debt. Allegiant stock reversed earlier gains and were down 3% before the bell.

Upon closing, which is expected in the second half of 2026, Allegiant and Sun Country shareholders would own about 67% and 33%, respectively, of the combined company, which would continue under the Allegiant name. Each would operate separately until they obtain a single operating certificate from the Federal Aviation Administration.

Allegiant CEO Gregory Anderson would serve as the combined company’s CEO, while Sun Country CEO Jude Bricker would join the board and serve as an advisor to Anderson. The new company would be headquartered in Las Vegas but would “maintain a significant presence in Minneapolis-St. Paul,” according to the release announcing the deal.

“Allegiant and Sun Country are well positioned to create one of the most adaptable and resilient airline models in the industry, with the ability to respond quickly to changing market conditions, traveler demand, and charter and cargo partner needs,” the release said. “The combination of two financially strong leisure carriers in the U.S. will create benefits for customers, communities, employees, and partners by enhancing stability, expanding opportunities, and enabling continued investment and innovation.”

The deal likely would not face substantial regulatory concern, as the carriers have served different markets. Allegiant flies routes with little competition from small cities, while Sun Country handles cargo flights for Amazon (AMZN), charter routes, and scheduled flights across the U.S. and to international destinations in Mexico, Canada, Central America, and the Caribbean.