Allegiant Air and Sun Country complete merger: What this means for travelers

Spirit Airlines shuts down amid higher fuel prices

We are learning more this weekend after the news broke that Spirit Airlines is going out of business after 34 years of offering discounted fares. The airline recently announced that all flights have been canceled and customer service is no longer available. LiveNOW’s Alexandra Goldberg is speaking with Alexander Gladstone with The Wall Street Journal as Transportation Secretary Sean Duffy said other airlines were offering seating options to Spirit Airlines employees who may be trying to get home. 

LAS VEGAS - Allegiant Air said Wednesday that it has completed the purchase of Sun Country Airlines, a deal that combines two low-cost carriers.

The move comes amid steep airfares fueled by the war in Iran, along with the recent shutdown of its former low-budget competitor Spirit Airlines.

Allegiant Air and Sun Country complete merger

What they're saying:

Las Vegas-based Allegiant said the transaction closed following satisfaction of customary closing conditions, including required regulatory approvals and approval by both airlines’ shareholders.

"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," Allegiant CEO Gregory Anderson said in a statement. "By bringing together two strong airlines with similar business models, we are creating a more differentiated and durable airline – one well positioned to deliver lasting value for our customers, team members, and shareholders." 

What this means for travelers

Dig deeper:

Allegiant said the deal will offer a combined fleet of 195 aircraft serving nearly 175 cities and more than 650 routes.

"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," Allegiant continued. 

The airline noted that customers can continue to book travel through existing channels, and there are no changes to current reservations, flight schedules, or travel plans. 

An Allegiant Air Airbus A320 airplane departs from Harry Reid International Airport en route to Knoxville on March 15, 2026 in Las Vegas, Nevada. (Credit: Kevin Carter/Getty Images)

Both airlines will continue to operate as separate carriers in the near term, maintaining their respective brands. Allegiant Allways Rewards and Sun Country Rewards will also remain separate in the near term, and members' points, benefits, and account status will retain their current value.

Along with passenger flights, Sun Country brings into the fold cargo flying for Amazon, as well as charter trips for sports teams, casinos and the U.S. Department of Defense.

Over the long term, the combined company is expected to operate under the Allegiant name and remain headquartered in Las Vegas, while adding new options and connections across its broader network.

Minneapolis–St. Paul, where Sun Country is based, will remain an important hub for the airline.

High airline prices continue across US

Big picture view:

The deal comes as both airlines and travelers are grappling with a sharp run-up in jet fuel costs driven by the war in the Middle East, a jump that is already showing up in higher fares and fees across the industry. 

Recent data found that domestic airfare is up roughly 19% compared to this time last year, with average median round-trip flight prices climbing from $412 to $489.  

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According to the findings, the lower end of the range tells an even higher story: rock-bottom fares are up nearly 23%, meaning the cheapest options have seen the steepest climb.

The news also comes on the heels of the shutdown of Spirit Airlines earlier this month.

The ultra low-cost carrier shut down after 34 years, its collapse accelerated by the sharp rise in fuel costs following years of financial strain, including heavy debt, repeated restructuring efforts and ongoing cash-flow problems.