.jpg)
2 hours ago
2
Article content
(Bloomberg) — Allegiant Travel Co. will acquire Sun Country Airlines Holdings Inc. in a cash-and-stock deal valued at $1.5 billion including Sun Country’s debt, the two carriers said in a joint statement on Sunday.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Sun Country’s shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash per Sun Country share, the companies said. The offer represents a premium of 19.8% over Sun Country’s closing share price on Friday, according to the statement.
Article content
Article content
The combined entity will provide more than 650 routes, including 18 international destinations in Mexico, Canada, the Caribbean and Central America, the companies said, and will bring together Allegiant’s presence in small and mid-sized markets with Sun Country’s larger cities.
Article content
Article content
“Together, our complementary networks will expand our reach to more vacation destinations including international locations,” Allegiant Chief Executive Officer Gregory C. Anderson said in a statement.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Founded in 1982, Sun Country has a customer base largely consisting of lower- and middle-income families who are sensitive to economic conditions. The Minneapolis, Minnesota-based budget carrier operates passenger, cargo and charter flights.
Article content
The deal, which is expected to close in the second half of 2026, brings together two relatively smaller carriers that have primarily focused on offering direct flights to price-sensitive US vacationers. It comes after a bruising year for US aviation, which included a government shutdown, trade feuds and network disruptions.
Article content
The low-cost airline model offered by Sun Country and Allegiant is under pressure as major US airlines eat into their customer base with basic economy fares. Smaller operators have also grappled with higher costs since the pandemic and passengers willing to pay more for a better travel experience on other airlines.
Article content
For example, Spirit Aviation Holdings Inc., which filed its second bankruptcy in less than a year in August, is in revived discussions to merge with Frontier Group Holdings.
Article content
Las Vegas-based Allegiant has been restructuring operations to focus on flying. In September, it completed the sale of its beleaguered Sunseeker Resort in Florida, ending a yearslong saga originally intended to expand the company’s travel business into hospitality.
Article content
(Updates with additional context starting in sixth paragraph.)
Article content
English (US)