The U.S. Department of Justice has granted antitrust clearance for Allegiant Travel’s planned acquisition of Sun Country Airlines, a significant step in the $850 million deal.
Allegiant expects the acquisition to close in the second or third quarter of 2026, earlier than the previously estimated second half of the year. This merger aims to create a larger discount airline to compete against major carriers in the U.S. aviation market.
The combined company would operate a fleet of 195 aircraft and serve 175 airports, enhancing its competitive position in a highly consolidated industry. Allegiant CEO Greg Anderson stated, “We are pleased to receive U.S. antitrust clearance from the Department of Justice,” emphasizing the merger’s potential benefits for customers and shareholders.
The transaction, initially valued at approximately $1 billion when first announced, has seen a revised valuation based on Allegiant’s current share price. The mandatory waiting period under U.S. merger law has been terminated early, allowing the companies to move forward.
However, the deal still requires approval from shareholders and the U.S. Department of Transportation, and the exact reasons for the revised timeline for closing the acquisition remain undisclosed. Details remain unconfirmed.
Allegiant Travel is the parent company of Allegiant Air, and this merger is intended to strengthen their position in the competitive U.S. aviation market. The proposed acquisition is subject to customary closing conditions, which must be met before finalization.
