The merger between Allegiant and Sun Country is aimed at expanding their cargo operations.

Allegiant Airlines has agreed to acquire Sun Country Airlines in a cash-and-stock deal valued at approximately $1.5 billion, translating to $18.89 per share for Sun Country shareholders. The merger offers a 19.8% premium over Sun Country's recent share price and aims to create a leading leisure-focused airline in the U.S. The combined entity will operate under the Allegiant name, with Allegiant's CEO Gregory C. Anderson leading. The merger is expected to generate $140 million in annual synergies and enhance both companies' financial strength and operational efficiency, pending regulatory approvals.