Home / Business and Economy / Allegiant & Sun Country Merger Set for May
Allegiant & Sun Country Merger Set for May
2 May
Summary
- Allegiant Air merger with Sun Country Airlines expected to close May 13.
- Deal valued at $1.5 billion, including Sun Country debt.
- Combined airlines will offer over 650 routes to 22 million passengers.
Allegiant Air is on track to complete its $1.5 billion merger with Sun Country Airlines by May 13. Shareholders are scheduled to consider the transaction on May 8. Regulatory bodies have already approved the deal, which unites two significant leisure air carriers.
The merger combines Allegiant's network in small and mid-sized cities with Sun Country's presence in larger urban areas. Together, they will offer more than 650 routes, serving an estimated 22 million passengers annually. This strategic combination aims to strengthen their market position.
Under the agreement, Sun Country shareholders will receive a mix of Allegiant common stock and cash. This transaction values Sun Country at $1.5 billion, accounting for its existing debt. Allegiant executives highlighted that despite fuel price challenges, both airlines are positioned as efficient operators.
Allegiant reported positive financial results for the quarter ending March 31, with net income of $42.5 million on revenue of $732.4 million. The company is also integrating new, fuel-efficient Boeing 737 jets into its fleet.
