las vegas — Allegiant Air said Wednesday it has completed its work Buying Sun Country Airlinesfinalizing a deal combining two low-cost carriers at a price of A A turbulent time for the budget airline industry After the recent closure of competitor Spirit Airlines.
Las Vegas-based Allegiant said the deal closed after obtaining the required regulatory and shareholder approvals. When the deal was first announced in January, Allegiant said it was worth about $1.5 billion, including debt.
“Today marks a defining moment in Allegiant’s history as we officially join Sun Country,” Allegiant CEO Gregory Anderson said in a statement, adding that the new combined airline is positioned to provide broader access to affordable travel.
This deal comes at a time when airlines and travelers are struggling A sharp rise in aviation fuel costs Driven by the war in the Middle East, a jump is already showing in rising prices and fees across the industry. This increase hits low-cost airlines particularly hard, as they have less room to absorb rising costs.
The pressure has been particularly acute for Spirit Airlines. The ultra-low-cost carrier has closed After 34 years On May 2, its collapse was accelerated by a sharp rise in fuel costs after years of financial pressure, including heavy debt, repeated restructuring efforts and persistent cash flow problems.
Against this backdrop, Allegiant and Sun Country say their association gives them more ways to generate revenue. Besides passenger flights, Sun Country provides cargo transportation services for Amazon, as well as charter flights for sports teams, casinos and the U.S. Department of Defense.
Allegiant says the expanded network is also expected to give travelers more choices, especially in small and medium-sized markets, with about 195 aircraft serving nearly 175 cities and more than 650 routes.
For now, travelers should not expect any changes. The two companies will continue to operate separately, and customers can continue booking, checking in and managing trips just as they do today.
Allegiant said it will take some time to bring the two airlines together. In 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. Poole, where Sun Country is based, will remain an important hub for the airline.