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 airline’s strategy to expand its market presence. The acquisition is valued at approximately $850 million based on Allegiant’s current share price.
Allegiant expects the acquisition to close in the second or third quarter of 2026, earlier than the previous estimate of the second half of 2026. This revised timeline follows the termination of the mandatory waiting period under U.S. merger law.
The merger aims to create a larger discount airline capable of competing more effectively against major carriers in the U.S. aviation market. The combined company would operate a fleet of 195 aircraft and serve 175 airports across the country.
Initially announced with a valuation of approximately $1 billion, the deal still requires approval from shareholders and the U.S. Department of Transportation. Allegiant Travel is the parent company of Allegiant Air, and the merger is intended to strengthen their position in a highly consolidated industry.
Allegiant CEO Greg Anderson expressed optimism about the acquisition, stating, “We are pleased to receive U.S. antitrust clearance from the Department of Justice.” He added that the combination will deliver meaningful benefits for customers and shareholders.
Receiving U.S. antitrust clearance is an important step toward completing the combination of the two airlines. However, details remain unconfirmed regarding the exact reasons for the revised timeline for closing the acquisition.
As the transaction progresses, observers will be watching closely for further developments, particularly regarding shareholder approval and any additional regulatory requirements that may arise.
