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Allegiant Air said Wednesday it has completed its purchase of Sun Country Airlines, finalizing a deal that combines two low-cost carriers as the budget airline industry faces heightened pressure following the recent shutdown of rival Spirit Airlines.
Las Vegas-based Allegiant said the transaction closed after receiving required regulatory and shareholder approvals. When the deal was first announced in January, Allegiant said it was valued at about $1.5 billion, including debt.
“Today marks a defining moment in Allegiant’s history as we officially join forces with Sun Country,” Allegiant CEO Gregory Anderson said in a statement, adding that the new combined airline is positioned to offer broader access to affordable travel.
The acquisition comes as both airlines and travelers contend with a sharp run-up in jet fuel costs driven by the war in the Middle East. Allegiant said the increase is already showing up in higher fares and fees across the industry, with low-cost airlines especially hard hit because they have less room to absorb rising costs.
Allegiant said the expanded network is expected to give travelers more options, particularly in smaller and mid-sized markets. The company said about 195 aircraft would serve nearly 175 cities and more than 650 routes.
For now, Allegiant said travelers should not expect immediate changes. Both airlines will continue to operate separately, and customers can keep booking, checking in and managing trips as they do today.
Allegiant said it will take time to bring the two airlines together. Over 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. Paul, where Sun Country is based, will remain an important hub for the airline.
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