Allegiant Air completes purchase of Sun Country Airlines
AP News • • business
Key Points:
- Allegiant Air has completed its $1.5 billion acquisition of Sun Country Airlines, combining two low-cost carriers amid industry challenges following Spirit Airlines' recent shutdown.
- The deal, finalized after regulatory and shareholder approvals, aims to expand affordable travel options and strengthen revenue streams through passenger flights, cargo services for Amazon, and various charter operations.
- Rising jet fuel costs driven by the Middle East conflict have severely impacted low-cost airlines, contributing to Spirit Airlines' collapse due to financial strain and increased expenses.
- The combined airline will maintain separate operations initially, with plans to eventually operate under the Allegiant name, headquartered in Las Vegas, while keeping Minneapolis–St. Paul as a key hub.
- The expanded network will serve about 175 cities with nearly 195 aircraft and over 650 routes, enhancing connectivity especially in smaller and mid-sized markets.