Allegiant Travel to Acquire Sun Country in Merger

Allegiant Travel Company ( (ALGT) ) has issued an update.

On January 11, 2026, Allegiant Travel Company signed a definitive cash-and-stock merger agreement to acquire Sun Country Airlines at an implied value of $18.89 per share, a roughly 19% premium to Sun Country’s prior close, valuing the target at about $1.5 billion including net debt and leaving Allegiant and Sun Country shareholders with approximately 67% and 33% of the combined company, respectively. Each Sun Country share will convert into $4.10 in cash plus 0.1557 Allegiant shares, while Sun Country’s equity awards will be rolled into Allegiant instruments or cashed out, Sun Country stock will be delisted from Nasdaq upon closing, and three Sun Country‑designated directors, including CEO Jude Bricker, will join an expanded Allegiant board; the deal, which is subject to shareholder approvals, multiple U.S. aviation and antitrust regulatory clearances, and standard closing conditions and termination-fee protections, is expected to create a leading leisure-focused U.S. airline with complementary route networks, expanded international reach, stronger charter and cargo operations, a larger loyalty program and targeted annual synergies of about $140 million by year three, with management positioning the combination as enhancing reliability, growth prospects and long-term value for customers, employees and investors.

The most recent analyst rating on (ALGT) stock is a Hold with a $95.00 price target. To see the full list of analyst forecasts on Allegiant Travel Company stock, see the ALGT Stock Forecast page.

Spark’s Take on ALGT Stock

According to Spark, TipRanks’ AI Analyst, ALGT is a Neutral.

Allegiant Travel Company receives a moderate overall stock score of 58. The most significant factor is the company’s financial performance, which is currently weak due to negative profitability and high leverage. However, strong technical indicators and positive corporate events, such as debt reduction, provide some optimism. The earnings call guidance and strategic initiatives suggest potential improvements, but the current valuation remains challenging.

To see Spark’s full report on ALGT stock, click here.

More about Allegiant Travel Company

Allegiant Travel Company is a U.S. leisure-focused airline operator that emphasizes affordable, reliable service from small and mid-sized, often underserved communities to premier vacation destinations, while Sun Country Airlines is a low‑cost leisure carrier with a diversified model spanning scheduled service, charter operations and cargo. Together, the two NASDAQ‑listed airlines serve about 22 million annual customers across nearly 175 cities on more than 650 routes with a combined fleet of 195 aircraft, and maintain a significant presence in markets such as Minneapolis–St. Paul and key U.S. and international holiday destinations.

Average Trading Volume: 313,639

Technical Sentiment Signal: Buy

Current Market Cap: $1.69B

See more insights into ALGT stock on TipRanks’ Stock Analysis page.