Allegiant Completes $1.5B Sun Country Acquisition

Allegiant Air completed its acquisition of Sun Country Airlines on Wednesday, merging two low-cost carriers in a $1.5 billion deal announced in January and finalized after regulatory and shareholder approvals.

The Las Vegas-based company confirmed the transaction closed following satisfaction of customary conditions, including votes from both airlines' shareholders last week and a U.S. Department of Transportation interim exemption in April. "Today marks a defining moment in Allegiant's history as we officially join forces with Sun Country," CEO Gregory Anderson said in a statement. He added that the combined airline is positioned to offer broader access to affordable travel.

The merger arrives amid challenges in the budget airline sector, highlighted by the shutdown of Spirit Airlines on May 2 after 34 years of operation. Spirit's collapse stemmed from years of heavy debt, restructuring efforts, cash flow issues and a recent surge in jet fuel costs linked to the war in the Middle East. Those higher costs have led to fare increases across the industry, with domestic roundtrip prices rising about 19 percent year-over-year to a median of $489, and the cheapest options up nearly 23...