Allegiant Travel is acquiring Sun Country in a $1.5 billion deal to create a leading leisure-focused airline in the U.S. The deal includes debt and aims to combat rising costs post-pandemic. Allegiant and Sun Country focus on cost-conscious travelers and sun destinations, with Sun Country also flying charters for Amazon.

Sun Country shares surged 10% after the acquisition announcement, with Allegiant offering a premium of almost 20% per Sun Country share. Allegiant shareholders will own 67% of the combined company, with the deal expected to close in the second half of the year pending regulatory approval. The airlines expect minimal route overlap.

In contrast, the Biden administration blocked JetBlue’s acquisition of Spirit Airlines due to antitrust concerns. Spirit, in its second bankruptcy in less than a year, has engaged in merger talks with Frontier Airlines. However, Alaska Air’s $2 billion acquisition of Hawaiian Airlines was approved by the administration in 2024.

Read more at CNBC: Allegiant to buy Sun Country in $1.5 billion cash and stock deal