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Allegiant and Sun Country Airlines have new approval from the U.S. Transportation Department (DOT) for their merger and now expect the deal to close as early as May 13.
The milestone, a grant of an exemption by DOT, was announced April 15 and will allow both airlines to continue operating as separate carriers under common ownership after closing. DOT’s approval of the joint interim exemption application satisfies the last remaining regulatory approval-related condition for Allegiant’s acquisition of the Minnesota-based carrier, a deal that was announced in January.
Previously, the cash-and-stock transaction was expected to close in the back half of 2026.
“We appreciate the DOT’s review and approval of our joint request,” Sun Country CEO Jude Bricker said. “This milestone allows us to move forward with confidence while continuing to serve our customers and communities without disruption.”
The transaction remains subject to certain conditions including approval from shareholders, for which special meetings will be held by each brand on May 8. After closing, Allegiant and Sun Country will continue operating independently as they work towards achieving a single operating certificate (SOC), maintaining their respective business models and route networks until that final milestone is complete.
“We remain focused on bringing these organizations together in a way that builds on their strengths, while positioning the combined company for long-term growth and resilience,” Allegiant CEO Gregory Anderson said.
The deal achieved U.S. antitrust clearance in mid-March. Post-close, it is expected to take roughly 14 months for the carriers to obtain an SOC, which consolidates operations, procedures, and safety protocols into one framework.
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