Allegiant buying Sun Country Airlines for $1.5 billion

State of play: The Biden administration blocked JetBlue from buying Spirit Airlines, which later filed for bankruptcy, but did allow Alaska Airlines to buy Hawaiian Airlines.

• Spirit and Frontier Airlines reportedly have rekindled old merger talks.

Zoom in: Sun Country stockholders would receive $4.10 per share in cash and 0.1557 in Allegiant stock, which combined represents a 19.8% premium over Friday's closing price.

• The deal is expected to close in the second half of 2026, pending regulatory approvals.
• The combined company would have around 22 million annual customers, serving nearly 175 cities on over 650 routes.
• Allegiant would keep its Las Vegas headquarters, but pledges to maintain a "significant presence" in Minneapolis-St. Paul.

The bottom line: This tie-up isn't too surprising, given that Sun Country CEO Jude Bricker previously spent a decade with Allegiant.