Allegiant Air Completes Acquisition of Sun Country Amid Industry Turbulence
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Delta CEO Bastian Talks Consumer Demand, Fuel Costs and Spirit Delta Air Lines CEO Ed Bastian discusses consumer demand, the effects of rising jet fuel costs and Spirit's collapse, and potential industry consolidation with Caroline Hyde on Bloomberg Television. (Source: Bloomberg)
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The deal comes as both airlines and travelers are grappling with a sharp run-up in jet fuel costs driven by the war in the Middle East, a jump that is already showing up in higher fares and fees across the industry. That increase is hitting low-cost airlines especially hard, since they have less room to absorb rising costs.
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Washington Times BusinessThe deal comes as both airlines and travelers are grappling with a sharp run-up in jet fuel costs driven by the war in the Middle East, a jump that is already showing up in higher fares and fees across the industry. That increase is hitting low-cost airlines especially hard, since they have less room to absorb rising costs.
CNBCAnderson said demand continues to be robust, even from the carrier's more budget-minded leisure customers, despite the spike in jet fuel costs. The industry is facing billions of dollars in added costs from expensive jet fuel that has roughly doubled since U.S.-Israel attacks on Iran began in February. Jet fuel is typically airlines' second-biggest cost after labor, and carriers have been hiking fares to pass along the cost to customers.
FortuneThe real crunch will come in the fall, if the U.S. is still at war with Iran, Raiff said. That’s because jet fuel and home heating oil are similar products and refineries can make both. The extra demand on the heating oil market may put pressure on the air travel market, he said.
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LAS VEGAS — Allegiant Air said Wednesday it has completed its purchase of Sun Country Airlines, finalizing a deal that combines two low-cost carriers at a turbulent time for the budget airline industry following the recent shutdown of rival Spirit Airlines.
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New York Post BusinessBy Associated Press Published May 13, 2026, 8:48 p.m. ET Allegiant Air said Wednesday it has completed its purchase of Sun Country Airlines, finalizing a deal that combines two low-cost carriers at a turbulent time for the budget airline industry following the recent shutdown of rival Spirit Airlines.
CNBCAllegiant Travel Co.'s acquisition of Sun Country Airlines closed on Wednesday, and the chief executive of the combined company, Greg Anderson, said Allegiant Air will continue to stand out despite industry turmoil, including a surge in jet fuel costs.
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The pressure was especially acute for Spirit Airlines. The ultra low-cost carrier shut down after 34 years May 2, its collapse accelerated by the sharp rise in fuel costs following years of financial strain, including heavy debt, repeated restructuring efforts and ongoing cash-flow problems.
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Washington Times BusinessThe pressure was especially acute for Spirit Airlines. The ultra low-cost carrier shut down after 34 years May 2, its collapse accelerated by the sharp rise in fuel costs following years of financial strain, including heavy debt, repeated restructuring efforts and ongoing cash-flow problems.
CNBCThe close of the acquisition comes just weeks after once fast-growing budget carrier Spirit Airlines shut down in the biggest U.S. airline collapse in a generation.
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Allegiant says the expanded network is also expected to give travelers more options, especially in smaller and mid-sized markets, with about 195 aircraft serving nearly 175 cities and more than 650 routes.
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Washington Times BusinessAllegiant says the expanded network is also expected to give travelers more options, especially in smaller and mid-sized markets, with about 195 aircraft serving nearly 175 cities and more than 650 routes.
CNBCThe combined carrier, which Allegiant said will serve about 175 cities with over 650 routes, will continue to be surgical about capacity growth, Anderson said. He said that strategy has insulated the airlines from some of the trouble that other low-cost airlines have faced.
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For now, travelers shouldn’t expect any changes. Both airlines will continue to operate separately, and customers can keep booking, checking in and managing trips just as they do today.
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Washington Times BusinessFor now, travelers shouldn’t expect any changes. Both airlines will continue to operate separately, and customers can keep booking, checking in and managing trips just as they do today.
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Minneapolis–St. Paul, where Sun Country is based, will remain an important hub for the airline.
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Washington Times BusinessMinneapolis–St. Paul, where Sun Country is based, will remain an important hub for the airline.
2 details only one outlet reported
Independent claims that didn't surface elsewhere in our corpus. Treat as supplementary — not corroborated across outlets.
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01 Fortune There is no jet fuel shortage, according to Greg Raiff, CEO of private jet services company Elevate Jet.
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02 CNBC Allegiant's plan includes ramping up service during peak travel periods, like in the summer or over spring break, and then dialing that back on Tuesdays and Wednesdays in lower-demand weeks, selling more seats to customers at times when the airline could have more pricing power, Anderson said.
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Sources (5)
- cnbc
- bloomberg
- fortune
- nypost-biz
- washtimes-biz