Allegiant Air said it will acquire Sun Country Airlines in a cash-and-stock deal valued at about $1.5 billion, including debt, in a move combining two low-cost U.S. carriers focused on leisure travel.
Executives at both carriers said their route networks complement each other and that the larger airline would increase affordable travel options for passengers. The merged airline will serve about 175 cities with more than 650 routes and a fleet of roughly 195 aircraft, the companies told investors Monday.
