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DOJ Clears Allegiant Travel’s Planned Acquisition of Sun Country Airlines

By  |  March 16, 2026

The U.S. Department of Justice has granted antitrust clearance for Allegiant Travel’s planned acquisition of Sun Country Airlines, allowing the companies to move closer to finalizing the transaction. The approval enables the airlines to accelerate their expected timeline for completing the deal, according to a statement released by Allegiant Travel on 16 March.

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    Allegiant Travel, the parent company of discount carrier Allegiant Air, announced that it has received “U.S. antitrust clearance” from federal regulators. The clearance represents a significant milestone in the merger process, according to a statement from the company, as it removes a key regulatory hurdle required before the acquisition can proceed.

    Following the approval, Allegiant now expects the acquisition to close in either the second or third quarter of this year, earlier than the previous estimate of the second half of 2026. The company did not provide an explanation for the revised timeline and did not respond to inquiries about the change, according to a statement.

    Allegiant also reported that the mandatory waiting period required under U.S. merger law has been terminated early, per a statement. Under federal law, companies involved in mergers are typically prohibited from completing a deal until a waiting period — generally around 30 days — expires. The period is designed to give regulators time to review whether a proposed merger could violate antitrust rules. However, the waiting period can be ended sooner if government authorities grant clearance.

    Read more: Boosting Competition in International Aviation

    “Receiving U.S. antitrust clearance is an important step toward completing the combination of the two airlines,” Allegiant said in a statement. The company added that the transaction still requires approval from shareholders as well as authorization from the US Department of Transportation, according to a statement.

    Officials at the Department of Justice did not immediately respond to a request seeking confirmation that the agency had approved the transaction.

    The proposed deal would see Allegiant acquire Minneapolis-based Sun Country Airlines using a mix of cash and stock valued at about $850 million based on Allegiant’s current share price, according to a statement. When the acquisition was first announced, the companies estimated the transaction’s value at approximately $1 billion.

    The airlines have said the merger is intended to strengthen their position in the US aviation market, where a handful of large carriers dominate the industry. By combining operations, the companies aim to build a larger discount airline capable of competing more effectively against those major competitors, according to a statement.

    If completed, the merged company would operate a fleet of 195 aircraft and serve 175 airports, according to a statement, expanding the reach of the combined airline network across the United States.

    Source: Flight Global