Huge Budget Airline Merger
Two budget airlines just got bigger…
Allegiant and Sun Country Airlines are merging in a $1.5 billion deal.
The airlines will eventually operate under the Allegiant brand - but for now, customers can keep booking travel with each airline.
“There are no changes to current reservations, flight schedules, or travel plans,” according to an Allegiant press release yesterday.
The deal still requires regulatory approval, which makes things interesting.
The Department of Justice famously blocked the JetBlue and Spirit merger back in 2024, but that was under a different administration and is worth noting.
Speaking of, news has been going around that JetBlue is also in a tough situation, with six consecutive years of losing money and mounting debt of $9 billion.
A JetBlue merger or buyout from another airline would not be surprising.
We have a new reality of the airline industry recently, specifically budget airlines:
Spirit Airlines fails earlier this year
Allegiant & Sun Country merge
JetBlue is in a financial crisis
Typically, less competition on airports and routes leads to higher prices.
We don’t like to see mergers in the industry (United and American Airlines for example), but these smaller carriers likely need to do so for company survival in the long term.