Allegiant’s president outlines Sun Country merger strategy

Allegiant Air’s prospects look bright.

The Las Vegas-based budget carrier closed a $1.5 billion merger with Sun Country Airlines on May 13. The combination creates a national leisure airline with a nearly 3% share of U.S. domestic seats. That may sound small, but it includes enviable market positions in places like Minneapolis-St. Paul International Airport (MSP) and airports across Florida, schedule data from aviation analytics firm Cirium shows.

“Immediately, customers can now find flight options for both carriers on each of the Allegiant and Sun Country websites,” Robert Neal, president of Allegiant, said in an interview. “Over time, the plans are to become one Allegiant brand intent to grow capacity and grow our service into the Minneapolis-St. Paul market.”

For now, Allegiant will fly Allegiant flights, and Sun Country will fly Sun Country flights as the airlines slowly integrate over the next 12 to 18 months, he explained.

That is not to say some changes aren’t coming, especially for loyal Sun Country flyers in the Twin Cities.

Neal, at least, thinks those changes will be good.

Allways Rewards vs. Sun Country Rewards

The Allegiant Allways Rewards and Sun Country Rewards loyalty programs will, eventually, merge. “When?” and “How?” are the questions.

First, Neal said, the airline needs to negotiate a new cobranded credit card deal with the banks that currently issue each loyalty program’s card — Bank of America for Allegiant and Synchrony Bank for Sun Country.

“The vision is one, larger loyalty program that offers customers more opportunities to earn and burn, [and] more access to more destinations,” he said.

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What makes sense, Neal admitted, is to bring Sun Country Rewards members into Allways Rewards rather than build an entirely new loyalty program, as Alaska Airlines did with Atmos Rewards following its 2024 merger with Hawaiian Airlines.

New MSP routes

The Sun Country network is really about MSP. After Delta Air Lines, Sun Country is a strong No. 2 at the airport — a position it has held for decades. And, as a result of the merger, MSP is immediately Allegiant’s largest base by any metric, Cirium schedule data shows. Orlando Sanford International Airport (SFB) is second by a good margin.

Allegiant plans to eventually expand on Sun Country’s existing network at MSP with more flights to leisure destinations, Neal said.

“Sun Country has a very large fleet based at MSP and, in the morning, nearly all those planes leave and then the gates sit empty for a few hours until they come back,” he said. “There’s a natural opportunity to fill in some of that capacity with aircraft originating at Allegiant bases around the country.”

That could mean new service to MSP from places like SFB, Mesa Gateway Airport (AZA) near Phoenix or Punta Gorda Airport (PGD) in Florida.

The 737 MAX for growth

Key to Allegiant’s expansion plans following the Sun Country merger is the Boeing 737 MAX. The airline flew 17 of the 190-seat 737-8200 model at the end of March. There are 10 more due in 2026 and another 33 by the end of 2028, according to its latest fleet plan.

Sun Country flies 72 737s, including 20 freighters under contract for Amazon, its latest fleet plan shows. The airline has no outstanding aircraft orders.

“Now both carriers can benefit from the economics of the 737 MAX, especially in environments like the high fuel one that we’re facing today,” Neal said.

Allegiant’s 737-8200s fly from bases at Fort Lauderdale-Hollywood International Airport (FLL), McGhee Tyson Airport (TYS) in Knoxville, Tennessee, SFB and St. Pete–Clearwater International Airport (PIE) in Florida, Cirium schedules show.

Filling Spirit’s gap

Allegiant is taking a conservative approach to fill some of the market void left by the collapse of Spirit Airlines May 2. Earlier in May, the discounter announced four new routes from FLL to Boston Logan International Airport (BOS), Kansas City International Airport (MCI), Omaha Eppley Airfield (OMA) and Pittsburgh International Airport (PIT). Other airlines, including Frontier Airlines and JetBlue Airways, are moving more aggressively with dozens of new routes and flights.

“We’ve had interest growing in the Fort Lauderdale market for some time, with or without Spirit being there,” Neal said.

He also highlighted the strong performance of Allegiant’s flights at Atlantic City International Airport (ACY), where the airline landed in December. Breeze Airways has also been making a move for ACY, adding four new routes since Spirit’s collapse.

Asked if Allegiant was considering expanding in Spirit’s former base at Detroit Metropolitan Airport (DTW), Neal said nothing immediately.

“There’s an opportunity for something like what Sun Country has in Minneapolis in a place like Detroit,” he said.

Allegiant does not currently serve DTW, while Sun Country only serves it twice weekly from MSP, according to Cirium schedules.

One thing travelers do not need to worry about from the Allegiant-Sun Country merger is another Spirit. Both airlines reported profits in the first quarter and, while managing the same high fuel prices, they are carrying far less debt than their defunct peer.

Neal is bullish on the outlook even with high fuel prices.

“The demand environment, particularly throughout the summer, has remained really, really strong,” he said.

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