On April 15, 2026, Allegiant Travel Company (NASDAQ: ALGT) and Sun Country Airlines Holdings, Inc. (NASDAQ: SNCY) announced a significant regulatory milestone as the U.S. Department of Transportation (DOT) granted approval for their joint interim exemption application. This approval allows both airlines to operate as separate entities under common ownership following the closing of their proposed acquisition, pending further action by the DOT.

This development is a pivotal step toward the completion of Allegiant's previously announced plan to acquire Sun Country. The companies expressed optimism that this regulatory green light will facilitate a seamless transition while preserving their distinct business models and customer experiences.

2. Maintaining Independence for Operational Continuity

Under the terms of the DOT's approval, after the acquisition is finalized, Allegiant and Sun Country will maintain their independent operations. This structure is designed to ensure that both airlines can continue to serve their customers effectively while working toward a single operating certificate.

Gregory C. Anderson, CEO of Allegiant, emphasized the importance of this milestone, stating, “This approval underscores the strength of our shared vision and the thoughtful approach both teams have taken throughout this process.” He added that the focus remains on leveraging the strengths of both organizations to position the combined entity for sustainable growth and resilience.

3. Next Steps and Shareholder Meetings

The DOT's exemption grants the last remaining regulatory approval needed for the transaction to close. However, the finalization is still subject to customary closing conditions, including the approval of shareholders from both Allegiant and Sun Country. Special shareholder meetings have been scheduled for May 8, 2026, where shareholders will vote on the proposed transaction. If all conditions are satisfied or waived, the companies anticipate that the acquisition could close as early as May 13, 2026.

4. Commitment to Safety and Service

In conjunction with the regulatory approval, both airlines are committed to ensuring a smooth transition that prioritizes safety, service, and operational excellence. Jude Bricker, President and CEO of Sun Country, expressed gratitude for the DOT's review and approval, stating, “This milestone allows us to move forward with confidence while continuing to serve our customers and communities without disruption.”

5. Conclusion

The approval from the DOT marks a significant step in the ongoing collaboration between Allegiant and Sun Country Airlines. As both companies prepare for the upcoming shareholder meetings, the strategic alignment aims to enhance their operational capabilities while preserving their unique identities in the competitive airline industry. This acquisition could potentially reshape the travel landscape, offering enhanced connectivity and value to customers across both airlines.

As the aviation sector continues to evolve, the successful integration of Allegiant and Sun Country could signal a new era of operational synergy and market competitiveness, benefiting not only shareholders but also the traveling public.

Original press release