LAS VEGAS, Nevada: Allegiant Air said it has completed its acquisition of Sun Country Airlines, creating a larger low-cost carrier as budget airlines contend with rising fuel costs and industry consolidation.

The Las Vegas-based airline said the transaction closed after receiving all required regulatory and shareholder approvals.

When the deal was announced in January, Allegiant said it was valued at about US$1.5 billion, including debt.

"Today marks a defining moment in Allegiant's history as we officially join forces with Sun Country," said Gregory Anderson in a statement. He added that the combined airline is positioned to offer broader access to affordable travel.

The merger comes at a challenging time for discount carriers, which are facing sharply higher jet fuel costs following the war in the Middle East.

Those increases have pushed up fares and fees across the airline industry, while putting particular pressure on low-cost operators that have less flexibility to absorb rising expenses.

The strain contributed to the shutdown of Spirit Airlines on May 2 after 34 years in operation.

In addition to passenger service, Sun Country brings a diversified business model that includes cargo flights for Amazon and charter operations for sports teams, casinos, and the U.S. Department of Defense.

Allegiant said the combined company will operate about 195 aircraft serving nearly 175 cities and more than 650 routes, expanding travel options, particularly in smaller and mid-sized markets.

For now, both airlines will continue to operate separately.

Customers can continue booking flights, checking in, and managing trips as they do today.

Allegiant said integrating the two businesses will take time.

Over the long term, the combined company will operate under the Allegiant name and remain headquartered in Las Vegas.

Minneapolis–St. Paul, where Sun Country is based, will continue to serve as an important hub in the expanded network.

The merger gives Allegiant a broader revenue base and strengthens its position in the increasingly competitive budget airline sector.