Core Insights - Sun Country Airlines reported its fourteenth consecutive profitable quarter and fifth consecutive year of profitability, with Q4 2025 total revenue reaching $281.0 million, the highest fourth quarter on record [1][2] - The company achieved a full year total revenue of $1.13 billion for FY 2025, also the highest full year on record [1][2] Financial Performance - Q4 2025 GAAP diluted EPS was $0.15, while adjusted diluted EPS was $0.17, reflecting a decrease from $0.24 in Q4 2024 [1][3] - For FY 2025, GAAP diluted EPS remained stable at $0.96, with adjusted diluted EPS increasing to $1.10 from $1.05 in FY 2024 [1][4] - Total operating revenue for Q4 2025 increased by 7.9% compared to Q4 2024, while operating income decreased by 30.3% [3][4] Operational Highlights - The company expanded its cargo fleet by eight aircraft, which required adjustments in its scheduled service network, leading to a 9.8% decrease in scheduled service capacity [2][5] - Scheduled service TRASM grew by 8.9% year-over-year, driven by strong demand despite reduced capacity [5][8] - Cargo revenue surged by 67.9% in Q4 2025, primarily due to the additional cargo aircraft [9] Cost and Efficiency - Q4 2025 GAAP operating expenses increased by 12.1%, while CASM rose by 19.1% due to headcount growth and increased maintenance costs [10][30] - The company reported an operating income margin of 6.5% for Q4 2025, down from 10.0% in Q4 2024 [4][40] Balance Sheet and Liquidity - As of December 31, 2025, total liquidity was $302.8 million, with net debt at $364.0 million [12][32] - Cash and cash equivalents increased to $144.7 million from $83.2 million in the previous year [12][32] Future Outlook - Sun Country announced plans to open a new operational base at Cincinnati/Northern Kentucky International Airport in early 2026, which is expected to enhance operational efficiencies [11] - The company is set to merge with Allegiant, with the transaction expected to close in the second half of 2026, pending regulatory approvals [15][16]

Every year we use data to rank major airlines from best to worst. In 2025, we had a clear winner. Of the nine airlines we evaluated, Southwest was our top finisher.It had the fewest customer complaints and tarmac delays. Budget airline Allegant came in second and Delta came in third after a 4-year winning streak. For Delta, flight cancellations, tarmac delays, and submissions to the Department of Transportation hurt its standing.In the middle of the pack, we have Alaska and Spirit, though there's a wide gap ...

Summary of Allegiant's Acquisition of Sun Country Airlines Conference Call Industry and Companies Involved - **Industry**: Airline Industry - **Companies**: Allegiant Air (NasdaqGS: ALGT) and Sun Country Airlines (NasdaqGS: SNCY) Core Points and Arguments 1. **Merger Announcement**: Allegiant announced a definitive agreement to acquire Sun Country in a cash and stock transaction valued at approximately $1.5 billion, with an implied value of $18.89 per Sun Country share, representing a 19.8% premium over its closing price on January 9, 2026 [4][14][15]. 2. **Strategic Fit**: The merger aims to combine two complementary airlines focused on leisure travel, enhancing revenue streams and operational efficiencies. Both companies have a history of strong financial returns and growth potential [4][6][19]. 3. **Cultural Alignment**: Allegiant and Sun Country share similar operational philosophies and cultural values, which are expected to facilitate a smooth integration process [22][23]. 4. **Financial Synergies**: The merger is projected to generate $140 million in annual synergies, with potential for upside as the companies integrate [11][27][30]. 5. **Network Expansion**: The combined airline will serve approximately 22 million passengers annually, expanding access to leisure travel across nearly 175 communities [19][20]. 6. **Cargo and Charter Operations**: Sun Country's cargo partnership with Amazon is a significant revenue contributor, and the merger will enhance charter operations, providing additional revenue stability [8][9][64]. 7. **Operational Efficiency**: Both airlines utilize a flexible capacity model, allowing them to adjust operations based on demand, which is expected to improve asset productivity and margin performance [17][19][24]. 8. **Leadership Structure**: Post-merger, Allegiant's CEO Greg Anderson will continue in his role, while Sun Country's CEO Jude Bricker will join the board and act as an advisor during the transition [15][16]. Important but Potentially Overlooked Content 1. **Employee Impact**: The merger is expected to create more career opportunities for employees, with a focus on maintaining operational stability and continuity during integration [10][32]. 2. **Regulatory Approval**: The transaction is subject to customary closing conditions, including regulatory and shareholder approvals, with an expected close in the second half of 2026 [15][36]. 3. **Integration Risks**: Key risks include cultural integration, technological challenges, and maintaining operational stability. A dedicated integration management office has been established to oversee the process [46][47]. 4. **Fleet Management**: The combined fleet will have significant embedded equity value, allowing for flexible and efficient capacity deployment, which is crucial for maintaining competitive advantage [25][42]. 5. **Market Positioning**: The merger positions the combined entity as a leader in the flexible leisure travel sector, with a conservative balance sheet compared to other leisure carriers [23][30]. This summary encapsulates the key points discussed during the conference call regarding the merger between Allegiant and Sun Country Airlines, highlighting the strategic rationale, expected synergies, and potential challenges ahead.

Transaction Announcement January 12, 2026 #FD8103 #005595 #FFD105 #394B5D #38AC49 #FD8103 #394B5D Cautionary Statement Regarding Forward-Looking Statements This communication contains forward-looking statements under the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, Section 27A of the Securities Act of 1933 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and often can be identified by th ...

Core Viewpoint - Allegiant is set to acquire low-cost airline Sun Country for approximately $1.5 billion, utilizing a combination of cash and stock [1] Group 1: Acquisition Details - Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash per share, implying a value of $18.89 per share [1] - The acquisition is characterized by low route network overlap between Allegiant and Sun Country, which may facilitate regulatory approval [1] Group 2: Management Perspective - Allegiant's CEO, Greg Anderson, expressed confidence in obtaining approval for the transaction, highlighting the continuation of Sun Country's contract flying business with Amazon [1] Group 3: Regulatory Context - This acquisition will test the Trump administration's approach to airline industry mergers, especially in light of the Biden administration's previous antitrust actions against JetBlue's acquisition of Spirit Airlines, while approving Alaska Air's acquisition of Hawaiian Airlines [1] - Allegiant initiated discussions with Sun Country in late fall of the previous year [1]

Group 1 - Allegiant will acquire Sun Country Airlines in a deal valued at approximately $1.5 billion, including debt, with Sun Country shareholders receiving 0.1557 Allegiant shares and $4.10 in cash for each share, valuing the stock at $18.89, a premium of about 19.8% to its previous close of $15.77 [1][2] - The acquisition will expand the combined company's network, adding more destinations across the US and international markets, with a fleet of about 195 aircraft [2][3] - The combined company is expected to generate $140 million in annual synergies by the third year after closing, and the transaction will be accretive to earnings per share in the first year [2] Group 2 - Upon closing, Allegiant and Sun Country shareholders will own approximately 67% and 33% of the combined company, respectively [4] - Allegiant CEO Gregory Anderson will lead the combined company as CEO, while Robert Neal will serve as president and CFO, and Sun Country CEO Jude Bricker will join the board of directors [4] - The deal is anticipated to close in the second half of 2026 [2][5]

Core Viewpoint - Budget air carriers Allegiant and Sun Country Airlines will merge, indicating a trend towards consolidation in a highly competitive airline industry [1] Company Summary - Allegiant and Sun Country Airlines are both budget air carriers [1] - The merger represents a strategic move to enhance competitiveness within the industry [1] Industry Summary - The airline industry is experiencing significant consolidation as companies seek to strengthen their market positions [1] - This merger is part of a broader trend in the industry, reflecting ongoing competitive pressures [1]

Group 1 - Allegiant is acquiring Sun Country in a cash deal valued at $1.5 billion [1] - The acquisition implies a value of $18.89 per share for Sun Country, with shareholders receiving 0.1557 shares of Allegiant stock and $4.10 in cash for each share [1] - The deal represents a nearly 20% premium over Sun Country's closing stock price prior to the announcement [2] Group 2 - The merger will test the current administration's stance on airline consolidations, following previous challenges to other airline mergers [2] - The Biden administration previously blocked JetBlue Airways' acquisition of Spirit Airlines, indicating a cautious regulatory environment for airline mergers [2]

Group 1 - Allegiant Airlines is set to acquire Sun Country Airlines in a transaction valued at approximately $1.5 billion, which includes debt [1]

Group 1 - The proposed deal aims to merge two carriers that primarily cater to price-sensitive domestic vacationers [1] - This business model has faced challenges and is under strain in the current market environment [1]