What's Up at the Terminal: ALGT/SNCY; UAL Network Updates; ALK WB Retrofits

Research evidence excerpt

What's Up at the Terminal: ALGT/SNCY; UAL Network Updates; ALK WB Retrofits

USA | Airlines EquityMayResearch17, 2026

What's Up at the Terminal: ALGT/SNCY; UAL

Network Updates; ALK WB Retrofits

What's Up at the Terminal tracks airline news: 1) ALGT completes acquisition

of Sun Country; 2) Multiple UAL network updates incl new routes to Venezuela

& Japan, trims ORD as planned; 3) ALK to add int'l premium economy on

widebodies in '28; 4) AAL forecasts summer travel above '19 levels; and 5) real-

time engine utilization data improved 1.5pts sequentially from trough week in

mid-April.

ALGT Completes Sun Country Acquisition. ALGT completed its acquisition of Sun Country for

approximately $1.5BB including debt. ALGT expects $140MM in annual synergies within three

years, with the deal expected to be EPS accretive one year post-close per mgmt. Both airlines will

continue to operate as separate carriers in the near-term, maintaining their separate brands. The

combined company fleet totals 195 aircraft (all narrowbodies) w/ 30 firm orders and 80 options. In

2025, Allegiant ranked 9th in domestic market share (2.1%) w/ SNCY ranked 11th (0.5%), with the pro

forma airline the 9th largest player in the US market.

UAL Network Announcement Round-Up: UAL is resuming daily nonstop service between Houston

and Caracas, Venezuela in August, marking its return to Venezuela after nearly nine years and

joining AAL as the second US carrier to do so. UAL is also expanding service to Japan by: 1)

launching seasonal service from SFO to Sapporo (marking first non-stop service US-Sapporo);

and 2) launching daily year-round service between Chicago and Tokyo-Narita (only US airline

offering non-stop service from ORD). UAL removed 9K+ departures from its ORD summer schedule