What Changes Can Travelers Expect from the Allegiant and Sun Country Merger?

The merger between Allegiant and Sun Country Airlines is poised to reshape the landscape of airline loyalty programs and co-brand credit cards. The dominant mechanism at play is the integration of loyalty programs, which will likely streamline benefits and rewards for customers, enhancing customer retention and acquisition. This integration will be operationally driven by decisions made by the combined airline's management regarding how to harmonize existing loyalty frameworks and card partnerships. For example, the timing of these decisions will be critical, as they must align with the merger's completion in the second half of 2026. A significant change that could alter outcomes would be a shift in regulatory approval processes, which could delay or complicate the merger. However, even with regulatory changes, the binding constraint remains the operational capacity to effectively merge the loyalty systems, as each airline has distinct customer bases and program structures. This does NOT guarantee that the new loyalty program will automatically appeal to all existing customers, as differing expectations and experiences could lead to dissatisfaction among some members. Ultimately, the success of the merger hinges on how well the airlines can navigate these complexities while maintaining customer loyalty.