Allegiant Travel to Buy Sun Country Airlines for About $1.1 Billion

Allegiant Travel ALGT 2.70%increase; green up pointing triangle reached a roughly $1.1 billion deal to buy Sun Country Airlines as budget-focused U.S. airlines struggle with stiff competition from larger rivals.

The proposed cash-and-stock deal would bring together two carriers that have primarily served price-sensitive, U.S. vacation seekers at the same time that the industry has come under strain. Larger carriers such as United Airlines and Delta Air Lines have deployed their own bare-bones fares to lure bargain hunters while catering to faster-growing demand from well-heeled travelers willing to pay up for extras.