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Stock impact report

Two Low-Cost Airlines Plan to Merge. Wall Street Likes the Deal. [Yahoo! Finance]

Sun Country Airlines Holdings, Inc. (SNCY) 
Company Research Source: Yahoo! Finance
Analysts approved of the move, calling it a "merger of two equally well-run low-fare airlines." Investors see sunshine for Sun Country Airlines stock following news that it plans to merge with another ultra-low-cost carrier. Sun Country ( SNCY ) shares were up some 12% Monday, a day after the airline agreed to combine with fellow ultra-low-cost carrier Allegiant Travel Company ( ALGT ) to "create a leading leisure-focused U.S. airline." Allegiant's stock was down about 6%. (Read Investopedia's live coverage of today's trading here Las Vegas-based Allegiant will acquire Minneapolis-based Sun Country for $1.5 billion in cash and stock, including $400 million of net debt. The deal might not not be the last move to consolidate the domestic low-cost space. Spirit Airlines owner Spirit Aviation ( FLYY ) entered the Chapter 11 restructuring process for the second time in less than a year in late August. Frontier Group ( ULCC ), the parent of Frontier Airlines, replaced longtime CEO Show less Read more
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