What an Allegiant-Sun Country deal could mean for Amazon Prime Air

If Allegiant were to acquire Sun Country Airlines, as announced over the weekend, one of the most immediate questions would be the future of Sun Country’s cargo operation for Amazon Prime Air.

The proposed deal is a cash-and-stock transaction valued at about $1.5bn, including debt. Allegiant and Sun Country have indicated that the carriers would continue operating separately until they obtain a joint FAA operating certificate. In practical terms, that suggests Sun Country’s Amazon flying could continue under its existing structure for some time even after a deal announcement, while regulatory and operational integration proceeds.

Sun Country operates a fleet of 737 freighters for Amazon under a long-term air transportation services agreement that dates back to 2019 and was amended in 2024. The revised contract runs until 2030, with extension options, and provided for a significant expansion of the cargo fleet during 2025. The Amazon flying has become a core part of Sun Country’s business, providing stable, year-round revenue alongside its seasonal leisure network.

A change of ownership would not automatically unwind that relationship. The Amazon contract includes change-of-control and assignment provisions, meaning the agreement would transfer only with Amazon’s consent and subject to commitments around continuity of service. In practical terms, that gives Amazon substantial leverage over how the cargo operation is managed under any new owner, but it does not imply an automatic termination.

For Allegiant, the Prime Air business would represent a material strategic shift. Allegiant currently operates a pure ultra-low-cost leisure model, while Sun Country’s Amazon flying offers predictable, contracted income insulated from swings in passenger demand. That diversification could be attractive, but it would likely come with limits: Amazon is expected to insist that its flying remains operationally distinct and protected from disruption during any integration process.

Labour and operations would also be sensitive areas. Sun Country’s cargo flying is widely viewed as more stable than leisure passenger operations, and preserving that stability would be critical to maintaining Amazon’s service levels. Any deeper integration, particularly involving crews or fleet management, would likely require careful negotiation.

In short, an Allegiant takeover would not put the Prime Air deal at immediate risk, but it would shift the balance of power. The cargo operation would likely become one of the most valuable, and most constrained, assets Allegiant inherits, with Amazon well positioned to influence how it evolves under new ownership.