Allegiant Air has completed its acquisition of Sun Country Airlines, three months after the two US carriers agreed to combine in a cash and stock deal valued at $1.5 billion. The combined company will be headquartered in Las Vegas, where Allegiant is based, and maintain a presence in Minneapolis-St Paul, which has been home to Sun Country. In April, the US Department of Transportation approved the carriers' plan to operate separately under common ownership after the closing of their merger deal, while advancing toward a single operating certificate. In the near term, the airlines will operate as separate carriers using their respective brands, Allegiant says. The transaction closed following receipt of required regulatory approvals and shareholder approval. "Today marks a defining moment in Allegiant's history as we officially join forces with Sun Country to create the leading leisure-focused airline in the United States," Allegiant chief executive Gregory Anderson states. He adds that the carriers have a combined fleet of 195 aircraft serving nearly 175 cities. The combined company intends to expand "access to affordable, reliable, and convenient travel for the communities that have long been the foundation of our business, while offering customers broader reach and more destinations", Anderson says. Anderson will serve as the combined company's chief executive. Allegiant chief financial officer Robert Neal will continue in that role. Joining the board of the combined company are Jude Bricker, who served as Sun Country chief executive, and Jennifer Vogel and Thomas Kennedy, who until the closing of the deal had been Sun Country board members.

Lufthansa intends to exercise its option to acquire a majority stake in ITA Airways. The group will increase its shareholding in the Italian carrier from 41% to 90% "as early as" June, says chief executive Carsten Spohr. The transaction is set to close at the previously agreed purchase price of €325 million ($382 million). Lufthansa notes that the stake increase is subject to regulatory approvals, primarily from the European Commission and the US Department of Justice and foresees completion in the first quarter of 2027. Thereafter, ITA will be "fully integrated into the Lufthansa Group, both organizationally and financially", adds the group. The additional stake's seller is the Italian ministry of economy and finance. Lufthansa says the ministry will continue to hold the remaining 10% of shares in ITA. From 2028, this tranche may also be acquired by Lufthansa, it notes. "Following the acquisition of the first 41% stake in ITA Airways last year, we promised the fastest airline integration in our history," states Spohr. "We aimed to complete all major integration steps into the Lufthansa Group within just 18 months. "We have not only kept this promise. We were even faster: all customer-facing interfaces are already integrated today – with the exception of North Atlantic flights, where, as is well known, regulatory approval for our merger is still pending." He says Lufthansa is meanwhile "progressing" in the cargo business. Since last year, Lufthansa Cargo has been marketing ITA's cargo capacity, which corresponds to the additional capacity of three Boeing 777 Freighters.

US airline fares were up 21% year on year in April, and 6.3% versus the previous month, data from the US Bureau of Labor Statistics indicates. Fares have been raised by carriers seeking to recoup the higher cost of jet fuel amid the ongoing Iran war. Meanwhile, energy costs for US consumers increased 18% year on year in April and were likewise up 6.3% from March levels. The "all items" consumer price index, commonly used as a measure of US inflation, rose 3.8% during the 12 months ended in April, compared with 3.3% for the 12 months ended in March.