Flightline Briefing 61 - January 15, 2026

What happens when one of the most trusted specialty outdoor retailers, REI Co-op, teams up with the world's largest travel company, Intrepid Travel? You get a unique collection of active trips that offer meaningful, immersive travel experiences in the outdoors.

It’s travel inspired by REI, operated by Intrepid. Think community farm stays in Costa Rica, camping in Joshua Tree’s wild backcountry, cycling in Peru’s Sacred Valley, or sleeping in mountain huts before summiting Mount Kilimanjaro.

So, where will you go? Explore more than 85 destinations worldwide with a small group of up to 16, and an expert local leader who’ll help you to truly experience the destination.

REI Co-op members save 15% on REI Exclusive trips and receive a 20% off coupon to use at REI Co-op after booking REI Recommended trips.

Find your next adventure

_{For T&Cs and to view the full collection of trips in 85+ destinations, visit rei.com/travel.}

News of this came out just as our Monday briefing was being finalized: Allegiant Air (G4) will merge with Sun Country Airlines (SY), in a $1.5 billion strategic consolidation of two of the most profitable leisure-focused carriers in the United States. Under the terms of the deal, Las Vegas (LAS) based Allegiant will acquire Sun Country in a cash-and-stock transaction, eventually retiring the 43-year-old Sun Country brand and integrating its operations into a single platform under the Allegiant name. This combination is particularly unique because of how well the two airlines fit together; while Minneapolis (MSP) based Sun Country maintains a focus on international vacation spots and cargo, Allegiant operates a sprawling point-to-point network connecting small and mid-sized cities to domestic leisure hubs. Consequently, the two airlines have virtually no competitive friction, with only one or two overlapping routes in their combined network of over 650 routes.

This lack of overlap is a major strategic advantage for the merger's regulatory approval, as it expands travel options rather than reducing competition on existing flights. Allegiant gains an immediate, defensible "fortress" presence in the Upper Midwest and inherits Sun Country's lucrative diversified revenue streams, including a long-term cargo contract with Amazon Air and a robust charter business for sports and military clients. For travelers, the merger will eventually lead to a unified loyalty program, combining Sun Country’s 2 million members with Allegiant’s 21 million. While the deal is expected to close in the second half of 2026, the companies will operate as separate entities with independent booking systems until they receive a single operating certificate from the FAA.

The merger is widely interpreted by analysts as a strategic "Plan B" that effectively bypasses the regulatory gridlock of Allegiant’s failed joint venture with Mexican carrier Viva (VB). By acquiring Sun Country, Allegiant moves from a frustrated attempt at a cross-border partnership to direct ownership of an established international platform. This shift allows Allegiant to immediately inherit Sun Country’s 18 international routes to Mexico, Central America, and the Caribbean, fulfilling a long-standing growth ambition that the U.S. Department of Transportation (DOT) had previously stalled. Because the two carriers share a "flexible capacity" philosophy (flying more during peak leisure seasons and less during off-peak times) the integration creates a more resilient powerhouse that is less dependent on the whims of international treaty negotiations.

Beyond the passenger cabin, this merger fundamentally transforms Allegiant’s business model from a pure play/leisure carrier into a diversified aviation conglomerate. The crown jewel of this diversification is Sun Country’s cargo division, which includes a high-margin, long-term contract with Amazon Air. As of 2026, Sun Country has expanded this dedicated freighter fleet to 22 aircraft, providing a stable, counter-cyclical revenue stream that protects the company during downturns in discretionary travel. By folding these operations, along with a robust military and sports charter business, into its own, Allegiant gains the scale and financial stability to compete against the "Big Three" ultra-low-cost carriers (Frontier, Spirit, and Southwest) without the risk of ruinous price wars on overlapping routes.

Delta Air Lines (DL) has placed a firm order for 30 Boeing 787-10 Dreamliners, with options for up to 30 more, marking the carrier’s first direct purchase of the 787 family and a notable rebalancing in its wide-body strategy. Deliveries are scheduled to begin in 2031, positioning the aircraft as a next-decade fleet renewal tool rather than an immediate capacity addition. While Delta and Boeing did not disclose the transaction value, historical catalog pricing for the 787-10 stood at roughly $326 million per aircraft, putting the notional value of the firm order near $9.8 billion, before customary airline discounts. Delta has indicated the aircraft will be deployed primarily on high-demand transatlantic and South American routes, where capacity, fuel efficiency, and premium cabin economics are critical.

The choice of the 787-10 reflects a targeted mission fit rather than a wholesale shift in philosophy. As the largest Dreamliner variant, it offers lower trip costs than older wide-bodies while delivering more seats than the smaller 787-8 and 787-9, making it well suited for trunk long-haul markets. Importantly, the long delivery timeline suggests the order is aimed at early-2030s replacement cycles, particularly as Delta looks ahead to eventual retirements of aging wide-body aircraft, while also preserving flexibility through its sizeable option book.

This Boeing move contrasts with Delta’s more recent Airbus-led long-haul expansion, which has focused on nearer-term deliveries and flagship capability. Delta’s Airbus A350-1000 order, with deliveries beginning in 2026, is designed to anchor premium, ultra-long-haul flying later this decade, while the A330-900neo fleet provides a mid-sized, fuel-efficient workhorse already entering service. Together, the Airbus orders cover Delta’s late-2020s growth and product roadmap, while the 787-10 deal extends planning into the 2030s and restores supplier balance. Rather than a pivot away from Airbus, the 787 order underscores Delta’s long-standing approach of sequencing fleet investments to match network needs, leverage competition between manufacturers, and manage risk across decades.

Delta Air Lines closed its centennial year on a high note, reporting record-breaking financial results for the December quarter and full year 2025. The Atlanta-based carrier generated a full-year operating revenue of $63.4 billion, with a pre-tax profit of $5 billion and a double-digit operating margin. For the fourth quarter specifically, Delta saw operating revenue reach $16.0 billion, a performance bolstered by a seven percent year-over-year growth in premium and diversified revenue streams. Despite navigating a challenging macroeconomic landscape and the lingering effects of a U.S. government shutdown in late 2025, the airline achieved record free cash flow of $4.6 billion for the year, allowing for significant debt reduction and a strengthened balance sheet.

In recognition of these robust results, Delta announced it will distribute $1.3 billion in profit sharing to its more than 100,000 employees on February 13, 2026. This massive payout, equates to nearly nine percent of eligible annual earnings, or more than four weeks of extra pay on average for each employee. CEO Ed Bastian credited the airline’s "differentiation and durability" to the exceptional efforts of the Delta team, noting that this reinvestment in the workforce remains a cornerstone of the company’s culture. Looking ahead to 2026, Delta has set an optimistic trajectory, forecasting 20 percent year-over-year earnings growth as corporate and consumer travel demand continues to accelerate.