AIR TRAVEL
Allegiant Air and Sun Country complete merger, creating larger budget airline for travelers
Allegiant Air said Wednesday it has completed its purchase of Sun Country Airlines, finalizing a deal that combines two low-cost carriers at a turbulent time for the budget airline industry following the recent shutdown of rival Spirit Airlines. Las Vegas-based Allegiant said the transaction closed after receiving required regulatory and shareholder approvals. When the deal was first announced in January, Allegiant said it was valued at about $1.5 billion, including debt. “Today marks a defining moment in Allegiant’s history as we officially join forces with Sun Country,” Allegiant CEO Gregory Anderson said in a statement, adding that the new combined airline is positioned to offer broader access to affordable travel. The deal comes as both airlines and travelers are grappling with a sharp run-up in jet fuel costs driven by the war in the Middle East, a jump that is already showing up in higher fares and fees across the industry. That increase is hitting low-cost airlines especially hard, since they have less room to absorb rising costs. Along with passenger flights, Sun Country brings into the fold cargo flying for Amazon, as well as charter trips for sports teams, casinos and the US Department of Defense. Allegiant says the expanded network is also expected to give travelers more options, especially in smaller and mid-sized markets, with about 195 aircraft serving nearly 175 cities and more than 650 routes. For now, travelers shouldn’t expect any changes. Both airlines will continue to operate separately, and customers can keep booking, checking in, and managing trips just as they do today. Allegiant said it will take time to bring the two airlines together. Over the long term, the combined company is expected to operate under the Allegiant name and remain headquartered in Las Vegas, while adding new options and connections across its broader network. — ASSOCIATED PRESS
TECH
Mobile carriers join forces to boost coverage in dead zones
AT&T Inc., T-Mobile US Inc., and Verizon Communications Inc. announced a rare joint venture Thursday that aims to make satellite capabilities more widely available to mobile phone customers. The three dominant US carriers agreed to pool their satellite partnerships and spectrum resources to better integrate supplementary service into terrestrial mobile networks. The initiative will ultimately give customers wireless access when they’re off the grid, or in so-called dead zones, where cell networks have limited or no service. The carriers said they have reached the agreement in principle and must still work out operational details, according to a statement. T-Mobile has already teamed up with SpaceX’s Starlink satellite service to fill gaps in its ground-based network. AT&T and Verizon have a similar agreement with AST SpaceMobile Inc., and Verizon is also working with Amazon Leo and Skylo to make the capabilities commercially available. The individual commercial agreements will remain in place, and each carrier will continue to set their own pricing, packaging, and service features. But the three-way partnership will make it easier for satellite providers to develop direct-to-device technology as an industry, instead of each operator having to develop solutions for each individual carrier. It will also carve a path for new satellite providers to enter the market. The companies will be “creating industry specifications to enable a more seamless experience for customers and satellite operators,” according to the statement. — BLOOMBERG NEWS
CARMAKER
Honda posts first ever annual loss after pullback from EVs
Honda Motor on Thursday reported its first annual loss since becoming a publicly traded company in Japan seven decades ago, as the costly retreat from its ambitious electric-vehicle targets plunged earnings into the red. The Japanese automaker reported a net loss of $2.7 billion for the fiscal year ended March 31. Earnings were weighed down by more than $9 billion in restructuring charges and write-downs following a retrenchment of its EV strategy. It is the first loss that the 77-year-old company has reported since listing on the Tokyo Stock Exchange in 1957. The sharp downturn underscores the extent to which Honda — and many other automakers that poured billions into electric vehicles — has been buffeted by cooling demand. Just five years ago, Honda was racing to catch up to Tesla and Chinese rivals such as BYD in building electric cars. It pledged to make its entire lineup electric or hydrogen-powered by 2040, a break from other Japanese automakers like Toyota, which continued to throw its weight behind hybrid and gasoline-powered cars. Honda began allocating billions to develop battery-powered cars both in-house and in partnerships with General Motors and Sony. However, consumers were not quite ready. After an initial wave of early adopters propped up sales, some other mainstream buyers balked, largely because of lingering concerns about charging infrastructure and high sticker prices. Then, last year, federal subsidies for many electric models were effectively gutted under the Trump administration. In 2025, electric vehicle sales fell about 4 percent from a year earlier in the United States, Honda’s biggest automotive market. That ended a half-decade-long, record-breaking growth streak for electric cars. The slowdown has also weighed on American majors. Earlier this year, Ford said its electric-vehicle division lost $4.8 billion in 2025 and would likely continue to lose money for at least two more years. In March, Honda CEO Toshihiro Mibe announced the cancellation of three major electric models originally destined for the North American market. An affordable line that Honda was developing with General Motors and a software-laden vehicle it was co-developing with Sony have been put on ice. — NEW YORK TIMES
HOUSING
Average US long-term mortgage rate eases to 6.36 percent in first drop after two straight weekly increases
The average long-term US mortgage rate edged lower after rising the previous two weeks. The benchmark 30-year fixed rate mortgage rate fell to 6.36 percent from 6.37 percent last week, mortgage buyer Freddie Mac said Thursday. One year ago, the rate averaged 6.81 percent. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also eased this week. That average rate fell to 5.71 percent from 5.72 percent last week. A year ago, it was at 5.92 percent, Freddie Mac said. Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. As recently as late February, the average rate on a 30-year mortgage had slipped just under 6 percent for the first time since late 2022. It’s hasn’t fallen below that threshold since. Mortgage rates have been mostly trending higher since the war with Iran began. The closure of the Strait of Hormuz has roiled energy markets, sending crude oil prices sharply higher — a key driver of inflation. Expectations of higher oil prices have pushed up the yield on the 10-year Treasury note, which lenders use as a guide to pricing home loans. — ASSOCIATED PRESS
ARTIFICIAL INTELLIGENCE
Lawyers for Elon Musk and OpenAI make their final case in a trial that could shape AI’s future
Lawyers for Elon Musk and OpenAI made their final arguments Thursday in the landmark trial whose outcome could shape the future of artificial intelligence. Musk, the world’s richest man, was a co-founder of OpenAI, which started in 2015 and went on to create ChatGPT. His lawsuit filed in 2024 accuses OpenAI CEO Sam Altman and his top deputy of betraying a plan to keep it as a nonprofit and shifting into a moneymaking mode behind his back. The trial’s outcome could sway the balance of power in AI — breakthrough technology that increasingly has raised fears about its potential impacts on the economy, society, and even humanity’s survival. Scrutiny of Altman’s leadership comes at a crucial time for the company and its competitors, Musk’s own AI firm and Anthropic, formed by a group of seven ex-OpenAI leaders. All three firms are moving toward planned initial public offerings that are expected to be among the largest ever. Musk is seeking damages and changes to OpenAI’s business structure, as well as Altman’s ouster from company leadership. If Musk wins, it could derail OpenAI’s IPO plans. — ASSOCIATED PRESS