Sun Country Airlines Holdings, Inc. SEC 10-Q Report

Sun Country Airlines Holdings, Inc., a prominent player in the airline industry known for its passenger and cargo services, has released its Form 10-Q report for the third quarter. The report highlights significant financial and operational achievements, reflecting the company's robust performance and strategic growth initiatives.

Financial Highlights

Total Operating Revenues: $326.649 million, increased by 5% compared to the same period last year, driven by growth in Passenger and Cargo revenue.

Operating Income: $56.246 million, representing a 2% increase from the previous year, with an Operating Income Margin of 17.2%.

Net Income: $36.535 million, a 3% increase from the prior year, reflecting improved operational efficiency and cost management.

Basic Net Income per share: $0.68, slightly up from $0.67 in the previous year, indicating stable earnings per share performance.

Diluted Net Income per share: $0.66, compared to $0.64 in the previous year, showing a modest increase in diluted earnings per share.

Business Highlights

Revenue Segments

Sun Country Airlines reported a 4% increase in Passenger revenue, driven by a 16% increase in Charter revenue and a 1% increase in both Scheduled Service and Ancillary revenue per passenger. Cargo revenue also saw an 18% increase due to contractual rate escalations.

Geographical Performance

The company's operations are highly concentrated in the U.S., with domestic revenue accounting for the majority of total operating revenues. There was also notable growth in Latin America, contributing to the overall revenue increase.

Sales Units

The company experienced a 4% increase in Scheduled Service departures and a 7% increase in block hours, reflecting operational growth. Charter block hours increased by 11%, driven by increased flying by large program customers and ad hoc flying.

New Product Launches

Sun Country Airlines entered into a new co-branded credit card program agreement, expected to launch in the second half of 2025, which is anticipated to enhance customer loyalty and engagement.

New Production Launches

The company received three additional cargo aircraft under the Amended and Restated Air Transportation Services Agreement with Amazon, with one aircraft already in service. All eight additional aircraft are expected to be in service by the end of the third quarter of 2025.

Future Outlook

Sun Country Airlines plans to continue expanding its cargo operations with Amazon, which aligns with its strategy of long-term flexibility and supports its ability to mitigate the impact of economic and industry downturns. The company also anticipates further growth in its Passenger and Charter segments.

SEC Filing: Sun Country Airlines Holdings, Inc. [ SNCY ] - 10-Q - May. 02, 2025