Sun Country Airlines Reports Second Quarter 2025 Results
Revenue of $264 million, highest second quarter on record(1)GAAP diluted EPS of $0.12, operating income of $16 million and margin of 6.2%Adj. diluted EPS(2) of $0.14, adj. operating income(2) of $18 million and margin(2) of 6.8%
MINNEAPOLIS, July 31, 2025 (GLOBE NEWSWIRE) -- Sun Country Airlines Holdings, Inc. ("Sun Country Airlines," "Sun Country," the "Company") (NASDAQ:SNCY) today reported financial results for its second quarter ended June 30, 2025.
"Sun Country is pleased to report our twelfth consecutive profitable quarter with GAAP EPS of $0.12 and adjusted diluted EPS of $0.14(2)," said Jude Bricker, President and Chief Executive Officer of Sun Country. "We are steadily incorporating our eight additional cargo aircraft throughout the second and third quarters. As of the end of the second quarter, we had 15 cargo aircraft in service and expect all 20 freighters to be in-service by the end of the third quarter. As of today, all eight of the additional cargo aircraft have been delivered to us and five are in-service, bringing our in-service cargo aircraft to 17. To successfully accommodate this growth in cargo, we reduced our passenger service business as demonstrated by the 3.9% decline in total ASMs, with a notable reduction of our scheduled service business as demonstrated by the 6.2% decline in scheduled service ASMs. That being said, we have seen healthy demand with scheduled service TRASM(3) increasing 3.7% and total fare increasing 6.5% versus the second quarter last year. This has contributed to a second quarter GAAP pre-tax margin of 3.2% and an adjusted pre-tax margin(2) of 3.9%, which grew by 2.0 and 2.1 percentage points year-over-year respectively. This is another terrific result produced by our dedicated and hard-working employees who delivered in a challenging environment."
Overview of Second Quarter
Three Months Ended June 30,
(unaudited) (in millions, except per share amounts)
2025
2024
% Change
Total Operating Revenue
$
263.6
$
254.4
3.6
Operating Income
16.3
12.4
31.5
Income Before Income Tax
8.6
3.1
177.4
Net Income
6.6
1.8
263.0
Diluted earnings per share
$
0.12
$
0.03
300.0
Three Months Ended June 30,
(unaudited) (in millions, except per share amounts)
2025
2024
% Change
Adjusted Operating Income(2)
$
17.9
$
13.9
28.2
Adjusted Income Before Income Tax(2)
10.2
4.7
118.4
Adjusted Net Income(2)
7.8
3.0
158.7
Adjusted diluted earnings per share(2)
$
0.14
$
0.06
133.3
Six Months Ended June 30,
(unaudited) (in millions, except per share amounts)
2025
2024
% Change
Total Operating Revenue
$
590.3
$
565.9
4.3
Operating Income
72.5
67.5
7.4
Income Before Income Tax
56.7
49.6
14.2
Net Income
43.1
37.1
16.1
Diluted earnings per share
$
0.78
$
0.67
16.4
Six Months Ended June 30,
(unaudited) (in millions, except per share amounts)
2025
2024
% Change
Adjusted Operating Income(2)
$
77.6
$
70.6
9.9
Adjusted Income Before Income Tax(2)
62.5
52.7
18.5
Adjusted Net Income(2)
47.6
39.5
20.4
Adjusted diluted earnings per share(2)
$
0.86
$
0.72
19.4
Amounts presented in the tables above may not recalculate due to rounding
For the quarter ended June 30, 2025, Sun Country reported net income of approximately $7 million and income before income tax of $9 million, on $264 million of revenue. Adjusted income before income tax(2) for the quarter was approximately $10 million. GAAP operating income during the quarter was $16 million, while adjusted operating income(2) was $18 million, and GAAP operating margin was 6.2% and adjusted operating margin(2) was 6.8%.
"Our second quarter shows tangible results of our diversified business model," said Bill Trousdale, Interim Chief Financial Officer. "Cargo revenue increased 36.8% while charter revenue increased 6.4%. Cargo block hours were slightly lower than expected due to the timing of cargo aircraft deliveries, but we were able to offset the decrease in cargo block hours with an increase in charter flying. CASM grew by 6.3% while adjusted CASM(4) increased 11.3% mostly due to the reduction of our scheduled service capacity to accommodate the planned growth of our cargo segment. We anticipate CASM and adjusted CASM(4) to remain elevated until we begin growing our scheduled service business again in the second half of 2026."
Notable Highlights
Took delivery of all eight cargo aircraft under the new agreement signed in June 2024. Five of those eight are currently in service, and the other three are expected to be in service by the end of the third quarter. By the end of the third quarter, we will operate 20 cargo aircraft.
Extended leases on two of the five passenger aircraft that are on lease to other operators. The current expected re-delivery schedule of the five leased aircraft includes two in the fourth quarter of 2025, one in the second quarter of 2026, one in the third quarter of 2026, and one in the fourth quarter of 2026.
In May, took re-delivery of one of the Boeing 737-900ER aircraft that was previously on lease. This aircraft is expected to enter service by the end of the third quarter.
Retired one 737-800 in the second quarter. The Company currently expects to end 2025 with 45 passenger aircraft and 20 cargo aircraft.
Extended the selling schedule through April 28, 2026.
Capacity
System block hours flown during the second quarter of 2025 declined by 0.5% year-over-year. This was mainly due to the 6.2% decrease in scheduled service ASMs to support the 9.5% increase in cargo block hours and the 7.9% increase in charter block hours. Scheduled service ASMs are expected to decline again in the third quarter 2025 by approximately 10% to allow for planned cargo segment growth.
Revenue
Scheduled service demand remained robust during the quarter, which helped to offset the decline in scheduled service capacity. The Company reported total revenue of $264 million for the second quarter, which was 3.6% greater than the second quarter of 2024. Scheduled service TRASM(3) of 10.40 cents increased 3.7% year-over-year, while scheduled service ASMs decreased 6.2%. The second quarter 2025 total fare per scheduled passenger of $151 was higher than second quarter 2024 by 6.5%, partially offset by a 1.3 percentage point decline in load factor year-over-year. The Company's second quarter charter revenue was $54 million, an increase of 6.4% year-over-year, slightly below charter block hour growth of 7.9%. This variance was mainly driven by lower fuel cost reimbursements from Sun Country charter customers, resulting from lower fuel prices in the current year.
In the second quarter of 2025, cargo revenue was $35 million, a 36.8% increase versus the second quarter of 2024, on a 9.5% increase in cargo block hours. This improvement was primarily driven by the increase in the number of cargo aircraft in service and the new Amazon contract rates which went into effect in June 2024.
Cost
Second quarter CASM increased 6.3%, while adjusted CASM(4) was up 11.3% year-over-year. Total GAAP operating expenses increased 2.2% year-over-year on a 0.5% decrease in total block hours. Costs are expected to remain elevated throughout the remainder of this year due to the reduction of scheduled service flying to allow for increased cargo flying. This will continue to put pressure on costs until the Company adds back scheduled service later in 2026. During the quarter, landing fees and airport rent increased 9.1% due to rate increases at airports, while the 14.0% increase in other operating expense was primarily the result of an increase in operations and decreased activity from our engine part sales programs.
Balance Sheet and Liquidity
Total liquidity(5) was $207 million on June 30, 2025, while the Company's net debt(6) was $431 million.
(in millions - amounts may not recalculate due to rounding)
June 30, 2025
December 31, 2024
(Unaudited)
Cash and Cash Equivalents
$
37.0
$
83.2
Available-for-Sale Securities
94.6
97.6
Amount Available Under Revolving Credit Facility
75.0
24.7
Total Liquidity
$
206.6
$
205.6
(in millions - amounts may not recalculate due to rounding)
June 30, 2025
December 31, 2024
(Unaudited)
Total Debt, net
$
282.1
$
327.1
Finance Lease Obligations
261.3
271.3
Operating Lease Obligations
19.0
20.7
Total Debt, net, and Lease Obligations
562.4
619.0
Cash and Cash Equivalents
37.0
83.2
Available-for-Sale Securities
94.6
97.6
Net Debt
$
430.8
$
438.2
Fleet
As of June 30, 2025, the Company had 45 aircraft in its passenger service fleet, 19 freighter aircraft in its cargo fleet and five aircraft on lease to unaffiliated airlines.
Guidance for Third Quarter 2025
Q3 2025
H/(L) vs Q3 2024
Total revenue - millions
$250 to $260
0 to 4%
Economic fuel cost per gallon
$2.61
(3)%
Operating income margin - percentage
3% to 6%
(2.6)pp to 0.4pp
Effective tax rate
23%
Total system block hours - thousands
38 to 39
5% to 8%
Conference Call & Webcast Details
Sun Country Airlines will host a conference call to discuss its second quarter 2025 results at 10:00 a.m. Eastern Time on Friday, August 1, 2025. A live broadcast of the conference call will be available via the investor relations section of Sun Country Airlines' website at https://ir.suncountry.com/news-events/events-and-presentations. The online replay will be available on the same website approximately one hour after the call.
About Sun Country Airlines
Sun Country Airlines is a new breed of hybrid low-cost air carrier, whose mission is to connect guests to their favorite people and places, to create lifelong memories and transformative experiences. Sun Country dynamically and synergistically deploys shared resources for our passenger service (including scheduled service and charter) and cargo service segments. Based in Minnesota, we focus on serving leisure and visiting friends and relatives ("VFR") passengers and charter customers and providing cargo service to Amazon, with flights throughout the United States and to destinations in Mexico, Central America, Canada, and the Caribbean. For photos, b-roll and additional company information, visit https://www.stories.suncountry.com/multimedia.
End Notes
1 -
Records begin in January 2017
2 -
See additional details, including reconciliations to the most comparable GAAP measures, in the section titled "Non-GAAP financial measures"
3 -
Scheduled Service TRASM includes Schedule Service revenue, Ancillary revenue, and ASM generating revenue classified within Other Revenue on the Condensed Consolidated Statement of Operations / Scheduled Service ASMs. Other Revenue includes rental revenue associated with certain assets that generate lease income of approximately $11.0 million and $9.9 million in the three months ended June 30, 2025 and 2024 and $19.6 million and $19.1 million in the six months ended June 30, 2025 and 2024, respectively, which is not included.
4 -
Adjusted CASM is a non-GAAP measure derived from CASM by excluding fuel costs, non-cash management stock compensation expense, costs arising from its cargo operations, depreciation and amortization recognized on certain assets that generate lease income, certain commissions, and other costs of selling its vacations product from this measure. See table titled "Reconciliation of CASM to Adjusted CASM"
5 -
Total liquidity = cash and cash equivalents + available-for-sale securities + amount available under revolver
6 -
Net debt = current portion of long-term debt + long-term debt + finance lease obligations + operating lease obligations, cash and cash equivalents - available-for-sale securities
Forward Looking Statements
This press release contains forward-looking statements, which involve risks and uncertainties. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "plan," "possible," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management, and expected market growth are forward-looking statements. The forward-looking statements could relate to the following, among other items:
our strategy, outlook and growth prospects;
our operational and financial targets and dividend policy;
general economic trends and trends in the industry and markets;
potential repurchases of our common stock; and
the competitive environment in which we operate.
These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.
These forward-looking statements reflect our views with respect to future events as of the date of this press release and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release and, except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release. We anticipate that subsequent events and developments will cause our views to change. You should read this press release completely and with the understanding that our actual future results may be materially different from what we expect. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may undertake. We qualify all of our forward-looking statements by these cautionary statements. Additional information concerning certain factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
Non-GAAP Financial Measures
We sometimes use information that is derived from the Condensed Consolidated Financial Statements, but that is not presented in accordance with GAAP. We believe these non-GAAP measures provide a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. We believe certain charges included in our operating expenses on a GAAP basis make it difficult to compare our current period results to prior periods as well as future periods and guidance. The tables below show a reconciliation of non-GAAP financial measures used in this document to the most directly comparable GAAP financial measures.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in thousands, except per share amounts) (Unaudited- amounts may not recalculate due to rounding)
Three Months Ended June 30,
2025
2024
% Change
Operating Revenues:
Scheduled Service
$
88,138
$
88,078
0.1
Charter
54,271
51,009
6.4
Ancillary
72,259
77,308
(6.5
)
Passenger
214,668
216,395
(0.8
)
Cargo
34,803
25,447
36.8
Other
14,150
12,539
12.8
Total Operating Revenue
263,621
254,381
3.6
Operating Expenses:
Aircraft Fuel
50,536
62,188
(18.7
)
Salaries, Wages, and Benefits
89,557
79,359
12.9
Maintenance
18,250
17,339
5.3
Sales and Marketing
8,001
8,392
(4.7
)
Depreciation and Amortization
24,972
23,631
5.7
Ground Handling
11,353
11,368
(0.1
)
Landing Fees and Airport Rent
14,971
13,723
9.1
Special Items, net(1)
49
—
NM
Other Operating, net
29,670
26,016
14.0
Total Operating Expenses
247,359
242,016
2.2
Operating Income
16,262
12,365
31.5
Non-operating Income (Expense):
Interest Income
1,513
1,800
(15.9
)
Interest Expense
(9,212
)
(11,077
)
(16.8
)
Other, net
(7
)
(4
)
75.0
Total Non-operating Expense, net
(7,706
)
(9,281
)
(17.0
)
Income before Income Tax
8,556
3,084
177.4
Income Tax Expense
1,979
1,272
55.6
Net Income
$
6,577
$
1,812
263.0
Net Income per share to common stockholders:
Basic
$
0.12
$
0.03
300.0
Diluted
$
0.12
$
0.03
300.0
Shares used for computation:
Basic
53,222,461
52,689,408
1.0
Diluted
54,777,448
54,792,848
—
NM - not meaningful1, In March 2025, the Company's flight attendants, represented by the International Brotherhood of Teamsters, ratified a new five-year collective bargaining agreement. Upon ratification of the new agreement, eligible flights attendants became entitled to a one-time ratification bonus. Eligibility requirements stipulate that flight attendants must be on the seniority list as of the ratification date, have completed probation, and hold an active status in order to receive the bonus payment. Ratification bonuses were paid to all eligible flight attendants during the six months ended June 30, 2025, per the collective bargaining agreement. Certain portions of the ratification bonus are paid in future periods as flight attendants on the seniority list as of the ratification date complete their probationary period or change their status from inactive to active. The ratification bonus and payroll related tax expense were included within Special Items, net.
Six Months Ended June 30,
2025
2024
% Change
Operating Revenues:
Scheduled Service
$
231,660
$
229,272
1.0
Charter
108,963
98,321
10.8
Ancillary
159,933
163,466
(2.2
)
Passenger
500,556
491,059
1.9
Cargo
62,960
49,395
27.5
Other
26,754
25,410
5.3
Total Operating Revenue
590,270
565,864
4.3
Operating Expenses:
Aircraft Fuel
115,155
132,492
(13.1
)
Salaries, Wages, and Benefits
182,402
161,597
12.9
Maintenance
37,112
34,156
8.7
Sales and Marketing
18,396
19,071
(3.5
)
Depreciation and Amortization
49,776
47,440
4.9
Ground Handling
22,760
20,522
