Financial Results Sun Country Airlines Announces Q4 and Full-Year 2024 Performance
Sun Country Airlines Holdings, Inc. (“Sun Country Airlines,” “Sun Country,” the “Company”) (NASDAQ: SNCY) has reported its financial results for the fourth quarter and full year ended December 31, 2024. The company demonstrated strong performance, achieving record fourth-quarter revenue and pretax earnings, attributed to its diversified business model and the dedication of its employees.
Financial Performance and Highlights
Chief Executive Officer Jude Bricker stated that the company maintained a leading position in adjusting capacity in response to industry oversupply, particularly during off-peak periods. This approach contributed to a more balanced capacity environment in the fourth quarter, a trend expected to persist into the first quarter of 2025. Sun Country’s cargo business also showed improved economics, further strengthening results in the latter half of the year. The company anticipates a favorable environment in 2025, with robust unit revenue trends in the passenger business and an expansion of its Amazon freighter fleet with eight additional aircraft.
Sun Country’s revenue streams are becoming more diversified, particularly with the increase in cargo operations. Earnings are also stabilizing as more flights operate under contractual agreements. The company’s continued expansion into cargo flying will provide a more predictable revenue base, ensuring sustained financial stability.
Fourth Quarter and Full-Year Results
Fourth Quarter 2024 Financial Results (Compared to Q4 2023):
- Total Operating Revenue: $260.4 million (up 6.1%)
- Operating Income: $26.1 million (up 52.2%)
- Income Before Income Tax: $16.9 million (up 121.0%)
- Net Income: $13.4 million (up 138.0%)
- Diluted Earnings per Share: $0.24 (up 140.0%)
Adjusted Financial Results:
- Adjusted Operating Income: $27.5 million (up 50.6%)
- Adjusted Income Before Income Tax: $18.9 million (up 103.7%)
- Adjusted Net Income: $15.0 million (up 117.1%)
- Adjusted Diluted Earnings per Share: $0.27 (up 125.0%)
Full Year 2024 Financial Results (Compared to FY 2023):
- Total Operating Revenue: $1,075.7 million (up 2.5%)
- Operating Income: $106.0 million (down 16.9%)
- Income Before Income Tax: $69.6 million (down 26.1%)
- Net Income: $52.9 million (down 26.7%)
- Diluted Earnings per Share: $0.96 (down 22.0%)
Adjusted Financial Results:
- Adjusted Operating Income: $112.0 million (down 18.1%)
- Adjusted Income Before Income Tax: $76.1 million (down 26.9%)
- Adjusted Net Income: $58.0 million (down 27.4%)
- Adjusted Diluted Earnings per Share: $1.05 (down 23.4%)
Despite year-over-year declines in full-year profitability metrics, the company achieved significant growth in the fourth quarter. Sun Country exceeded expectations for total revenue and operating margin, with December scheduled service TRASM increasing over 5% year-over-year on nearly 8% ASM growth. The company also saw a 2.2% increase in total fares and expects this positive trend to continue.
President and CFO Dave Davis noted that the company successfully managed costs, with full-year 2024 adjusted CASM rising only 1.3% over 2023. First-quarter 2025 bookings remain strong, with scheduled service ASMs expected to grow mid-single digits. The company anticipates rapid expansion in the cargo segment, with new freighter deliveries timed to maximize scheduled service flying during the first quarter.
Key Business Developments
- Labor Agreements: Sun Country reached an agreement in principle on a collective bargaining agreement with flight attendants, represented by the International Brotherhood of Teamsters, and a tentative agreement with dispatchers, represented by the Transport Workers Union. Both agreements are expected to be ratified by the end of the first quarter of 2025.
- Fleet Expansion and Lease Adjustments: The company extended lease return dates on three Boeing 737-900ER aircraft, with return dates for four leased aircraft scheduled between May 2025 and November 2026. Additionally, Sun Country took delivery of a 737-900ER off lease in November 2024, expected to enter service in July 2025.
- Financial Strategy: The company raised $60 million through a new C-tranche in its 2019-1 EETC, which was used to pay down a substantial portion of a term loan financing five 737-900ER aircraft. This move is expected to save approximately $0.8 million in interest expenses in 2025.
- Awards and Recognition: Sun Country was awarded the 2024 Low-Cost Carrier of the Year by CAPA-Centre for Aviation, a testament to its operational efficiency and business strategy.
- Branding Initiatives: The airline introduced its first custom-designed aircraft livery, celebrating its partnership with Minnesota Gopher Athletics.
Sun Country anticipates a favorable environment moving into 2025. Passenger unit revenue trends remain strong, and Financial Results the airline is expanding its Financial Results cargo fleet with eight additional Amazon freighters. The diversification of revenue streams through increased cargo operations and contractual flying agreements is expected to contribute to greater financial stability.
With its disciplined approach to capacity management and cost control, Sun Country is well-positioned for continued profitability Financial Results and growth in 2025. The airline’s strategic initiatives, including labor agreements, fleet management, and financial optimization, are set to strengthen its market position.
Sun Country Airlines demonstrated resilience and adaptability in 2024, leveraging its diversified business model to achieve record revenue and strong financial performance in the fourth quarter. Despite some full-year declines, the company is entering 2025 with momentum, expecting continued growth in passenger and cargo operations. The company’s proactive strategies, cost management, and fleet expansion will play a pivotal role in driving long-term success.