Source: Sun Country Airlines
- Fourteenth consecutive quarter and fifth consecutive year of profitability
- Q4 2025 total revenue of $281.0 million, highest fourth quarter on record(1)
- Q4 2025 GAAP diluted EPS of $0.15 and adjusted diluted EPS of $0.17(2)
- FY 2025 total revenue of $1.13 billion, highest full year on record(1)
- FY 2025 GAAP diluted EPS of $0.96 and adjusted diluted EPS of $1.10(2)
Sun Country Airlines Holdings, Inc. (“Sun Country Airlines,” “Sun Country,” the “Company”) has reported financial results for its fourth quarter and full year ended December 31, 2025.
“I’m proud to report our 14th consecutive profitable quarter and fifth consecutive year of profitability,” said Jude Bricker, President and Chief Executive Officer of Sun Country. “2025 was a transformative and successful year for Sun Country. We expanded our cargo fleet by eight aircraft to strengthen our cargo business. This strategic growth required deliberate capacity adjustments in our scheduled service network, and despite this complexity, we delivered margins that are among the highest in the industry. This achievement reflects the exceptional dedication and effort of our team. Recently, we announced our transformative merger with Allegiant, and we are looking forward to capitalizing on our promise of our combined airline for our customers, employees, and shareholders alike. We continue to focus on executing a safe, reliable profitable airline.”
Overview of Fourth Quarter and Full Year
| Three Months Ended December 31, | ||||||
| (unaudited) (in millions, except per share amounts) | 2025 | 2024 | % Change | |||
| Total Operating Revenue | $ | 281.0 | $ | 260.4 | 7.9 | |
| Operating Income | 18.2 | 26.1 | (30.3 | ) | ||
| Income Before Income Tax | 11.4 | 16.9 | (32.9 | ) | ||
| Net Income | 8.1 | 13.4 | (39.4 | ) | ||
| Diluted earnings per share | $ | 0.15 | $ | 0.24 | (37.5 | ) |
| Three Months Ended December 31, | ||||||
| (unaudited) (in millions, except per share amounts) | 2025 | 2024 | % Change | |||
| Adjusted Operating Income (2) | $ | 19.5 | $ | 27.5 | (29.0 | ) |
| Adjusted Income Before Income Tax (2) | 12.7 | 18.9 | (32.8 | ) | ||
| Adjusted Net Income (2) | 9.2 | 15.0 | (38.6 | ) | ||
| Adjusted diluted earnings per share (2) | $ | 0.17 | $ | 0.27 | (37.0 | ) |
| Year Ended December 31, | ||||||
| (unaudited) (in millions, except per share amounts) | 2025 | 2024 | % Change | |||
| Total Operating Revenue | $ | 1,126.8 | $ | 1,075.7 | 4.7 | |
| Operating Income | 100.6 | 106.0 | (5.1 | ) | ||
| Income Before Income Tax | 70.2 | 69.6 | 0.9 | |||
| Net Income | 52.8 | 52.9 | (0.2 | ) | ||
| Diluted earnings per share | $ | 0.96 | $ | 0.96 | — | |
| Year Ended December 31, | ||||||
| (unaudited) (in millions, except per share amounts) | 2025 | 2024 | % Change | |||
| Adjusted Operating Income (2) | $ | 109.5 | $ | 112.0 | (2.2 | ) |
| Adjusted Income Before Income Tax (2) | 80.2 | 76.1 | 5.3 | |||
| Adjusted Net Income (2) | 60.5 | 58.0 | 4.4 | |||
| Adjusted diluted earnings per share (2) | $ | 1.10 | $ | 1.05 | 4.8 | |
Amounts presented in the tables above may not recalculate due to rounding
For the quarter ended December 31, 2025, Sun Country reported Income Before Income Tax of $11.4 million and Net Income of $8.1 million, on $281.0 million of revenue. Adjusted Income Before Income Tax for the quarter was $12.7 million(2). GAAP Operating Income during the quarter was $18.2 million, producing an Operating Income Margin of 6.5%, while Adjusted Operating Income was $19.5 million(2), resulting in an Adjusted Operating Income Margin of 7.0%(2).
“Our diversified business model delivered exceptional results in the fourth quarter, with record cargo revenue(1) and the highest fourth quarter charter revenue in company history(1),” said Torque Zubeck, Chief Financial Officer. “Our strong charter performance demonstrates the flexibility of our business model and our ability to quickly respond to opportunities in the market. In scheduled service, capacity decreased 9.8% as resources were redeployed to accommodate our cargo fleet expansion. The reduction in scheduled service capacity combined with a strong demand environment drove scheduled service TRASM(3) growth of 8.9%. We are well positioned for continued growth in 2026 as first quarter demand trends remain strong and we will be growing back our scheduled service business later in the year.”
Notable Operational Highlights
- Announced plans to open a new operational base at Cincinnati/Northern Kentucky International Airport (CVG) in early 2026 which we believe will bolster operational efficiencies in our cargo business
- Plans to add two new cargo aircraft to the fleet, with both aircraft expected to be operational in early third quarter 2026. One of these aircraft will be utilized as a spare to support the cargo operation.
- Received one 737-900ER and one 737-800 during the quarter. Both of these aircraft were previously on lease with other operators and are being transitioned into Sun Country configurations and are expected to enter into service by the end of first quarter 2026.
- Currently has three aircraft on lease that are expected to be returned to the Company through 2026
Capacity
System block hours flown during the fourth quarter of 2025 grew by 9.2% year-over-year, driven by the segments under contract. Cargo block hours increased in the fourth quarter by 50.6% year-over-year while charter block hours increased 12.4%. Scheduled service block hours declined 8.5% in the quarter as pilot resources were shifted to support cargo growth.
Revenue
The Company experienced strong scheduled service demand during the fourth quarter. Scheduled service TRASM(3) increased 8.9% year-over-year on a 9.8% decrease in scheduled service ASMs. Average base fare, ancillary revenue per passenger, and scheduled service load factor all increased versus the fourth quarter of 2024.
Charter revenue increased 18.0% on a 12.4% increase in charter block hours. Charter flying under long-term contracts accounted for 64% of charter block hours versus 61% in the fourth quarter of 2024.
Fourth quarter cargo revenue increased 67.9% on block hour growth of 50.6%, primarily driven by the eight additional cargo aircraft deployed earlier in the year.
Cost
Fourth quarter GAAP operating expense increased 12.1%, compared to total block hour growth of 9.2%. Fuel cost per gallon increased 3.6%.
CASM increased 19.1% on a 5.8% decrease in system ASMs. Adjusted CASM(4) increased 12.1%, primarily driven by headcount growth of 4.5% to support the expanded aircraft fleet and a significant increase in scheduled heavy maintenance versus the fourth quarter of 2024 as the Company was able to pull forward some events from 2026.
Balance Sheet and Liquidity
Total liquidity(5) was $302.8 million on December 31, 2025, while the Company’s net debt(6) was $364.0 million.
| (in millions – amounts may not recalculate due to rounding) | December 31, 2025 | December 31, 2024 | |||
| (Unaudited) | |||||
| Cash and Cash Equivalents | $ | 144.7 | $ | 83.2 | |
| Available-for-Sale Securities | 83.1 | 97.6 | |||
| Amount Available Under Revolving Credit Facility | 75.0 | 24.7 | |||
| Total Liquidity | $ | 302.8 | $ | 205.6 | |
| (in millions – amounts may not recalculate due to rounding) | December 31, 2025 | December 31, 2024 | |||
| (Unaudited) | |||||
| Total Debt, net | $ | 323.3 | $ | 327.1 | |
| Finance Lease Obligations | 251.1 | 271.3 | |||
| Operating Lease Obligations | 17.4 | 20.7 | |||
| Total Debt and Lease Obligations | 591.8 | 619.0 | |||
| Cash and Cash Equivalents | 144.7 | 83.2 | |||
| Available-for-Sale Securities | 83.1 | 97.6 | |||
| Net Debt | $ | 364.0 | $ | 438.2 | |
Fleet
As of December 31, 2025, the Company had 47 aircraft in its passenger service fleet, operated 20 freighter aircraft in its cargo operation and had three aircraft that are currently on lease to unaffiliated airlines.
Pending Transaction with Allegiant
On January 11, 2026, Sun Country and Allegiant entered into a definitive agreement under which Allegiant will acquire all of the outstanding shares of Sun Country in a cash and stock transaction (the “Merger”).
In light of the pending transaction, Sun Country will not host a live conference call to discuss its financial results, and Sun Country will no longer provide quarterly guidance.
The transaction is expected to close in the second half of 2026, subject to receipt of U.S. federal antitrust clearance and other required regulatory approvals, the approval of both companies’ shareholders and other customary closing conditions.
End Notes
| 1 – | Records began 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 Consolidated Statement of Operations / Scheduled Service ASMs. Other Revenue includes rental revenue of approximately $8.4 million and $13.1 million associated with certain assets that generate lease income in the three months ended December 31, 2025 and 2024, respectively and $35.2 million and $42.3 million associated with certain assets that generate lease income in the year ended December 31, 2025 and 2024, respectively, which is not included. |
| 4 – | Adjusted CASM is a metric that uses 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 unplanned engine events, 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 |