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%

Sun Country Airlines Holdings, Inc. (“Sun Country Airlines,” “Sun Country,” the “Company”) 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

 

 

 

^{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.

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