Sun Country Airlines has reported a second quarter 2024 net profit pf $1.8 million or $0.03 per diluted share on a year-over-year decline in revenue of 2.6 percent to $254.4 million. At June 30, 2024, the airline had liquidity totaling $153 million.
On Thursday (August 1st, 2024), Sun Country Airlines reported their second quarter 2024 financial results for the period ending June 30, 2024. The carrier reported a second quarter net profit of $1.8 million or $0.03 per diluted share on a year-over-year decline in revenue of 2.6 percent to $254.4 million. Sun Country’s second quarter total revenue per available seat mile (TRASM) declined versus Q2 2023 by 15.8 percent to 10.89 cents, while cost per available seat mile (CASM) declined 5.1 percent to 12.03 cents. At June 30, 2024, the airline had liquidity totaling $153 million, and total net debt of $552 million.
In Thursday’s announcement, Sun Country Airlines’ Chief Executive Officer, Jude Bricker, said,
“Sun Country is pleased to report our eighth consecutive profitable quarter with GAAP EPS of $0.03 and adjusted EPS of $0.06. Despite a soft domestic revenue environment and some late-June operational challenges, we delivered a GAAP operating margin of 4.9% and an adjusted operating margin of 5.5%. Sun County’s financial results continue to be among the industry leaders at a particularly challenging time for low-cost airlines. This is the direct result of the unique, diversified model that we have built over the last 6 years. The revised agreement with Amazon that we announced in June will further strengthen the diversification of our revenue base and should significantly add to our earnings. We want to thank our employees for their hard work and dedication during a challenging operating period.”
Also commenting on the carrier’s second quarter results, Sun Country Airlines’ President and CFO, Dave Davis, said,
“Despite the challenging domestic revenue environment, and the fact that second quarter is a seasonally weaker quarter for Sun Country, we continued our two-year run of profitable quarters. Our results were driven by continued cost control, as total operating expense grew less than total block hours and adjusted CASM decreased by 4.9% year over year. This is the third consecutive quarter where Sun Country’s unit costs declined on a year-over-year basis. The strength of the Sun Country model is driven by our diversified revenue streams, which other carriers cannot readily duplicate. We move capacity to the lines of business that will maximize profitability. Our revised agreement with Amazon is a great example of the power of this diversification. As new Amazon aircraft come into service starting in late-first quarter 2025, we intend to moderately shrink our scheduled service business to accommodate the Amazon growth. Our intent is to begin growing the scheduled service business again in 2026.”
During the quarter, Sun Country Airlines entered into a revised Air Transport Services Agreement with Amazon, which includes an extension of the agreement through 2030, with options for a further extension through 2037. The revised agreement also includes the addition of eight new freighters to Sun Country’s fleet and revised economics reflecting the post-pandemic cost environment.
Sun Country also extended leases on two Boeing 737-800s, which the company currently has on lease to another airline, which will now be re-delivered to Sun Country in May and November 2025, respectively. Additionally, Sun Country extended their schedule through April 29, 2025, which includes over 55 destinations from Minneapolis-St Paul for the winter 2024/25 season. During Q2 2024, the carrier further announced the launch of new international service from Milwaukee to the Dominican Republic and Jamaica. At June 30, 2024, Sun Country had 44 aircraft in their passenger service fleet, and was operating 12 freighter aircraft in cargo operations, as well as seven aircraft currently on leas to unaffiliated airlines.
Founded in 1983, Sun Country Airlines (NASDAQ: SNCY) has evolved into a new breed of hybrid low-cost carrier. The award-winning Minneapolis-St. Paul based airline has distinguished itself as a leader in leisure travel over their 40-plus years of service. Sun Country offers low fares and safe, reliable, nonstop service on 120 routes to 104 airports across the U.S., Mexico, Central America, Canada and the Caribbean. Additionally, the carrier offers services through their Sun Country Charters and Sun Country Vacations divisions and operates cargo CMI services for Amazon.
Source: Sun Country Airlines/Globe Newswire
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