If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.Sun Country Airlines (NASDAQ: SNCY ) has been one of my favorite airline stocks due to their unique business set up. However, coming out of the pandemic the company made the decision to go big on scheduledDhierin runs the investing group The Aerosp ...

New "Plus Status" Offering Allows Travelers to Earn Additional Benefits for Flights and Everyday Purchases STAMFORD, Conn. and MINNEAPOLIS , Sept. ...

MINNEAPOLIS, Sept. 22, 2025 (GLOBE NEWSWIRE) -- Sun Country Airlines (NASDAQ: SNCY) announced today the appointment of Twin Cities businessperson Wendy Schoppert to its Board of Directors, effective October 1, 2025. Schoppert brings a wealth of experience as a corporate board director for public and private companies across the retail, consumer products, financial services, and health care industries. She currently serves as Chair of the Board of The ODP Corporation/Office Depot as well as a member of the D ...

Core Insights - The Vanguard S&P Small-Cap 600 Value ETF (VIOV) has an implied analyst target price of $105.50 per unit, indicating a potential upside of 11.80% from its recent trading price of $94.37 [1][2][3] Summary by Category ETF Overview - VIOV is currently trading at $94.37, with analysts projecting a target price of $105.50, reflecting an 11.80% upside [2][3] Underlying Holdings - Notable underlying holdings with significant upside potential include: - Minerals Technologies, Inc. (MTX): Recent price of $63.03, target price of $82.00, representing a 30.10% upside [2][3] - Sun Country Airlines Holdings Inc (SNCY): Recent price of $13.11, target price of $16.55, indicating a 26.28% upside [2][3] - Edgewell Personal Care Co (EPC): Recent price of $21.67, target price of $26.00, showing a 19.98% upside [2][3] Analyst Target Price Analysis - The analysis raises questions about whether analysts' targets are justified or overly optimistic, suggesting the need for further investor research into recent company and industry developments [3]

Torque Zubeck Torque Zubeck Stephen Coley Stephen Coley MINNEAPOLIS, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Sun Country Airlines (NASDAQ: SNCY) announced today that D. Torque Zubeck, formerly a managing director with Alaska Airlines, will join Sun Country as Senior Vice President and Chief Financial Officer on Tuesday, September 2. Zubeck brings more than 30 years of finance experience to Sun Country, including more than 22 years of airline leadership roles. He served as Chief Financial Officer of Mesa A ...

Sun Country Airlines (SNCY -11.04%), a hybrid airline combining scheduled flights, charter services, and dedicated cargo operations, announced its second quarter 2025 financial results on July 31, 2025. The airline posted record GAAP revenue of $263.6 million and adjusted earnings per share of $0.14, both exceeding Wall Street expectations, with non-GAAP EPS of $0.14 (versus estimate of $0.11) and GAAP revenue of $263.6 million (versus estimate of $255.98 million). Analysts had projected GAAP revenue of $25 ...

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's assets and liabilities decreased, while net income grew year-over-year for the six months ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $1.55 billion while stockholders' equity increased to $613.0 million by June 30, 2025 Condensed Consolidated Balance Sheets | Balance Sheet Item | June 30, 2025 (Unaudited, in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $222,293 | $266,584 | | **Total Assets** | **$1,552,109** | **$1,630,177** | | **Total Current Liabilities** | $354,702 | $422,290 | | **Total Liabilities** | **$939,064** | **$1,059,804** | | **Total Stockholders' Equity** | **$613,045** | **$570,373** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Operating revenues and net income grew for both the three and six-month periods ending June 30, 2025 Key Operating Metrics | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Six Months 2025 (in thousands) | Six Months 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $263,621 | $254,381 | $590,270 | $565,864 | | **Operating Income** | $16,262 | $12,365 | $72,508 | $67,541 | | **Net Income** | $6,577 | $1,812 | $43,112 | $37,125 | | **Diluted EPS** | $0.12 | $0.03 | $0.78 | $0.67 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations slightly decreased while cash used in financing and investing activities increased Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $36,252 | $38,872 | | **Net Cash (Used in) Provided by Investing Activities** | $(8,011) | $3,522 | | **Net Cash Used in Financing Activities** | $(75,402) | $(72,037) | | **Net Decrease in Cash, Cash Equivalents and Restricted Cash** | $(47,161) | $(29,643) | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail significant cargo service expansion with Amazon, fleet growth, and a new credit facility - The company expanded its cargo operations with Amazon by entering into the Amended and Restated Air Transportation Services Agreement (A&R ATSA), which will increase the number of cargo aircraft operated from 12 to 20; **seven of the eight additional aircraft were received by June 30, 2025**[23](index=23&type=chunk) Revenue by Category (Six Months Ended June 30) | Revenue Category | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Passenger** | $500,556 | $491,059 | | **Cargo** | $62,960 | $49,395 | | **Other** | $26,754 | $25,410 | | **Total Operating Revenues** | **$590,270** | **$565,864** | - As of June 30, 2025, the company's fleet consisted of **69 Boeing 737-NG aircraft**, an increase from 63 aircraft at the same time in 2024, primarily due to additions for cargo operations[35](index=35&type=chunk)[37](index=37&type=chunk) - In March 2025, the company executed a **new $75 million Revolving Credit Facility**, replacing its previous $25 million facility; the company was in compliance with all financial covenants as of June 30, 2025[44](index=44&type=chunk) Segment Performance (Six Months Ended June 30, 2025) | Segment Performance | Passenger (in thousands) | Cargo (in thousands) | | :--- | :--- | :--- | | **Operating Revenues** | $527,310 | $62,960 | | **Operating Income (Loss)** | $68,731 | $3,777 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue growth was driven by expanded cargo services, offsetting higher labor costs with lower fuel expenses [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Revenue increased 4% in the first half of 2025, driven by strong cargo and charter performance - For Q2 2025, Total Operating Revenues **increased 4% YoY**, driven by a **37% increase in Cargo revenue** from the expanded Amazon agreement; this was partially offset by a 1% decrease in Passenger revenue as capacity was shifted to support cargo growth[97](index=97&type=chunk)[100](index=100&type=chunk) - Q2 2025 Aircraft Fuel expense **decreased 19% YoY** due to a 15% decrease in fuel cost per gallon and a 4% decrease in consumption; conversely, Salaries, Wages, and Benefits **increased 13%** due to a 7% increase in headcount and contractual rate increases[104](index=104&type=chunk)[105](index=105&type=chunk) - For the six months ended June 30, 2025, Total Operating Revenues **increased 4% YoY**; the growth was primarily from a **27% increase in Cargo revenue** and an **11% increase in Charter revenue**[118](index=118&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) [Segments Analysis](index=34&type=section&id=Segments) The Cargo segment's operating income improved significantly, while the Passenger segment's income remained stable Segment Performance (Six Months Ended June 30) | Segment Performance | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Passenger Operating Income** | $68,731 | $69,072 | | **Passenger Operating Margin %** | 13.0% | 13.4% | | **Cargo Operating Income (Loss)** | $3,777 | $(1,531) | | **Cargo Operating Margin %** | 6.0% | (3.1)% | - The Cargo segment's operating income **improved by $5.3 million** for the first six months of 2025 compared to 2024, driven by contractual rate increases and the addition of new aircraft under the A&R ATSA with Amazon[140](index=140&type=chunk) [Non-GAAP Financial Measures](index=37&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted Net Income and Adjusted Operating Income showed year-over-year growth Adjusted Net Income Reconciliation (Six Months Ended June 30) | Reconciliation | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Net Income (GAAP)** | $43,112 | $37,125 | | Special Items, net | 1,848 | — | | Stock Compensation Expense | 3,254 | 3,084 | | Other Adjustments | 667 | — | | Income Tax Effect of Adjustments | (1,327) | (709) | | **Adjusted Net Income (Non-GAAP)** | **$47,554** | **$39,500** | CASM Reconciliation (Six Months Ended June 30) | CASM Reconciliation | 2025 (cents) | 2024 (cents) | | :--- | :--- | :--- | | **CASM (GAAP)** | 12.03 | 11.80 | | Less: Aircraft Fuel | 2.68 | 3.14 | | Less: Cargo Expenses & Other Adjustments | 1.56 | 1.38 | | **Adjusted CASM (Non-GAAP)** | **7.79** | **7.28** | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity remained stable at $206.6 million, sufficient to fund operations for the next 12 months Liquidity Position | Liquidity Position | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and Cash Equivalents | $36,964 | $83,219 | | Available-for-Sale Securities | $94,644 | $97,636 | | Amount Available Under Revolving Credit Facility | $75,000 | $24,743 | | **Total Liquidity** | **$206,608** | **$205,598** | - Key uses of cash in the first six months of 2025 included **$21.2 million for capital expenditures**, **$10.0 million for common stock repurchases**, and **$10.5 million for a Tax Receivable Agreement payment**[175](index=175&type=chunk)[179](index=179&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risks related to fuel prices and interest rates remain materially unchanged from the 2024 annual report - There have been **no material changes in market risk** from those disclosed in the company's 2024 10-K, with primary risks remaining aircraft fuel commodity prices and interest rates[190](index=190&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures with no material changes to internal controls - The CEO and Interim CFO concluded that the company's **disclosure controls and procedures were effective** as of June 30, 2025[193](index=193&type=chunk) - **No changes occurred** during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[194](index=194&type=chunk) [Part II. Other Information](index=46&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) Current legal proceedings are not expected to have a material adverse effect on the company's financials - The company does not expect current legal proceedings to have a **material adverse effect** on its financial condition or results[195](index=195&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have been identified since the 2024 annual report - **No material changes** have been identified from the risk factors disclosed in the 2024 10-K[196](index=196&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - The company reported **no unregistered sales of equity securities** during the period[197](index=197&type=chunk) [Defaults Upon Senior Securities](index=47&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities - The company reported **no defaults upon senior securities**[198](index=198&type=chunk) [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No directors or executive officers made changes to Rule 10b5-1 trading plans during the quarter - **No directors or executive officers** adopted, terminated, or modified any Rule 10b5-1 trading plans during the second quarter of 2025[200](index=200&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) The report includes required exhibits such as officer certifications and XBRL data files - Exhibits filed with the report include **officer certifications (31.1, 31.2, 32)** and **Inline XBRL documents (101 series)**[204](index=204&type=chunk)

Financial Data and Key Metrics Changes - The company reported its twelfth consecutive quarter of profitability, achieving a total revenue of $263.6 million, which is 3.6% higher than 2024 despite a 0.5% decrease in total block hours [14][15] - The GAAP pretax margin was 3.2%, and the adjusted pretax margin was 3.9%, marking the third consecutive quarter of total revenue growth year-over-year and improvement in pretax margin [14] - Total operating expenses grew by 2.2% with adjusted CASM increasing by 11.3%, heavily impacted by a 6.2% decline in scheduled service ASMs [18][19] Business Line Data and Key Metrics Changes - Revenue from the passenger segment, including scheduled and charter services, decreased by 0.8% year-over-year, primarily due to reduced scheduled service operations [15] - Scheduled service TRASM increased by 3.7%, with total fare rising by 6.5%, offsetting a 1.3 percentage point decline in load factor [16] - Charter revenue grew by 6.4% to $54.3 million, supported by a 7.9% increase in charter block hours [16][17] - Cargo revenue surged by 36.8% to $34.8 million, marking the highest quarterly cargo revenue in the company's history [17] Market Data and Key Metrics Changes - The company expects third quarter total revenue to be between $250 million and $260 million, with block hours projected to increase by 5% to 8% [21] - The anticipated Q3 fuel cost per gallon is $2.61, with an expected operating margin of 36% [21] Company Strategy and Development Direction - The company aims to grow its cargo business significantly, expecting to double cargo revenue once additional aircraft reach mature utilization [7][11] - The strategy includes maintaining a flexible capacity allocation between segments to maximize profitability and minimize earnings volatility [21] - The company is focused on organic growth opportunities and maintaining a strong balance sheet to capitalize on potential disruptions in the industry [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving approximately $1.5 billion in revenue, $300 million in EBITDA, and $2.5 in EPS by 2027, contingent on fleet utilization and demand [11][12] - The management noted that the current operating environment remains strong, with bookings showing year-over-year improvements in unit revenue [51][56] - There are expectations of a potential shakeup in the low-cost carrier space, with the company prepared to act on asset acquisitions or organic growth opportunities [66][68] Other Important Information - The company has a total liquidity of $206.6 million and plans to pay down an additional $44 million in debt by the end of the year [19][21] - The company does not anticipate purchasing additional aircraft until 2027 and beyond, focusing instead on optimizing current resources [19][20] Q&A Session Summary Question: Can you discuss the path to $2.50 EPS and its dependence on industry conditions? - Management indicated that long-term revenue forecasts include a general inflation tailwind of about 3% and are based on stable utilization and growth assumptions [23][24] Question: How is the peak season shaping up for Amazon revenues? - Management noted delays in asset utilization and entry into service dates, affecting the fleet's commitment [26] Question: What is the strategy regarding industry capacity and potential opportunities? - The company plans to execute well and remain nimble, focusing on organic growth opportunities as they arise [33][34] Question: Can you provide insights on margin improvement and cargo ramp-up? - Management expects the fourth quarter to be a good measurement point for cargo ramp-up, with pilot availability being a key factor [39][42] Question: How do you view the competitive landscape and capacity trends? - Management observed that many airlines are not extending schedules past January, leading to a favorable capacity environment for the company [82]

Financial Data and Key Metrics Changes - The company reported its twelfth consecutive quarter of profitability, achieving a total revenue of $263.6 million, which is 3.6% higher than the previous year despite a 0.5% decrease in total block hours [13][14] - The GAAP pretax margin was 3.2%, and the adjusted pretax margin was 3.9%, marking the third consecutive quarter of total revenue growth year-over-year and improvement in pretax margin [13] - The company expects to generate approximately $1.5 billion in revenue, $300 million in EBITDA, and $2.5 in EPS by 2027 [10][11] Business Line Data and Key Metrics Changes - Revenue from the cargo segment grew 36.8% year-over-year to $34.8 million, marking the highest quarterly cargo revenue in the company's history [16] - Scheduled service revenue, which includes both scheduled and charter businesses, decreased by 0.8% year-over-year due to a significant reduction in scheduled service operations, with scheduled service ASMs declining by 6.2% [14][15] - Charter revenue increased by 6.4% to $54.3 million, supported by a 7.9% increase in charter block hours [15][16] Market Data and Key Metrics Changes - The company anticipates third-quarter total revenue to be between $250 million and $260 million, with block hours expected to increase by 5% to 8% [21] - The company noted that fuel prices decreased by 15% compared to the same period in 2024, impacting fuel reconciliation proceeds [16] Company Strategy and Development Direction - The company is focusing on growth in its cargo business, expecting to have all eight cargo additions in service by the end of the third quarter, which will double cargo revenue once fully utilized [6][14] - The strategy includes maintaining a diversified revenue stream and being nimble in capacity allocation to maximize profitability [34][36] - The company plans to continue building its balance sheet and is open to organic growth opportunities arising from industry disruptions [34][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver industry-leading profitability throughout all cycles, despite current challenges in scheduled service due to rapid cargo growth [5][6] - The management highlighted that the peak summer months could absorb more capacity than was delivered, with expectations of margin expansion as scheduled service is rebuilt [9][10] - Management noted that the current demand for their product remains strong, with bookings for the winter peak period looking promising [55][101] Other Important Information - The company expects to pay down an additional $44 million in debt by the end of the year, with total debt and lease obligations at $562 million at the end of Q2 [20][21] - The company has a share repurchase authorization of $25 million from its Board of Directors [21] Q&A Session Summary Question: Can you discuss the path to $2.50 EPS and industry conditions? - Management indicated that long-term revenue forecasts include a general inflation tailwind of about 3% and are based on stable unit revenue performance and predictable costs [24][25] Question: How is the peak season shaping up with Amazon? - Management noted delays in asset utilization due to aircraft preparation, but they expect to reach operational capacity soon [26][27] Question: What is the strategy regarding industry capacity and competition? - The company aims to execute well and look for organic growth opportunities while maintaining a strong balance sheet [34][36] Question: Can you provide insights on charter business modeling? - Management explained that charter business consists of long-term commitments and ad hoc opportunities, with expectations for stable margins [88][89] Question: How does the company view capital allocation? - The company plans to balance between shareholder returns and growth opportunities, focusing on free cash flow generation [66][68] Question: What are the expectations for the upcoming quarters? - Management expects Q4 to be strong due to peak holiday travel, with a gradual recovery in margins anticipated [74][75]

Financial Performance - Sun Country Airlines reported revenue of $263.62 million for the quarter ended June 2025, marking a year-over-year increase of 3.6% [1] - The earnings per share (EPS) for the same period was $0.14, compared to $0.06 a year ago, indicating significant growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $254.49 million, resulting in a surprise of +3.59% [1] - The company also delivered an EPS surprise of +16.67%, with the consensus EPS estimate being $0.12 [1] Key Metrics - Fuel cost per gallon was reported at $2.43, matching the two-analyst average estimate [4] - Total revenue per available seat mile (TRASM) was 11.26 cents, below the average estimate of 11.79 cents [4] - Available seat miles (ASMs) were reported at 1.57 million, slightly above the average estimate of 1.56 million [4] - Revenue passenger miles were 1.29 billion, aligning with the average estimate [4] - Adjusted cost per available seat mile (CASM) was 8.34 cents, compared to the estimated 8.5 cents [4] - Load factor was reported at 81.8%, below the average estimate of 82.5% [4] - Fuel gallons consumed were 20.95 million, exceeding the average estimate of 20.21 million [4] - Operating revenues from passenger services were $214.67 million, surpassing the estimated $209.43 million [4] - Other operating revenues were $14.15 million, above the average estimate of $12.67 million [4] - Cargo operating revenues reached $34.8 million, compared to the estimated $32.55 million [4] Stock Performance - Shares of Sun Country Airlines have returned -3.9% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]