Sun Country Airlines is a new breed of hybrid low-cost air carrier, whose mission is to connect guests to their favorite people and places, to create lifelong memories and transformative experiences. Sun Country dynamically deploys shared resources across our synergistic scheduled service, charter, and cargo businesses. Based in Minnesota, we focus on serving leisure and visiting friends and relatives ("VFR") passengers and charter customers and providing cargo service to Amazon, with flights throughout the ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-40217 Sun Country Airlines Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 82-4092570 (State or other jurisdiction of incorp ...

Financial Data and Key Metrics Changes - The company reported total revenue of $326.6 million for Q1 2025, marking a 4.9% increase compared to Q1 2024, and the highest quarterly revenue on record [15][16] - Operating margin for the quarter was 17.2%, with an adjusted operating margin of 18.3%, expected to be among the highest in the industry [15][16] - Diluted adjusted EPS for the quarter was $0.72, reflecting the resilience of the diversified business model [15][16] Business Line Data and Key Metrics Changes - Revenue for the passenger segment, including scheduled service and charter businesses, grew by 4.1% year over year [16] - Charter revenue increased by 15.6% to $55 million, driven by a 10.7% growth in charter block hours [17] - Cargo segment revenue grew by 17.6% to $28.2 million, despite a 1.1% decrease in cargo block hours [18] Market Data and Key Metrics Changes - Scheduled service TRASM declined by 4.7% as scheduled service ASMs increased by 6.7% [16] - The company expects scheduled service ASMs to decrease by approximately 7% in Q2 2025 [10][17] - Close-in fares accelerated into April, indicating positive demand for the summer season [10][11] Company Strategy and Development Direction - The company aims to leverage its diversified business model to deliver industry-leading profitability throughout all cycles [5][8] - Execution on cargo expansion is ongoing, with plans to have all eight additional aircraft in service by the end of summer 2025 [9] - The company plans to allocate pilot resources to support cargo growth, temporarily reducing scheduled service capacity [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming during industry stress due to the strength of the diversified model and reliable demand in the home market [8] - The company anticipates a doubling of cargo revenue by September 2025, driven by the addition of new aircraft and increased unit revenue [9][66] - Management noted that the leisure market needs to shrink in the U.S. to regain pricing power, potentially through reorganizations or M&A activity [29] Other Important Information - The company has a total liquidity of $227.1 million at the end of Q1 2025 and plans to continue deleveraging, with net debt levels expected to fall below zero by 2028 [20][21] - The company repurchased $10 million of shares during the quarter and received an additional $25 million share repurchase authorization from the board [21][22] - The company was awarded Air Transport World's airline leader of the year for 2025 [13] Q&A Session Summary Question: Can you talk about the ramp of aircraft utilization and profitability on the cargo side? - Management indicated that pilot credit hours will grow by 10% annually, but total system block hour growth will be below that as the focus shifts to cargo [25] Question: What do you think other carriers will need to do regarding peak versus off-peak flying? - Management believes the leisure space needs to shrink in the U.S. to regain pricing power, potentially through reorganizations or M&A [29] Question: Can you elaborate on demand trends through the quarter and into April? - Management reported strong performance in January, but load factor was missed in February and March due to high fares [36] Question: Can you discuss the reasoning behind tripling your revolver? - The increase was primarily due to the growth of the company since the IPO, not specifically for opportunistic purposes [41][44] Question: Can you talk about the new credit card deal with Synchrony? - Management expressed excitement about the new co-brand partnership, which is expected to improve revenue share starting in 2026 [52][54] Question: How should we think about the cargo revenue ramp this year and next? - Management expects a doubling of cargo revenue by September, with a gradual ramp-up as new aircraft are delivered [66] Question: Have you seen any share shift due to changes in product offerings from low-cost carriers? - Management believes their product is well-positioned and does not anticipate significant share shifts [93] Question: What are the guidelines for M&A in terms of leverage and liquidity? - Management emphasized the importance of maintaining operational flexibility and noted that liquidity is not as sensitive due to contracted revenue [99][100]

Financial Data and Key Metrics Changes - The company reported total revenue of $326.6 million for Q1 2025, marking a 4.9% increase compared to Q1 2024, and the highest quarterly revenue on record [15][16] - Operating margin for the quarter was 17.2%, with an adjusted operating margin of 18.3%, expected to be among the highest in the industry [15][16] - Diluted adjusted EPS for the quarter was $0.72, reflecting the resilience of the diversified business model [15][16] Business Line Data and Key Metrics Changes - Revenue for the passenger segment, including scheduled service and charter businesses, grew by 4.1% year over year [16] - Charter revenue increased by 15.6% to $55 million, driven by a 10.7% growth in charter block hours [17] - Cargo segment revenue grew by 17.6% to $28.2 million, despite a 1.1% decrease in cargo block hours [18] Market Data and Key Metrics Changes - Scheduled service TRASM declined by 4.7% as scheduled service ASMs increased by 6.7% [16] - The company expects scheduled service ASMs to decrease by approximately 7% in Q2 2025 [17] - Close-in fares accelerated into April, indicating positive demand for the summer season [10][11] Company Strategy and Development Direction - The company aims to leverage its diversified business model to deliver industry-leading profitability throughout all cycles [5][6] - Execution on cargo expansion is ongoing, with plans to have all eight additional aircraft in service by the end of summer 2025 [9] - The company is focusing on reallocating resources to maximize profitability and minimize earnings volatility [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming during times of stress due to the strength of the diversified model and reliable demand in the home market [8] - The company anticipates a temporary drawdown in scheduled service to absorb cargo growth, which is expected to provide a tailwind for scheduled service unit revenues [10] - Management noted that the leisure space in the U.S. may need to shrink for pricing power to return, potentially through reorganizations or M&A activity [29] Other Important Information - The company has a total liquidity of $227.1 million at the end of Q1 2025 and plans to continue deleveraging, with net debt levels expected to fall below zero by 2028 [20][21] - The company repurchased $10 million of shares during the quarter and received an additional $25 million share repurchase authorization from the board [21][22] - The company was awarded Air Transport World's airline leader of the year for 2025 [13] Q&A Session Summary Question: Can you talk about the ramp of aircraft utilization and profitability on the cargo side? - Management indicated that pilot credit hours will grow by 10% a year, but total system block hour growth will be below that as they expand into cargo [25] Question: What do you think other carriers will need to do regarding peak versus off-peak flying? - Management believes the leisure space needs to shrink in the U.S. for pricing power to return, potentially through reorganizations or M&A activity [29] Question: Can you elaborate on demand through the quarter and into April? - Management reported strong performance in January, but load factor missed expectations in February and March due to high fares [36] Question: Can you discuss the reasoning behind tripling your revolver? - The increase was primarily due to the growth of the company since the IPO, not specifically for opportunistic purposes [41][46] Question: Can you talk about the new credit card deal with Synchrony? - Management expressed excitement about the new co-brand partnership, which is expected to improve revenue share, but benefits will not hit the P&L until 2026 [52][54] Question: How should we think about the cargo revenue ramp this year and next? - Management expects cargo revenue to double by September, with a significant increase in revenue per block hour [66][68] Question: Have you seen any share shift due to changes in product offerings from low-cost carriers? - Management believes they have a strong product and brand presence, which positions them well against competitors [95] Question: What are the guidelines for M&A in terms of leverage and liquidity? - Management stated that they are comfortable with their current liquidity position and have significant headroom on the balance sheet for potential opportunities [100][102]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 reached $326.6 million, marking a 4.9% increase compared to Q1 2024, and is the highest quarterly revenue on record for the company [14][15] - Operating margin for the quarter was 17.2%, with adjusted operating margin at 18.3%, expected to be among the highest in the industry [15] - Diluted adjusted EPS for the quarter was $0.72, reflecting the resilience of the diversified business model [15] - Total operating expenses grew by 5.5% on a 5.8% increase in total block hours, with adjusted CASM increasing by 3.5% year-over-year [18][20] Business Line Data and Key Metrics Changes - Passenger segment revenue, including scheduled service and charter businesses, grew by 4.1% year-over-year [15] - Charter revenue increased by 15.6% to $55 million, driven by a 10.7% growth in charter block hours [15] - Cargo segment revenue grew by 17.6% to $28.2 million, despite a 1.1% decrease in cargo block hours, with revenue per block hour up by 18.9% [17][18] Market Data and Key Metrics Changes - Scheduled service TRASM declined by 4.7% as scheduled service ASMs increased by 6.7% [15] - The company expects scheduled service ASMs to decrease by approximately 7% in Q2 2025 as resources are allocated to cargo growth [15][19] Company Strategy and Development Direction - The company aims to leverage its diversified business model to maintain industry-leading profitability through various cycles [4][7] - Plans to expand the cargo fleet with eight additional aircraft, with three already inducted into service [7][8] - The company anticipates cargo revenue to double by September 2025, with two-thirds of flights under committed contracts [8][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming competitors due to the strength of the diversified model and reliable demand in the home market [7] - There is an expectation of margin expansion in the latter half of the year as cargo growth is absorbed and passenger fleet utilization is improved [102] - Management noted that the leisure market may need to consolidate to regain pricing power [27] Other Important Information - The company has a total liquidity of $227.1 million and plans to continue deleveraging, with net debt levels expected to fall below zero by 2028 [20] - The company repurchased $10 million of shares during the quarter and received an additional $25 million share repurchase authorization [20][21] Q&A Session Summary Question: Can you talk about the ramp of aircraft utilization and profitability on the cargo side? - Management indicated that pilot credit hours will grow by 10% annually, but total system block hour growth will be below that as cargo expands [23][24] Question: What do you think other carriers will need to do regarding off-peak flying? - Management suggested that the leisure space in the US needs to shrink to regain pricing power, potentially through reorganizations or M&A activity [27] Question: Can you elaborate on demand trends through the quarter? - Management reported strong performance in January, but load factors were missed in February and March due to high fares and slight demand weakening [30][32] Question: Can you discuss the reasoning behind tripling your revolver? - The increase was primarily due to the growth of the company since the IPO, with the previous revolver being insufficient for current revenue levels [39][41] Question: Can you talk about the new credit card deal with Synchrony? - Management expressed excitement about the new co-branding agreement, which is expected to improve revenue share, although significant benefits will not be realized until 2026 [49][51] Question: How should we think about the cargo revenue ramp this year and next? - Management expects cargo revenue to double by September, with a gradual ramp-up as additional aircraft are inducted [63][65] Question: Have you seen any share shift due to changes in low-cost carriers' offerings? - Management believes their product remains strong and well-positioned, with no immediate changes planned [91][92] Question: What are the guidelines for M&A in terms of leverage and liquidity? - Management emphasized the importance of maintaining operational flexibility and protecting the unique business model, with current liquidity levels being comfortable [96][98]

Core Insights - Sun Country Airlines Holdings, Inc. reported a revenue of $326.65 million for the quarter ended March 2025, reflecting a 4.9% increase year-over-year and a slight surprise of +0.13% over the Zacks Consensus Estimate of $326.22 million [1] - The earnings per share (EPS) for the quarter was $0.72, up from $0.66 in the same quarter last year, resulting in an EPS surprise of +2.86% compared to the consensus estimate of $0.70 [1] Financial Performance Metrics - The total available seat miles (ASMs) for the company was 2.37 billion, exceeding the two-analyst average estimate of 2.01 billion [4] - The fuel cost per gallon was reported at $2.66, slightly lower than the two-analyst average estimate of $2.70 [4] - Scheduled service ASMs were 2.02 billion, matching the two-analyst average estimate of 2.01 billion [4] - The company consumed 25.17 million gallons of fuel, slightly above the average estimate of 25.03 million gallons [4] - Revenue passenger miles for scheduled services were reported at 1.69 billion, aligning with the average estimate [4] - The load factor was 83.5%, which is below the average estimate of 84% [4] - Operating revenues from passenger services were $285.89 million, surpassing the average estimate of $282.76 million [4] - Other operating revenues were $12.60 million, falling short of the average estimate of $14.68 million [4] - Cargo operating revenues were $28.16 million, below the average estimate of $29.81 million [4] Stock Performance - Over the past month, shares of Sun Country Airlines have returned -20.1%, contrasting with the Zacks S&P 500 composite's -0.7% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Sun Country Airlines Holdings, Inc. (SNCY) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.86%. A quarter ago, it was expected that this company would post earnings of $0.21 per share when it actually produced earnings of $0.27, delivering a surprise of 28.57%.Over the last four qua ...

Financial Performance - Sun Country Airlines reported total revenue of $327 million for Q1 2025, marking a 4.9% increase compared to Q1 2024 [3][7] - The company achieved GAAP diluted EPS of $0.66 and adjusted diluted EPS of $0.72, reflecting a year-over-year increase of 3.1% and 9.1% respectively [3][39] - GAAP operating income was $56 million with a margin of 17.2%, while adjusted operating income reached $60 million with a margin of 18.3% [3][4] Business Segments - Growth in charter and cargo businesses helped offset lower scheduled service revenue, demonstrating the effectiveness of the company's diversified business model [2][4] - Charter service revenue increased by 15.6% year-over-year to $55 million, while cargo revenue rose by 17.6% to $28 million [7][8] Cost and Expenses - Total GAAP operating expenses increased by 5.5% year-over-year, primarily due to a 5.8% rise in total block hours [9] - Significant non-fuel expenses included a 12.9% increase in salaries, driven by an increase in pilot headcount and wage scale adjustments [9] Capacity and Operations - System block hours flown grew by 5.8% year-over-year, with a 6.7% increase in scheduled service ASMs and a 10.7% increase in charter block hours [6] - Scheduled service TRASM decreased by 4.7% year-over-year, while the total fare per scheduled passenger increased by 1.0% [7][27] Liquidity and Financial Position - Total liquidity as of March 31, 2025, was $227 million, with net debt at $447 million [12][28] - The company completed a secondary public offering and entered into a four-year $75 million revolving credit facility [11][12] Future Outlook - For Q2 2025, the company expects total revenue between $250 million and $260 million, with an operating income margin projected between 4% and 7% [15]

Exhibit 99.1 Sun Country Airlines Reports First Quarter 2025 Results MINNEAPOLIS. May 1, 2025. Sun Country Airlines Holdings, Inc. ("Sun Country Airlines," "Sun Country," the "Company") (NASDAQ: SNCY) today reported financial results for its first quarter ended March 31, 2025. "Sun Country is pleased to report our eleventh consecutive profitable quarter with GAAP EPS of $0.66 and adjusted diluted EPS of $0.72 ," said Jude Bricker, Chief Executive Officer of Sun Country. "Despite the challenging scheduled re ...

The market expects Sun Country Airlines Holdings, Inc. (SNCY) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is ...