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]

Core Insights - Sun Country Airlines Holdings, Inc. (SNCY) reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and showing an increase from $0.06 per share a year ago, resulting in an earnings surprise of +16.67% [1] - The company achieved revenues of $263.62 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.59% and up from $254.38 million year-over-year [2] - Sun Country Airlines has outperformed consensus EPS estimates in all four quarters over the past year and has topped revenue estimates three times in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $248.78 million, while the estimate for the current fiscal year is $1.34 on revenues of $1.1 billion [7] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Transportation - Airline industry, to which Sun Country Airlines belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

Core Insights - Sun Country Airlines reported a total revenue of $264 million for the second quarter of 2025, marking a 3.6% increase compared to the same period in 2024 [3][8] - The company achieved a GAAP diluted EPS of $0.12 and an adjusted diluted EPS of $0.14, reflecting significant year-over-year growth [2][4] - The airline has successfully integrated additional cargo aircraft into its operations, with expectations to have all 20 freighters in service by the end of the third quarter [2][5] Financial Performance - Total operating revenue for the second quarter was $263.6 million, up from $254.4 million in 2024, representing a 3.6% increase [3] - Operating income increased by 31.5% to $16.3 million, with a GAAP operating margin of 6.2% and an adjusted operating margin of 6.8% [3][4] - Net income for the quarter was approximately $6.6 million, a 263% increase from $1.8 million in the previous year [3][4] Cargo and Charter Operations - Cargo revenue surged by 36.8% to $35 million, driven by a 9.5% increase in cargo block hours and new contract rates with Amazon [9][5] - Charter revenue also saw a 6.4% increase, totaling $54 million, although it was slightly below the growth rate of charter block hours [8][9] Capacity and Demand - The company experienced a 3.9% decline in total available seat miles (ASMs) due to a strategic reduction in passenger service to accommodate cargo growth [2][7] - Scheduled service TRASM increased by 3.7%, indicating robust demand despite a 6.2% decrease in scheduled service ASMs [2][8] Cost Structure - CASM increased by 6.3%, while adjusted CASM rose by 11.3%, primarily due to reduced scheduled service capacity [5][10] - Total operating expenses increased by 2.2% year-over-year, reflecting the impact of rising landing fees and airport rent [10][11] Balance Sheet and Liquidity - As of June 30, 2025, total liquidity stood at $207 million, with net debt at $431 million [12][13] - Cash and cash equivalents decreased to $37 million from $83.2 million in the previous year, indicating a need for careful cash management [12][32] Fleet and Future Outlook - The airline's fleet included 45 passenger aircraft and 19 cargo aircraft as of June 30, 2025, with plans to expand the cargo fleet further [14][30] - Guidance for the third quarter of 2025 anticipates total revenue between $250 million and $260 million, reflecting a modest growth outlook [15]

[Second Quarter 2025 Earnings Release](index=1&type=section&id=Second%20Quarter%202025%20Earnings%20Release) Sun Country Airlines reports its twelfth consecutive profitable quarter in Q2 2025, driven by strong cargo growth and healthy passenger demand despite reduced capacity [Executive Summary](index=1&type=section&id=Executive%20Summary) Sun Country Airlines achieved its twelfth consecutive profitable quarter in Q2 2025, with GAAP diluted EPS of $0.12 and adjusted diluted EPS of $0.14, adapting to cargo growth by reducing passenger service capacity while maintaining strong passenger demand - Sun Country Airlines achieved its **twelfth consecutive profitable quarter**[2](index=2&type=chunk) - The company is steadily increasing its cargo fleet, expecting **20 cargo aircraft** by the end of Q3, with **15 in service** by the end of Q2[2](index=2&type=chunk) - Passenger service operations decreased to accommodate cargo growth, with scheduled service Available Seat Miles (ASMs) declining by **6.2%**[2](index=2&type=chunk) - Scheduled service Total Revenue Per Available Seat Mile (TRASM) increased by **3.7%** year-over-year, and total fares grew by **6.5%**, indicating healthy passenger demand[2](index=2&type=chunk) [Overview of Second Quarter Financial Results](index=1&type=section&id=Overview%20of%20Second%20Quarter%20Financial%20Results) In Q2 2025, the company achieved record-high total operating revenue of $264 million, with GAAP net income of $6.6 million and adjusted net income of $7.8 million, reflecting significant growth in both GAAP and adjusted operating margins Key Financial Data for Q2 2025 (GAAP) | Metric | Three Months Ended June 30, 2025 (million USD) | Three Months Ended June 30, 2024 (million USD) | % Change | | :----------------------- | :--------------------------------------------- | :--------------------------------------------- | :------- | | Total Operating Revenue | 263.6 | 254.4 | 3.6 | | Operating Income | 16.3 | 12.4 | 31.5 | | Income Before Income Tax | 8.6 | 3.1 | 177.4 | | Net Income | 6.6 | 1.8 | 263.0 | | Diluted EPS | 0.12 | 0.03 | 300.0 | Key Financial Data for Q2 2025 (Adjusted) | Metric | Three Months Ended June 30, 2025 (million USD) | Three Months Ended June 30, 2024 (million USD) | % Change | | :--------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------- | | Adjusted Operating Income | 17.9 | 13.9 | 28.2 | | Adjusted Income Before Tax | 10.2 | 4.7 | 118.4 | | Adjusted Net Income | 7.8 | 3.0 | 158.7 | | Adjusted Diluted EPS | 0.14 | 0.06 | 133.3 | - GAAP operating margin was **6.2%**, and adjusted operating margin was **6.8%**[4](index=4&type=chunk) [Notable Operational Highlights](index=2&type=section&id=Notable%20Operational%20Highlights) The company's operational strategy in Q2 2025 focused on reallocating capacity to cargo and charter services, resulting in decreased passenger ASMs but significant growth in cargo and charter flight hours [Capacity](index=2&type=section&id=Capacity) In Q2 2025, total system flight hours decreased by 0.5% due to a 6.2% reduction in scheduled service ASMs, which supported a 9.5% increase in cargo flight hours and a 7.9% increase in charter flight hours, with further scheduled service ASM reductions anticipated for Q3 - Total system flight hours decreased by **0.5%** year-over-year[7](index=7&type=chunk) - Scheduled service Available Seat Miles (ASMs) decreased by **6.2%** to support cargo and charter business growth[7](index=7&type=chunk) - Cargo flight hours increased by **9.5%**, and charter flight hours increased by **7.9%**[7](index=7&type=chunk) - Scheduled service ASMs are projected to decrease by approximately **10%** again in Q3 2025[7](index=7&type=chunk) [Revenue](index=2&type=section&id=Revenue) Total revenue for Q2 2025 reached $264 million, a 3.6% increase, driven by a 36.8% surge in cargo revenue and a 6.4% rise in charter revenue, while strong scheduled service demand led to a 3.7% TRASM growth despite a slight load factor decline - Total revenue for Q2 2025 was **$264 million**, a **3.6%** year-over-year increase[8](index=8&type=chunk) Q2 2025 Revenue by Business Segment | Revenue Source | Q2 2025 (million USD) | Q2 2024 (million USD) | % Change | | :------------- | :-------------------- | :-------------------- | :------- | | Cargo Revenue | 35 | 25.4 | 36.8 | | Charter Revenue | 54 | 51.0 | 6.4 | - The growth in cargo revenue was primarily due to an increase in cargo aircraft and new Amazon contract rates effective June 2024[8](index=8&type=chunk) Key Scheduled Service Metrics for Q2 2025 | Metric | Q2 2025 | Q2 2024 | % Change | | :----------------------------- | :------- | :-------- | :------- | | Scheduled Service TRASM (cents) | 10.40 | 10.03 | 3.7 | | Total Fare Per Scheduled Passenger | $151 | $141.71 | 6.5 | | Load Factor | 81.8% | 83.1% | (1.3)pp | [Cost](index=2&type=section&id=Cost) In Q2 2025, Cost Per Available Seat Mile (CASM) increased by 6.3% and adjusted CASM by 11.3%, primarily due to reduced scheduled service capacity supporting cargo growth, with overall costs expected to remain elevated until scheduled service business recovers in late 2026 Q2 2025 Cost Metrics | Metric | Q2 2025 (cents) | Q2 2024 (cents) | % Change | | :------------- | :-------------- | :-------------- | :------- | | CASM | 12.79 | 12.03 | 6.3 | | Adjusted CASM | 8.34 | 7.49 | 11.3 | - Total GAAP operating expenses increased by **2.2%** year-over-year, while total flight hours decreased by **0.5%**[9](index=9&type=chunk) - Costs are expected to remain high for the rest of the year, mainly due to reduced scheduled service flights to increase cargo flights, until scheduled service business resumes growth in late 2026[9](index=9&type=chunk)[10](index=10&type=chunk) - Landing fees and airport rent increased by **9.1%**, and other operating expenses grew by **14.0%**[10](index=10&type=chunk) [Fleet](index=2&type=section&id=Fleet) By the end of Q2 2025, the company had received all eight cargo aircraft under new agreements, with five in service and the remaining three expected by Q3 end, bringing the total cargo fleet to 20, while also managing passenger aircraft leases and retirements - All eight cargo aircraft under the new agreement have been received, with **five in service** and the remaining **three expected by the end of Q3**[9](index=9&type=chunk) - By the end of Q3, the company will operate **20 cargo aircraft**[9](index=9&type=chunk) - Lease agreements for **two passenger aircraft** leased to other operators were extended[9](index=9&type=chunk) - One 737-800 aircraft was retired in Q2, with the company expecting to have **45 passenger aircraft** and **20 cargo aircraft** by the end of 2025[9](index=9&type=chunk) Fleet Composition at End of Q2 2025 | Fleet Type | Number | | :--------------------- | :----- | | Passenger Service Fleet | 45 | | Cargo Fleet | 19 | | Leased to Other Airlines | 5 | [Financial Position and Liquidity](index=3&type=section&id=Financial%20Position%20and%20Liquidity) The company's financial position at the end of Q2 2025 shows a decrease in total assets and liabilities, an increase in total shareholder equity, and stable total liquidity with a slight reduction in net debt [Balance Sheet](index=3&type=section&id=Balance%20Sheet) As of June 30, 2025, total assets were $1,552.1 million, a 4.8% decrease from December 31, 2024, with total liabilities at $939.1 million (down 11.4%) and total shareholder equity at $613.0 million (up 7.5%) Balance Sheet Summary | Metric | June 30, 2025 (million USD) | December 31, 2024 (million USD) | % Change | | :----------------------- | :---------------------------- | :------------------------------ | :------- | | Cash and Cash Equivalents | 37.0 | 83.2 | (55.5) | | Total Assets | 1,552.1 | 1,630.2 | (4.8) | | Total Liabilities | 939.1 | 1,059.8 | (11.4) | | Total Shareholder Equity | 613.0 | 570.4 | 7.5 | | Air Passenger Liabilities | 106.6 | 160.7 | (33.7) | [Liquidity](index=3&type=section&id=Liquidity) As of June 30, 2025, total liquidity was $207 million, largely consistent with $205.6 million at year-end 2024, while net debt slightly decreased to $431 million from $438.2 million Liquidity and Net Debt | Metric | June 30, 2025 (million USD) | December 31, 2024 (million USD) | | :--------------------------- | :---------------------------- | :------------------------------ | | Cash and Cash Equivalents | 37.0 | 83.2 | | Available-for-Sale Securities | 94.6 | 97.6 | | Revolving Credit Facility Availability | 75.0 | 24.7 | | Total Liquidity | 206.6 | 205.6 | | Net Debt | 430.8 | 438.2 | [Third Quarter 2025 Guidance](index=4&type=section&id=Third%20Quarter%202025%20Guidance) The company provides Q3 2025 guidance, projecting total revenue between $250 million and $260 million, with an operating margin of 3% to 6%, and an increase in total system flight hours [Q3 2025 Guidance](index=4&type=section&id=Q3%202025%20Guidance) The company forecasts Q3 2025 total revenue between $250 million and $260 million, representing 0% to 4% year-over-year growth, with economic fuel cost at $2.61 per gallon and an operating margin between 3% and 6%, alongside a 5% to 8% increase in total system flight hours Q3 2025 Performance Guidance | Metric | Q3 2025 | Year-over-Year Change | | :----------------------------- | :---------- | :-------------------- | | Total Revenue (million USD) | $250-$260 | 0-4% | | Economic Fuel Cost (per gallon) | $2.61 | (3)% | | Operating Margin | 3%-6% | (2.6)pp-0.4pp | | Effective Tax Rate | 23% | | | Total System Flight Hours (thousand hours) | 38-39 | 5%-8% | [Company Information](index=4&type=section&id=Company%20Information) This section provides an overview of Sun Country Airlines' business model and details for its Q2 2025 earnings conference call [About Sun Country Airlines](index=4&type=section&id=About%20Sun%20Country%20Airlines) Sun Country Airlines operates as a hybrid low-cost carrier, offering scheduled and charter passenger services, alongside cargo services for Amazon, connecting travelers across the US, Mexico, Central America, Canada, and the Caribbean from its Minnesota headquarters - Sun Country Airlines is a **hybrid low-cost airline** operating through passenger and cargo services[15](index=15&type=chunk) - Headquartered in Minnesota, the company primarily serves **leisure travelers, those visiting friends and relatives, and charter clients**, also providing **cargo services for Amazon**[15](index=15&type=chunk) - Routes cover the **United States, Mexico, Central America, Canada, and the Caribbean**[15](index=15&type=chunk) [Conference Call & Webcast Details](index=4&type=section&id=Conference%20Call%20%26%20Webcast%20Details) Sun Country Airlines will host a conference call on August 1, 2025, at 10:00 AM ET to discuss its Q2 2025 results, with live and archived webcasts available on the company's investor relations website - The conference call will be held on **August 1, 2025, at 10:00 AM ET**[14](index=14&type=chunk) - Live and archived webcasts are available on the company's investor relations website at **https://ir.suncountry.com/news-events/events-and-presentations**[14](index=14&type=chunk) [Legal and Non-GAAP Disclosures](index=4&type=section&id=Legal%20and%20Non-GAAP%20Disclosures) This section provides essential legal disclaimers, including endnotes defining key terms and non-GAAP metrics, forward-looking statements, and an introduction to the use and limitations of non-GAAP financial measures [End Notes](index=4&type=section&id=End%20Notes) Endnotes provide definitions and explanations for specific data and terminology within the report, including details on non-GAAP financial measures, TRASM composition, adjusted CASM calculation, and definitions of liquidity and net debt - Endnotes provide detailed information on **non-GAAP financial measures** and their reconciliation to the most comparable GAAP metrics[17](index=17&type=chunk) - The composition of **scheduled service TRASM** is explained, including scheduled service revenue, ancillary revenue, and ASM-generating revenue[17](index=17&type=chunk) - The calculation method for **adjusted CASM** is defined, excluding fuel costs, non-cash management equity compensation expenses, cargo business costs, depreciation and amortization of leased revenue-generating assets, among others[17](index=17&type=chunk) - Formulas for **total liquidity and net debt** are clearly specified[17](index=17&type=chunk) [Forward Looking Statements](index=5&type=section&id=Forward%20Looking%20Statements) This press release contains forward-looking statements subject to known and unknown risks and uncertainties that could cause actual results to differ materially from expectations, based on views and assumptions as of the release date, with no obligation for the company to update or revise them - This press release contains **forward-looking statements** involving risks and uncertainties that could cause actual results to differ materially from expectations[18](index=18&type=chunk)[19](index=19&type=chunk) - Forward-looking statements are based on views and assumptions as of the release date, and the company undertakes **no obligation to update or revise them**[20](index=20&type=chunk) - Investors should read the entire press release and understand that actual future results may differ materially from expectations[20](index=20&type=chunk) [Non-GAAP Financial Measures Introduction](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20Introduction) The company uses non-GAAP financial measures as supplemental disclosures to provide more meaningful comparisons with industry peers and its own past performance, emphasizing that these metrics are not substitutes for GAAP measures and have limitations - Non-GAAP metrics are used to provide more meaningful comparisons with **industry peers** and the company's **own past performance**[21](index=21&type=chunk) - Investors should consider non-GAAP metrics as **supplemental, not as substitutes** for GAAP financial measures[21](index=21&type=chunk) - Non-GAAP metrics have limitations, may differ from calculations by other companies, and should **not be viewed in isolation or over-relied upon**[21](index=21&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated financial statements, including statements of operations, balance sheet, and cash flow, detailing the company's financial performance and position for Q2 and the first half of 2025 [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) In Q2 2025, total operating revenue increased by 3.6% to $263.6 million, driven by a 36.8% rise in cargo revenue, while operating expenses grew by 2.2% despite an 18.7% decrease in aircraft fuel costs, leading to a 263.0% surge in net income to $6.6 million Q2 2025 Operating Revenue Breakdown | Operating Revenue Source | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | % Change | | :----------------------- | :--------------------- | :--------------------- | :------- | | Scheduled Service | 88,138 | 88,078 | 0.1 | | Charter | 54,271 | 51,009 | 6.4 | | Ancillary | 72,259 | 77,308 | (6.5) | | Passenger | 214,668 | 216,395 | (0.8) | | Cargo | 34,803 | 25,447 | 36.8 | | Other | 14,150 | 12,539 | 12.8 | | Total Operating Revenue | 263,621 | 254,381 | 3.6 | Q2 2025 Operating Expense Breakdown | Operating Expense Source | Q2 2025 (thousand USD) | Q2 2024 (thousand USD) | % Change | | :----------------------- | :--------------------- | :--------------------- | :------- | | Aircraft Fuel | 50,536 | 62,188 | (18.7) | | Salaries, Wages, and Benefits | 89,557 | 79,359 | 12.9 | | Maintenance | 18,250 | 17,339 | 5.3 | | Sales and Marketing | 8,001 | 8,392 | (4.7) | | Depreciation and Amortization | 24,972 | 23,631 | 5.7 | | Ground Handling | 11,353 | 11,368 | (0.1) | | Landing Fees and Airport Rent | 14,971 | 13,723 | 9.1 | | Special Items, Net | 49 | — | NM | | Other Operating, Net | 29,670 | 26,016 | 14.0 | | Total Operating Expenses | 247,359 | 242,016 | 2.2 | H1 2025 Operating Revenue Breakdown | Operating Revenue Source | H1 2025 (thousand USD) | H1 2024 (thousand USD) | % Change | | :----------------------- | :--------------------- | :--------------------- | :------- | | Total Operating Revenue | 590,270 | 565,864 | 4.3 | | Operating Income | 72,508 | 67,541 | 7.4 | | Net Income | 43,112 | 37,125 | 16.1 | [Summary Balance Sheet](index=10&type=section&id=Summary%20Balance%20Sheet) As of June 30, 2025, cash and cash equivalents were $37.0 million, a 55.5% decrease from year-end 2024, with total assets at $1,552.1 million, total liabilities at $939.1 million, and total shareholder equity at $613.0 million Key Balance Sheet Data | Metric | June 30, 2025 (million USD) | December 31, 2024 (million USD) | % Change | | :----------------------- | :---------------------------- | :------------------------------ | :------- | | Cash and Cash Equivalents | 37.0 | 83.2 | (55.5) | | Total Assets | 1,552.1 | 1,630.2 | (4.8) | | Air Passenger Liabilities | 106.6 | 160.7 | (33.7) | | Total Liabilities | 939.1 | 1,059.8 | (11.4) | | Total Shareholder Equity | 613.0 | 570.4 | 7.5 | [Summary Cash Flow](index=11&type=section&id=Summary%20Cash%20Flow) In the first half of 2025, net cash from operating activities was $36.3 million (down 6.7%), net cash used in investing activities was $8.0 million, and net cash used in financing activities was $75.4 million, resulting in period-end cash, cash equivalents, and restricted cash of $53.3 million (up 56.8%) H1 2025 Key Cash Flow Data | Metric | H1 2025 (million USD) | H1 2024 (million USD) | % Change | | :----------------------------------- | :-------------------- | :-------------------- | :------- | | Net Cash from Operating Activities | 36.3 | 38.9 | (6.7) | | Net Cash (Used in)/Provided by Investing Activities | (8.0) | 3.5 | (327.5) | | Net Cash Used in Financing Activities | (75.4) | (72.0) | 4.7 | | Cash, Cash Equivalents, and Restricted Cash at Period End | 53.3 | 34.0 | 56.8 | [Key Operating Statistics](index=8&type=section&id=Key%20Operating%20Statistics) This section details key operational statistics for Q2 and the first half of 2025, highlighting changes in scheduled service ASMs, cargo flight hours, total system flight hours, and employee count [Operating Statistics (Q2 & YTD)](index=8&type=section&id=Operating%20Statistics%20(Q2%20%26%20YTD)) In Q2 2025, scheduled service ASMs decreased by 6.2% year-over-year while cargo flight hours increased by 9.5%, leading to a 0.5% decline in total system flight hours, whereas for the first half, scheduled service ASMs grew by 0.6% and total system flight hours by 2.7%, with a 7.0% increase in employee count Q2 2025 Key Operating Statistics | Metric | Q2 2025 | Q2 2024 | % Change | | :------------------------- | :-------- | :---------- | :------- | | Scheduled Service ASMs (thousand) | 1,571,210 | 1,675,927 | (6.2) | | Scheduled Service Load Factor | 81.8% | 83.1% | (1.3)pp | | Cargo Flight Hours | 9,157 | 8,363 | 9.5 | | Total System ASMs (thousand) | 1,933,871 | 2,011,921 | (3.9) | | Total System Flight Hours | 37,086 | 37,281 | (0.5) | | Number of Employees (period end) | 3,293 | 3,079 | 7.0 | H1 2025 Key Operating Statistics | Metric | H1 2025 | H1 2024 | % Change | | :------------------------- | :---------- | :---------- | :------- | | Scheduled Service ASMs (thousand) | 3,591,755 | 3,568,818 | 0.6 | | Scheduled Service Load Factor | 82.8% | 85.4% | (2.6)pp | | Cargo Flight Hours | 16,763 | 16,052 | 4.4 | | Total System ASMs (thousand) | 4,304,626 | 4,223,807 | 1.9 | | Total System Flight Hours | 77,767 | 75,717 | 2.7 | | Number of Employees (period end) | 3,293 | 3,079 | 7.0 | [Non-GAAP Financial Measures Reconciliations](index=12&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliations) This section provides detailed reconciliations of non-GAAP financial measures, including adjusted operating income, adjusted income before income tax, adjusted net income and EPS, adjusted EBITDA, and adjusted CASM, to their most comparable GAAP counterparts [Adjusted Operating Income](index=12&type=section&id=Adjusted%20Operating%20Income) Adjusted operating income for Q2 2025 was $17.9 million, a 28.2% year-over-year increase, with an adjusted operating margin of 6.8%, while for the first half, it reached $77.6 million, growing by 9.9%, with an adjusted operating margin of 13.1% Adjusted Operating Income Reconciliation | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | H1 2025 (million USD) | H1 2024 (million USD) | | :--------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Operating Income | 16.3 | 12.4 | 72.5 | 67.5 | | Special Items, Net | — | — | 1.8 | — | | Equity Compensation Expense | 1.6 | 1.6 | 3.3 | 3.1 | | Adjusted Operating Income | 17.9 | 13.9 | 77.6 | 70.6 | | Operating Income Margin | 6.2% | 4.9% | 12.3% | 11.9% | | Adjusted Operating Income Margin | 6.8% | 5.5% | 13.1% | 12.5% | [Adjusted Income Before Income Tax](index=13&type=section&id=Adjusted%20Income%20Before%20Income%20Tax) Adjusted income before income tax for Q2 2025 was $10.2 million, a 118.4% year-over-year increase, with an adjusted pre-tax margin of 3.9%, and for the first half, it was $62.5 million, growing by 18.5%, with an adjusted pre-tax margin of 10.6% Adjusted Income Before Income Tax Reconciliation | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | H1 2025 (million USD) | H1 2024 (million USD) | | :--------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Income Before Income Tax, Reported | 8.6 | 3.1 | 56.7 | 49.6 | | Special Items, Net | — | — | 1.8 | — | | Equity Compensation Expense | 1.6 | 1.6 | 3.3 | 3.1 | | Adjusted Income Before Income Tax | 10.2 | 4.7 | 62.5 | 52.7 | | Pre-Tax Margin | 3.2% | 1.2% | 9.6% | 8.8% | | Adjusted Pre-Tax Margin | 3.9% | 1.8% | 10.6% | 9.3% | [Adjusted Net Income and Earnings per Share](index=13&type=section&id=Adjusted%20Net%20Income%20and%20Earnings%20per%20Share) Adjusted net income for Q2 2025 was $7.8 million, with adjusted diluted EPS of $0.14, while for the first half, adjusted net income reached $47.6 million, with adjusted diluted EPS of $0.86 Adjusted Net Income and EPS Reconciliation (Q2) | Metric | Q2 2025 (million USD) | Q2 2025 (Diluted EPS) | Q2 2024 (million USD) | Q2 2024 (Diluted EPS) | | :--------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Net Income | 6.6 | 0.12 | 1.8 | 0.03 | | Equity Compensation Expense | 1.6 | 0.03 | 1.6 | 0.03 | | Income Tax Impact of Adjustments, Net | (0.4) | (0.01) | (0.4) | (0.01) | | Adjusted Net Income | 7.8 | 0.14 | 3.0 | 0.06 | Adjusted Net Income and EPS Reconciliation (H1) | Metric | H1 2025 (million USD) | H1 2025 (Diluted EPS) | H1 2024 (million USD) | H1 2024 (Diluted EPS) | | :--------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Net Income | 43.1 | 0.78 | 37.1 | 0.67 | | Special Items, Net | 1.8 | 0.03 | — | — | | Equity Compensation Expense | 3.3 | 0.06 | 3.1 | 0.06 | | Income Tax Impact of Adjustments, Net | (1.3) | (0.02) | (0.7) | (0.01) | | Adjusted Net Income | 47.6 | 0.86 | 39.5 | 0.72 | [Adjusted EBITDA](index=14&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 was $42.8 million, with an adjusted EBITDA margin of 16.2%, and for the first half, it reached $127.4 million, with an adjusted EBITDA margin of 21.6% Adjusted EBITDA Reconciliation | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | H1 2025 (million USD) | H1 2024 (million USD) | | :--------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Net Income | 6.6 | 1.8 | 43.1 | 37.1 | | Interest Income | (1.5) | (1.8) | (3.5) | (4.2) | | Interest Expense | 9.2 | 11.1 | 18.8 | 22.2 | | Special Items, Net | — | — | 1.8 | — | | Equity Compensation Expense | 1.6 | 1.6 | 3.3 | 3.1 | | Income Tax Provision | 2.0 | 1.3 | 13.6 | 12.5 | | Depreciation and Amortization | 25.0 | 23.6 | 49.8 | 47.4 | | Adjusted EBITDA | 42.8 | 37.6 | 127.4 | 118.1 | | Adjusted EBITDA Margin | 16.2% | 14.8% | 21.6% | 20.9% | [Adjusted CASM](index=14&type=section&id=Adjusted%20CASM) Adjusted CASM is a non-GAAP metric that excludes non-core operating costs like fuel, cargo business expenses, equity compensation, and depreciation of leased revenue assets, providing better operational cost visibility and comparability with peers, with Q2 2025 adjusted CASM at 8.34 cents and H1 at 7.79 cents - Adjusted CASM provides better operational cost visibility by excluding fuel costs, cargo business costs, equity compensation expenses, and depreciation and amortization of leased revenue-generating assets[42](index=42&type=chunk)[45](index=45&type=chunk) - This metric is used to evaluate **quarterly and annual cost performance** and for **comparison with other airlines** in the industry[42](index=42&type=chunk) Adjusted CASM Reconciliation (Q2) | Metric | Q2 2025 Operating Expenses (million USD) | Q2 2025 Per ASM (cents) | Q2 2024 Operating Expenses (million USD) | Q2 2024 Per ASM (cents) | | :----------------------------------- | :--------------------------------------- | :---------------------- | :--------------------------------------- | :---------------------- | | CASM | 247.4 | 12.79 | 242.0 | 12.03 | | Less: Aircraft Fuel | 50.5 | 2.61 | 62.2 | 3.09 | | Less: Equity Compensation Expense | 1.6 | 0.08 | 1.6 | 0.08 | | Less: Cargo Expenses, Not Otherwise Adjusted | 32.1 | 1.66 | 25.3 | 1.26 | | Adjusted CASM | 161.4 | 8.34 | 150.7 | 7.49 | Adjusted CASM Reconciliation (H1) | Metric | H1 2025 Operating Expenses (million USD) | H1 2025 Per ASM (cents) | H1 2024 Operating Expenses (million USD) | H1 2024 Per ASM (cents) | | :----------------------------------- | :--------------------------------------- | :---------------------- | :--------------------------------------- | :---------------------- | | CASM | 517.8 | 12.03 | 498.3 | 11.80 | | Less: Aircraft Fuel | 115.2 | 2.68 | 132.5 | 3.14 | | Less: Equity Compensation Expense | 3.3 | 0.08 | 3.1 | 0.07 | | Less: Cargo Expenses, Not Otherwise Adjusted | 58.4 | 1.36 | 50.2 | 1.19 | | Adjusted CASM | 335.3 | 7.79 | 307.4 | 7.28 |

Group 1 - Sun Country Airlines will hold its second quarter 2025 earnings call on August 1 at 10:00 a.m. Eastern Time [1] - Interested parties can access the live call and subsequent replay through the Sun Country investor relations website [1] - The company is a hybrid low-cost air carrier focused on leisure and visiting friends and relatives (VFR) passengers, charter customers, and cargo services [2] Group 2 - Sun Country Airlines is based in Minnesota and operates flights throughout the United States and to destinations in Mexico, Central America, Canada, and the Caribbean [2] - The airline dynamically deploys shared resources across its scheduled service, charter, and cargo businesses [2]

Core Insights - Seeking Alpha welcomes Saba Sadiq as a new contributing analyst, emphasizing the platform's commitment to diverse investment insights [1] - Saba Sadiq, a psychologist with a strong interest in finance, aims to provide data-driven insights to help investors navigate market uncertainties [2] Company and Industry Summary - The article highlights the importance of a data-driven approach in investment analysis, which is crucial for making informed financial decisions [2] - Seeking Alpha encourages contributions from various analysts, indicating a collaborative environment for sharing investment ideas [1]

Business Model and Revenue Streams - Sun Country Airlines has a unique business model with diversified revenue streams including passenger (scheduled service and charter) and cargo segments[7] - In fiscal year 2023, the passenger segment generated $730 million from scheduled service and $190 million from charter flights[7] - The cargo segment generated $100 million in revenue in fiscal year 2023, operating 12 737-800 freighters for Amazon[7] - 80% of charter revenue is under long-term contracts, seamlessly integrated with scheduled service[7, 30] Financial Performance and Growth - Revenue has grown by 80% since the implementation of the new model, reaching $1050 million in 2023[9] - The company demonstrated outperformance during COVID and through the recovery, with industry-leading margins[11, 14] - The adjusted pre-tax margin for 2023 was 99%[15] Operational Efficiency and Network - Only 2% of the total scheduled service routes are daily, year-round routes, indicating a highly variable route network[17] - The airline dynamically reallocates capacity to focus flying during peak demand to maximize yields[20] - The airline has been growing its share at MSP (Minneapolis-St Paul) at the expense of smaller scale carriers[22, 23] - Since 2018, Sun Country's cumulative change in MSP point-of-origin passenger share has increased, while others have decreased[24] Ancillary Revenue and Fleet - The company sees potential for ancillary revenue per passenger growth, estimating a $2 to $5 upside per passenger[26] - The company is growing its fleet responsibly with low capital outlays, aiming for 70+ aircraft in service by 2026/2027[38, 39]

Company Participation - Sun Country Airlines' CFO Bill Trousdale will participate in a panel at the Morgan Stanley Travel & Leisure Conference on June 3 at 10:15 AM EST [1] - Trousdale will also engage in a fireside chat at the TD Cowen Future of the Consumer Conference on June 4 at 1:15 PM EST [1] - Live webcasts of these events will be available on the Sun Country investor relations website [1] Company Overview - Sun Country Airlines is a hybrid low-cost air carrier focused on connecting guests to leisure destinations and facilitating transformative experiences [2] - The company operates a synergistic business model that includes scheduled service, charter, and cargo operations [2] - Based in Minnesota, Sun Country primarily serves leisure travelers and charter customers, and provides cargo services to Amazon, with flights across the U.S. and to Mexico, Central America, Canada, and the Caribbean [2]

Core Points - Sun Country Airlines has extended its booking schedule through April 28, 2026, allowing customers to plan travel for winter and spring breaks in 2026 [1] - The airline will resume many popular daily routes for the winter and spring travel season, including destinations such as Fort Myers, Orlando, Las Vegas, and Phoenix, with operations to 10 Florida destinations, six Mexico destinations, and 11 Caribbean and Central American destinations [2] Company Overview - Sun Country Airlines operates nearly 100 airports, offering safe, reliable, and affordable flights with modern seating, in-seat power, and free in-flight entertainment [3] - The airline focuses on leisure and visiting friends and relatives (VFR) passengers, charter customers, and provides cargo services to Amazon, with flights across the United States and to Mexico, Central America, Canada, and the Caribbean [4]