Core Insights - Sun Country Airlines reported a total revenue of $256 million for the third quarter of 2025, marking the highest third quarter on record and a 2.4% increase compared to the same period in 2024 [1][3][8] - The company achieved a GAAP diluted EPS of $0.03 and an adjusted diluted EPS of $0.07, with a thirteenth consecutive profitable quarter [1][2][4] - The operational transformation of the cargo segment was completed, with a full fleet of 20 freighter aircraft deployed for Amazon, representing a 14% expansion in total operating aircraft [2][5] Financial Performance - Total operating revenue for Q3 2025 was $255.5 million, up from $249.5 million in Q3 2024, reflecting a 2.4% increase [3][8] - GAAP operating income decreased by 20% to $9.9 million, while adjusted operating income was $12.4 million, down 11% from the previous year [3][4] - Net income for the quarter was $1.6 million, a decline of 33.7% compared to $2.3 million in Q3 2024 [3][4] Revenue Breakdown - Cargo revenue reached $44 million, a significant 50.9% increase year-over-year, driven by a 33.7% increase in cargo block hours [9][8] - Charter revenue was $58.7 million, reflecting a 15.6% increase compared to the previous year [8][9] - Scheduled service revenue decreased by 8.4% to $76.7 million, while ancillary revenue fell by 10.3% to $65.7 million [25] Operational Metrics - System block hours flown increased by 3.8% year-over-year, with cargo block hours up by 33.7% and charter block hours up by 11.1% [7][28] - Scheduled service block hours decreased by 10.9% to support cargo growth, with an expected decline in scheduled service ASMs of approximately 8 to 9% in Q4 2025 [7][8] - The average fare per scheduled passenger increased by 1.1% to $143, with load factors improving by 0.6 percentage points [8][29] Shareholder Returns and Financial Position - The company repurchased $10 million worth of stock during the quarter, maintaining $15 million in share repurchase authority [2][10] - Total liquidity as of September 30, 2025, was $299 million, with net debt at $406 million [12][31] - The company entered into a $108 million Term Loan Facility Agreement, drawing down $54 million to refinance existing loans and aircraft [10][12] Future Guidance - For Q4 2025, the company expects total revenue between $270 million and $280 million, representing a 4% to 8% increase compared to Q4 2024 [15] - Operating income margin is projected to be between 5% and 8%, reflecting a decrease compared to the previous year [15]