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Mar 31, 2023
Sun Country Airlines Q1 2023 Earnings Report
Sun Country Airlines reported record Q1 2023 revenue, GAAP diluted EPS, and operating income.
Key Takeaways
Sun Country Airlines reported a strong first quarter in 2023, with record revenue of $294 million, a 29.8% increase year-over-year. GAAP diluted EPS reached $0.64, and operating income was $56 million, both also record highs. The company saw a 20.8% increase in total average fare and an 8.6 percentage point gain in load factor compared to the first quarter of 2022.
Total operating revenue increased by 29.8% year-over-year, reaching $294.1 million.
GAAP operating income increased by 155.5% year-over-year, reaching $55.8 million.
Net income increased significantly by 953.8% year-over-year, reaching $38.3 million.
Adjusted diluted earnings per share increased by 240.0% year-over-year, reaching $0.68.
Revenue by Segment
Forward Guidance
Sun Country Airlines provided guidance for the second quarter of 2023, expecting total revenue between $255 million and $265 million and an operating income margin between 11% and 16%.
Positive Outlook
- Total revenue is expected to increase by 16% to 21% compared to Q2 2022.
- Operating income margin is projected to be between 11% and 16%, a 9 to 14 percentage point increase from Q2 2022.
- Total system block hours are expected to increase by 11% to 14% compared to Q2 2022.
- Economic fuel cost per gallon is estimated to be $2.85, a 35% decrease year-over-year.
- The company anticipates pressure on non-fuel CASM to ease during the year.
Challenges Ahead
- Effective tax rate is expected to be 23%.
- Decreased aircraft utilization levels negatively impacted unit costs in Q1.
- The company is normalizing its aircraft utilization.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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