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Mar 31, 2025
Sun Country Airlines Q1 2025 Earnings Report
Sun Country Airlines reported financial results for the first quarter ended March 31, 2025.
Key Takeaways
Sun Country Airlines reported strong first quarter 2025 results with record total revenue of $327 million and record adjusted operating income of $60 million. The diversified business model, driven by robust growth in charter and cargo segments, offset weaker scheduled service demand.
Reported total operating revenue of $326.6 million, a 4.9% increase year-over-year.
Achieved GAAP diluted EPS of $0.66 and adjusted diluted EPS of $0.72.
Delivered GAAP operating income of $56.2 million and adjusted operating income of $59.7 million.
Announced a new $25 million share repurchase authority.
Revenue by Segment
Forward Guidance
For the second quarter of 2025, Sun Country Airlines expects total revenue between $250 million and $260 million, economic fuel cost per gallon of $2.44, operating income margin between 4% and 7%, effective tax rate of 23%, and total system block hours between 36,000 and 37,000.
Positive Outlook
- Expected strength in the charter and cargo businesses to persist.
- Plan to add five more cargo aircraft to the fleet by the end of the third quarter, bringing the total to 20.
- Proactively re-sizing scheduled service business to grow cargo business at improved economics.
- Positioned well to rely on other portions of the business less impacted by macro weakness.
- Economic fuel cost per gallon expected to decrease by 15% compared to Q2 2024.
Challenges Ahead
- Scheduled service ASMs expected to decline in the second quarter 2025 by approximately seven percent.
- Total revenue guidance implies a decrease or slight increase compared to Q2 2024.
- Operating income margin guidance is lower than Q1 2025 performance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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