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Sep 30, 2023
Sun Country Airlines Q3 2023 Earnings Report
Sun Country Airlines' diversified business model delivered strong results, with revenue up and continued improvement in adjusted operating margin and adjusted earnings per share.
Key Takeaways
Sun Country Airlines reported a strong third quarter in 2023, with total revenue up by 12.3% compared to the third quarter of 2022. The company produced GAAP operating income of $19 million, with a margin of 7.6%, and adjusted operating income of $20 million, with an adjusted margin of 8.1%. The board of directors has authorized an additional $25 million for share repurchases.
Total revenue was up by 12.3% versus the third quarter 2022.
GAAP operating income of $19 million and adjusted operating income of $20 million.
Scheduled service TRASM declined only 5.0%, while scheduled service ASMs grew 15.1%.
Board of directors authorized an additional $25 million for repurchases of Sun Country shares.
Revenue by Segment
Forward Guidance
Sun Country Airlines provided guidance for the fourth quarter of 2023.
Positive Outlook
- Total revenue is expected to be between $242 million and $252 million, representing a 7% to 11% increase compared to Q4 2022.
- Total system block hours are projected to be between 36,000 and 37,000, an 11% to 15% increase year-over-year.
Challenges Ahead
- Operating income margin is expected to be between 3% and 5%, a decrease of (4pp) to (2pp) compared to Q4 2022.
- Economic fuel cost per gallon is estimated at $3.20, an 11% decrease compared to the previous year.
- Effective tax rate is projected at 23%.
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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