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Sep 30, 2024
Sun Country Airlines Q3 2024 Earnings Report
Sun Country Airlines reported its highest third quarter revenue on record, driven by growth in charter and cargo businesses, which offset lower scheduled service revenue. The company achieved its ninth consecutive profitable quarter.
Key Takeaways
Sun Country Airlines reported a profitable third quarter, achieving record third-quarter revenue of $249 million. The company's diversified business model, with strong growth in charter and cargo, helped offset weaker scheduled service demand. GAAP EPS was $0.04, and adjusted EPS was $0.06. The company's GAAP operating margin was 5.0%, and the adjusted operating margin was 5.6%.
Achieved ninth consecutive profitable quarter.
Reported highest third quarter total revenue on record.
Charter and cargo businesses showed robust growth, offsetting lower scheduled service revenue.
GAAP operating margin of 5.0% and adjusted operating margin of 5.6% exceeded the top end of guidance.
Revenue by Segment
Forward Guidance
Sun Country Airlines provided guidance for the fourth quarter of 2024, with total revenue expected to be between $250 million and $260 million, representing a 2% to 6% increase compared to Q4 2023. The operating income margin is projected to be between 7% and 9%.
Positive Outlook
- Total revenue is expected to be between $250 million and $260 million, a 2% to 6% increase compared to Q4 2023.
- Operating income margin is projected to be between 7% and 9%.
- Total system block hours are estimated to be between 36.5 and 37.5 thousand, a 2% to 5% increase year-over-year.
- Strength in charter and cargo businesses is expected to persist.
- Improving trends in scheduled service unit revenue are anticipated in the fourth quarter and into 2025.
Challenges Ahead
- Economic fuel cost per gallon is estimated at $2.47, a 20% decrease compared to Q4 2023.
- Effective tax rate is projected to be 23%.
- Domestic market continues to be impacted by overcapacity.
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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