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Dec 31, 2021
Sun Country Airlines Q4 2021 Earnings Report
Sun Country Airlines reported mixed results with a net loss but a strong adjusted operating margin.
Key Takeaways
Sun Country Airlines reported a net loss of $0.6 million for Q4 2021, but achieved an adjusted operating income of $15 million, representing a 9% adjusted operating margin. The company faced challenges including weather conditions, staffing outages, and a technology issue, but saw a rebound in bookings starting in mid-January. Full year adjusted net profit was $20 million, or $0.33 per share.
Q4 GAAP diluted EPS was ($0.01), while adjusted diluted EPS was $0.10.
Q4 GAAP operating income was $11 million, while adjusted operating income was $15 million.
Total revenue for Q4 2021 was $173 million, 5% higher than Q4 2019.
The company's charter service revenue was $39 million, up 15% from Q3 2021.
Revenue by Segment
Forward Guidance
The company did not provide specific financial guidance for Q1 2022 beyond stating they've committed to take delivery of two more aircraft in first quarter 2022 and has executed LOI’s for an additional 5 aircraft for delivery in 2022. The Company expects to add eight or more total aircraft to its passenger fleet this year.
Positive Outlook
- Beginning in mid-January, the company has seen a very strong rebound in bookings.
- The Major League Soccer and Caesars agreements signed in 2021 will ramp up meaningfully in early 2022.
- The company continues to grow sensibly through the recovery.
- Charter activity continues to recover as block hours have grown sequentially for three consecutive quarters from the second to the fourth quarter of 2021.
- Sun Country has committed to take delivery of two more aircraft in first quarter 2022 and has executed LOI’s for an additional 5 aircraft for delivery in 2022.
Challenges Ahead
- Operations were challenged by harsh weather conditions and staffing outages driven by the Omicron variant.
- The company faced a technology issue that impacted them during the peak Christmas holiday travel period.
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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