Sun Country Airlines Holdings Inc
Q2 2025 Earnings
Market Reaction
Did SNCY Beat Earnings? Q2 2025 Results
Sun Country Airlines posted a solid beat across the board in Q2 2025, with adjusted diluted EPS of $0.14 clearing the $0.11 consensus estimate by 22.70% and total revenue of $263.62 million topping forecasts by 3.04% as the hybrid carrier's strategic pivot toward cargo continued to pay off. Revenue climbed 3.6% year-over-year, fueled by a 36.8% surge in cargo revenue to $34.80 million and a 6.4% rise in charter revenue to $54.27 million, gains that more than compensated for a modest 0.8% dip in passenger revenue. GAAP net income swelled to $6.58 million from $1.81 million a year ago, extending the company's profitable streak to twelve consecutive quarters. The results arrived even as Sun Country deliberately trimmed scheduled service ASMs by 6.2% to make room for cargo fleet expansion, a trade-off that pushed unit costs higher and left management warning that elevated CASM levels will persist until scheduled passenger growth resumes in the second half of 2026. For Q3 2025, the company guided total revenue of $250 million to $260 million, implying 0-4% year-over-year growth, with an operating income margin of 3-6%.
- Cargo revenue grew 36.8% year-over-year driven by increased cargo aircraft in service and new Amazon contract rates effective June 2024
- Scheduled service TRASM increased 3.7% year-over-year to 10.40 cents despite 6.2% decline in scheduled service ASMs
- Total fare per scheduled passenger increased 6.5% to $150.99
- Aircraft fuel costs declined 18.7% year-over-year due to lower fuel prices
- Charter revenue increased 6.4% on 7.9% block hour growth
- Interest expense decreased 16.8% year-over-year
“Sun Country is pleased to report our twelfth consecutive profitable quarter with GAAP EPS of $0.12 and adjusted diluted EPS of $0.14. We are steadily incorporating our eight additional cargo aircraft throughout the second and third quarters. As of the end of the second quarter, we had 15 cargo aircraft in service and expect all 20 freighters to be in-service by the end of the third quarter. As of today, all eight of the additional cargo aircraft have been delivered to us and five are in-service, bringing our in-service cargo aircraft to 17. To successfully accommodate this growth in cargo, we reduced our passenger service business as demonstrated by the 3.9% decline in total ASMs, with a notable reduction of our scheduled service business as demonstrated by the 6.2% decline in scheduled service ASMs. That being said, we have seen healthy demand with scheduled service TRASM increasing 3.7% and total fare increasing 6.5% versus the second quarter last year. This has contributed to a second quarter GAAP pre-tax margin of 3.2% and an adjusted pre-tax margin of 3.9%, which grew by 2.0 and 2.1 percentage points year-over-year respectively. This is another terrific result produced by our dedicated and hard-working employees who delivered in a challenging environment.”
Sun Country Airlines CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025, Sun Country guides total revenue of $250 million to $260 million (0-4% year-over-year growth), operating income margin of 3% to 6%, economic fuel cost per gallon of $2.61, effective tax rate of 23%, and total system block hours of 38,000 to 39,000 (5-8% year-over-year growth). Scheduled service ASMs are expected to decline approximately 10% year-over-year in Q3 to accommodate planned cargo segment growth. All 20 cargo freighters are expected to be in-service by end of Q3 2025. CASM and adjusted CASM are expected to remain elevated until scheduled service growth resumes in the second half of 2026. The company expects to end 2025 with 45 passenger aircraft and 20 cargo aircraft.
SNCY YoY Financials
SNCY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.