Sun Country Airlines Holdings Inc
Q3 2025 Earnings
Market Reaction
Did SNCY Beat Earnings? Q3 2025 Results
Sun Country Airlines posted a mixed but modestly encouraging third quarter, with adjusted diluted EPS of $0.07 beating the $0.06 consensus by 8.36%, even as revenue of $255.54 million came in just 0.09% shy of estimates while still growing 2.4% year over year. The quarter's defining story was the completion of Sun Country's cargo fleet buildout, with all 20 Amazon freighters deployed by September, driving cargo revenue 50.9% higher to $44.02 million and pushing cargo and charter combined to 40% of total revenue. That diversification cushioned the airline against scheduled service headwinds, where ASMs fell 10.2% as capacity was deliberately redirected toward freight. Profitability faced pressure from a 15% jump in labor costs tied to new pilot and flight attendant agreements, and GAAP net income fell 33.7% to $1.60 million. With its stock down more than 26% year to date, investors will closely watch management's Q4 outlook, which calls for total revenue of $270 million to $280 million and operating margins of 5% to 8%, with unit cost relief not expected until scheduled service expands again in 2026.
- Cargo fleet transformation completed with full deployment of 20 freighter aircraft for Amazon
- Cargo and charter combined generated 40% of total revenue, highest since late 2020
- Cargo revenue surged 50.9% YoY driven by increased freighter aircraft and new Amazon contract rates
- Charter revenue grew 15.6% YoY exceeding the 11.1% increase in charter block hours
- August average fares rose 5% YoY with load factors up nearly three percentage points
- September trends accelerated with nearly 8% fare growth and load factor improvements exceeding three points
- Aircraft fuel costs declined 11.2% YoY due to lower fuel prices
“Sun Country is pleased to report our thirteenth consecutive profitable quarter with GAAP EPS of $0.03 and adjusted diluted EPS of $0.07. The quarter marked a significant operational milestone as the company completed its cargo segment transformation. By September, we had deployed our full fleet of 20 freighter aircraft for Amazon, representing a 14% expansion in total operating aircraft compared to the beginning of the year. This achievement reflects the exceptional dedication and effort of our team. Beyond operational growth, we continued to return value to shareholders, completing $10 million in stock repurchases during the period while still retaining $15 million in share repurchase authority. These results underscore our ability to simultaneously grow operations, maintain profitability and reward shareholders.”
Sun Country Airlines CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, Sun Country guided total revenue of $270 million to $280 million (4% to 8% year-over-year growth), economic fuel cost per gallon of $2.50 (1% YoY increase), operating income margin of 5% to 8% (down 2.6 to 5.6 percentage points YoY), effective tax rate of 23%, and total system block hours of 39,500 to 40,500 thousand (8% to 11% YoY increase). Scheduled service ASMs are expected to decline 8-9% year-over-year in Q4 as the company annualizes cargo segment growth. Unit costs are expected to remain elevated throughout the remainder of 2025 due to the reduction in scheduled service flying, with pressure continuing until the company adds back scheduled service later in 2026.
SNCY YoY Financials
SNCY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.