Sun Country Airlines Holdings, Inc. (SNCY) Bundle
A Brief History of Sun Country Airlines Holdings, Inc.
Sun Country Airlines Holdings, Inc. (SNCY) was founded in 1982 and has evolved from a charter airline into a publicly traded company listed on NASDAQ. As of 2024, the airline continues to operate a fleet of Boeing 737-NG aircraft, providing scheduled passenger and charter services primarily from its hub in Minneapolis-St. Paul.
Financial Performance Overview
For the nine months ended September 30, 2024, Sun Country Airlines reported total operating revenues of $815.3 million, a slight increase of 1% compared to $804.1 million for the same period in 2023. Key revenue components included:
| Revenue Source | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Scheduled Service | $313.1 | $360.6 | (13%) |
| Charter | $149.1 | $143.3 | 4% |
| Ancillary | $236.7 | $205.6 | 15% |
| Passenger | $698.8 | $709.5 | (2%) |
| Cargo | $78.6 | $74.4 | 6% |
| Other | $38.0 | $20.2 | 88% |
The decrease in scheduled service revenue was primarily driven by a 13% decrease in total fare per passenger, influenced by increased industry capacity.
Operational Metrics
Sun Country Airlines has experienced growth in operational metrics, with passenger numbers rising from 3.09 million in 2023 to 3.44 million in 2024, marking an increase of 11%. The airline also reported a load factor of 85.0%, down from 86.9% in the previous year.
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Passengers Carried | 3,437,005 | 3,093,536 | 11% |
| Average Base Fare per Passenger | $91.08 | $116.57 | (22%) |
| Ancillary Revenue per Passenger | $68.86 | $66.47 | 4% |
| Total Fare per Passenger | $159.95 | $183.04 | (13%) |
| Load Factor | 85.0% | 86.9% | (1.9%) |
Cost Structure and Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $735.4 million, an increase of 6% from $693.7 million in 2023. Key expenses included:
| Expense Type | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Aircraft Fuel | $187.2 | $185.8 | 1% |
| Salaries, Wages, and Benefits | $242.5 | $223.9 | 8% |
| Maintenance | $50.1 | $44.3 | 13% |
| Depreciation and Amortization | $71.2 | $64.6 | 10% |
| Landing Fees and Airport Rent | $44.4 | $36.8 | 21% |
The increase in operating expenses was largely driven by rising salaries and maintenance costs as the airline expanded its operations.
Liquidity and Capital Resources
As of September 30, 2024, Sun Country Airlines reported cash and cash equivalents of $56.8 million and short-term investments of $89.7 million. The company also had a revolving credit facility with $24.7 million available.
Long-term debt as of the same date was $275.9 million, with a debt-to-capital ratio of 0.55.
A Who Owns Sun Country Airlines Holdings, Inc. (SNCY)
Ownership Structure
As of 2024, Sun Country Airlines Holdings, Inc. (SNCY) has a diverse ownership structure consisting of institutional investors, individual shareholders, and company management.
| Owner Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 60.3% | 35,000,000 |
| Individual Shareholders | 30.5% | 17,500,000 |
| Management and Insiders | 9.2% | 5,000,000 |
Major Shareholders
The following table lists the major shareholders of Sun Country Airlines Holdings, Inc. as of 2024:
| Shareholder | Type | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| BlackRock, Inc. | Institutional Investor | 8,500,000 | 14.3% |
| The Vanguard Group, Inc. | Institutional Investor | 7,200,000 | 12.2% |
| State Street Corporation | Institutional Investor | 6,000,000 | 10.2% |
| Company Executives | Management | 5,000,000 | 8.5% |
| Other Individual Shareholders | Individual | 3,800,000 | 6.4% |
Stock Performance
As of September 30, 2024, the stock price of Sun Country Airlines Holdings, Inc. was $17.00 per share, reflecting a market capitalization of approximately $1.01 billion.
Recent Financial Highlights
For the nine months ended September 30, 2024, Sun Country Airlines reported:
- Total Operating Revenues: $815,334,000
- Net Income: $39,467,000
- Adjusted EBITDA: $155,746,000
- Operating Margin: 9.8%
Debt and Liquidity
As of September 30, 2024, Sun Country Airlines had total debt of $354,864,000, with a debt-to-capital ratio of 0.55. The company reported cash and cash equivalents of $56,791,000.
Future Outlook
Sun Country Airlines is positioned for growth with an expanding fleet of 63 Boeing 737-NG aircraft, including 44 passenger aircraft and 12 cargo aircraft. The company aims to enhance operational efficiency and profitability in the coming years.
Sun Country Airlines Holdings, Inc. (SNCY) Mission Statement
Company Overview
Sun Country Airlines Holdings, Inc. operates as a low-cost airline company, providing scheduled and charter air transportation services. The company aims to deliver affordable travel options while ensuring high standards of safety and customer service.
Mission Statement
As of 2024, Sun Country Airlines is committed to connecting people and places through reliable, low-cost air travel. Their mission emphasizes a focus on customer satisfaction, operational efficiency, and sustainable practices.
Financial Performance
For the nine months ended September 30, 2024, Sun Country Airlines reported the following financial data:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Total Operating Revenues | $815,334 | $804,077 | 1% |
| Passenger Revenue | $698,823 | $709,490 | (2%) |
| Cargo Revenue | $78,560 | $74,437 | 6% |
| Operating Expenses | $735,411 | $693,702 | 6% |
| Net Income | $39,467 | $66,536 | (41%) |
Operational Statistics
Sun Country Airlines' operational metrics for the same period include:
| Operational Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Passengers Carried | 3,437,005 | 3,093,536 | 11% |
| Average Base Fare per Passenger | $91.08 | $116.57 | (22%) |
| Ancillary Revenue per Passenger | $68.86 | $66.47 | 4% |
| Total Fare per Passenger | $159.95 | $183.04 | (13%) |
| Passenger Load Factor | 85.0% | 86.9% | (1.9%) |
Market Position and Strategy
Sun Country Airlines positions itself in the market as a low-cost carrier. The airline employs a strategy focused on expanding its route network while maintaining competitive pricing to attract a diverse customer base. The company also emphasizes ancillary revenue streams to enhance profitability.
Future Outlook
Looking ahead, Sun Country Airlines aims to continue its growth trajectory by enhancing operational efficiency and expanding its service offerings. The focus on customer experience and sustainability will remain central to its mission as it navigates the challenges of the competitive airline industry.
How Sun Country Airlines Holdings, Inc. (SNCY) Works
Overview of Operations
Sun Country Airlines operates as a low-cost airline in the United States, providing scheduled passenger and cargo services. The airline has expanded its operations significantly as of 2024, focusing on scheduled services, charter flights, and cargo operations.
Financial Performance
For the three months ended September 30, 2024, Sun Country Airlines reported total operating revenues of $249,470 thousand, compared to $248,876 thousand for the same period in 2023. The breakdown of revenues is as follows:
| Revenue Source | Q3 2024 (in $000) | Q3 2023 (in $000) | Change (%) |
|---|---|---|---|
| Scheduled Service | 83,784 | 96,483 | (13%) |
| Charter | 50,769 | 47,437 | 7% |
| Ancillary | 73,211 | 70,435 | 4% |
| Passenger | 207,764 | 214,355 | (3%) |
| Cargo | 29,165 | 26,059 | 12% |
| Other | 12,541 | 8,462 | 48% |
Operating Expenses
Operating expenses for Q3 2024 totaled $237,088 thousand, reflecting an increase from $229,870 thousand in Q3 2023. Key expenses include:
| Expense Type | Q3 2024 (in $000) | Q3 2023 (in $000) | Change (%) |
|---|---|---|---|
| Aircraft Fuel | 54,737 | 61,179 | (11%) |
| Salaries, Wages, and Benefits | 80,919 | 72,541 | 12% |
| Maintenance | 15,973 | 15,330 | 4% |
| Sales and Marketing | 7,748 | 7,569 | 2% |
| Depreciation and Amortization | 23,754 | 22,762 | 4% |
| Ground Handling | 11,568 | 9,382 | 23% |
| Landing Fees and Airport Rent | 15,979 | 13,958 | 14% |
Profitability Metrics
Net income for Q3 2024 decreased to $2,342 thousand from $7,591 thousand in Q3 2023, reflecting a decline of (69%). The operating income for the quarter was $12,382 thousand, down from $19,006 thousand, indicating a (35%) decline.
Passenger Statistics
Sun Country Airlines reported the following passenger statistics for Q3 2024:
| Statistic | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Departures | 7,259 | 6,878 | 6% |
| Block Hours | 21,416 | 19,935 | 7% |
| Passengers Carried | 1,112,455 | 1,090,172 | 2% |
| Average Base Fare per Passenger | $75.31 | $88.50 | (15%) |
| Total Fare per Passenger | $141.13 | $153.11 | (8%) |
| Passenger Load Factor | 84.2% | 86.6% | (2.4%) |
Fuel and Cost Metrics
Fuel consumption and costs for Q3 2024 are as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Fuel Gallons Consumed (thousands) | 54,634 | 65,884 |
| Fuel Cost per Gallon | $2.86 | $3.12 |
| Cost per Available Seat Mile (CASM) (cents) | 12.04 | 12.57 |
| Adjusted CASM (cents) | 7.51 | 7.56 |
Debt and Liquidity
As of September 30, 2024, Sun Country Airlines reported total debt of $351,779 thousand, down from $401,645 thousand at the end of 2023. The company had cash and cash equivalents of $56,791 thousand.
Workforce
At the end of Q3 2024, Sun Country Airlines employed 2,965 individuals, an increase from 2,692 employees at the end of Q3 2023.
How Sun Country Airlines Holdings, Inc. (SNCY) Makes Money
Revenue Streams
Sun Country Airlines generates revenue from several key segments:
- Scheduled Service
- Charter Services
- Cargo Services
- Ancillary Revenue
- Other Revenue
Scheduled Service Revenue
For the nine months ended September 30, 2024, Scheduled Service revenue was $313,056, a decrease of 13% from the prior year. Passenger revenue from Scheduled Services decreased by 2% to $698,823, influenced by a 13% drop in average fare per passenger to $159.95 from $183.04.
Charter Services Revenue
Charter revenue increased by 4% to $149,090 during the same period. The Charter revenue per block hour rose to $9,709, up from $8,956, reflecting an 8% increase, driven by rate increases and operational efficiencies.
Cargo Services Revenue
Cargo revenue amounted to $78,560, a 6% increase year-over-year. This growth was primarily due to rate escalations resulting from the A&R ATSA, despite a 2% decrease in block hours.
Ancillary Revenue
Ancillary revenue saw a significant increase of 15%, reaching $236,677. This growth was supported by higher ancillary revenue per passenger, which rose to $68.86, compared to $66.47 in the previous year.
Other Revenue
Other revenue jumped by 88% to $37,951, largely due to $29,240 in rental revenue associated with seven leased aircraft, compared to $11,742 from five leased aircraft in the prior year.
| Revenue Source | 2024 ($000) | 2023 ($000) | % Change |
|---|---|---|---|
| Scheduled Service | 313,056 | 360,607 | -13% |
| Charter | 149,090 | 143,250 | +4% |
| Cargo | 78,560 | 74,437 | +6% |
| Ancillary | 236,677 | 205,633 | +15% |
| Other | 37,951 | 20,150 | +88% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $735,411, reflecting a 6% increase from $693,702 in 2023. Key expenses included:
- Aircraft Fuel: $187,229 (up 1%)
- Salaries, Wages, and Benefits: $242,516 (up 8%)
- Maintenance: $50,129 (up 13%)
- Sales and Marketing: $26,819 (up 3%)
- Depreciation and Amortization: $71,194 (up 10%)
- Ground Handling: $32,090 (up 13%)
- Landing Fees and Airport Rent: $44,431 (up 21%)
| Expense Category | 2024 ($000) | 2023 ($000) | % Change |
|---|---|---|---|
| Aircraft Fuel | 187,229 | 185,829 | +1% |
| Salaries, Wages, and Benefits | 242,516 | 223,890 | +8% |
| Maintenance | 50,129 | 44,311 | +13% |
| Sales and Marketing | 26,819 | 26,005 | +3% |
| Depreciation and Amortization | 71,194 | 64,577 | +10% |
| Ground Handling | 32,090 | 28,299 | +13% |
| Landing Fees and Airport Rent | 44,431 | 36,847 | +21% |
Net Income
Net income for the nine months ended September 30, 2024, was $39,467, a significant decrease of 41% from $66,536 in 2023. The operating income dropped to $79,923, down 28% from $110,375 in the previous year.
Liquidity and Capital Resources
As of September 30, 2024, Sun Country Airlines reported cash and cash equivalents of $56,791 and short-term investments of $89,697. The company also had $24,743 available from its Revolving Credit Facility.
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Article updated on 8 Nov 2024
Resources:
- Sun Country Airlines Holdings, Inc. (SNCY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sun Country Airlines Holdings, Inc. (SNCY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sun Country Airlines Holdings, Inc. (SNCY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.