Sun Country Airlines Reports Fourth Quarter and Full Year 2024 Results

Core Insights - Sun Country Airlines reported record financial results for Q4 2024, with total revenue of $260.4 million, a 6.1$0.24 and an adjusted diluted EPS of $0.27 for Q4 2024, reflecting significant year-over-year growth [1][3][5] - For FY 2024, total revenue reached$1.08 billion, marking the highest full year on record, despite a decline in operating income and net income compared to FY 2023 [1][3][4] Financial Performance - Q4 2024 operating income was $26.1 million, with an operating income margin of 10.0$27.5 million, resulting in an adjusted operating income margin of 10.6% [1][3][4] - FY 2024 GAAP diluted EPS was $0.96, down 22.0$1.05, a decrease of 23.4% [1][3][4] - The company reported a net income of $13.4 million for Q4 2024, a 138.0$52.9 million, down 26.7% from FY 2023 [3][4][29] Capacity and Operations - System block hours flown in Q4 2024 increased by 2.7% year-over-year, with a 3.5% rise in scheduled service ASMs [7][31] - The company anticipates total block hour growth of 7% to 9% for Q1 2025, with scheduled service ASMs expected to grow slightly more than 7% compared to Q1 2024 [7][15] - Cargo block hours declined by 2.5% in Q4 2024, but significant growth is expected in the cargo segment starting in Q2 2025 [7][10] Revenue Streams - Passenger market conditions improved in Q4 2024, with scheduled service TRASM declining by 1.0% on a 3.5% increase in scheduled service ASMs [8][31] - Cargo revenue reached $28.6 million in Q4 2024, a 13.1$48.0 million, reflecting a 2.3% year-over-year increase [9][11] Cost Management - Q4 2024 CASM fell by 0.7%, while adjusted CASM increased by 7.6% year-over-year due to lower ASM growth [11][32] - Total GAAP operating expenses rose by 2.6% year-over-year, influenced by a 14.5% increase in maintenance costs and an 18.4% rise in landing fees and airport rent [11][32] - The company successfully controlled costs, with full year 2024 adjusted CASM increasing only 1.3% over 2023 [5][11] Balance Sheet and Liquidity - As of December 31, 2024, total liquidity was $205.6 million, with net debt at$438.2 million [12][13] - Cash and cash equivalents increased to $83.2 million from$46.3 million year-over-year [12][35] - Total assets grew slightly to $1.63 billion, while total liabilities decreased to$1.06 billion [35][36] Future Outlook - The company expects Q1 2025 total revenue to be between $330 million and$340 million, representing a 6% to 9% increase compared to Q1 2024 [15][16] - Economic fuel cost per gallon is projected to be $2.76, an 8% decrease from the previous year [15] - The operating income margin for Q1 2025 is anticipated to be between 17% and 21% [15]