Sun ntry Airlines -Sun Country Airlines Reports First Quarter 2025 Results

Financial Performance - Sun Country Airlines reported total revenue of $327 million for Q1 2025, marking a 4.9% increase compared to Q1 2024 [3][7] - The company achieved GAAP diluted EPS of$ 0.66 and adjusted diluted EPS of $0.72, reflecting a year-over-year increase of 3.1% and 9.1% respectively [3][39] - GAAP operating income was$ 56 million with a margin of 17.2%, while adjusted operating income reached $60 million with a margin of 18.3% [3][4] Business Segments - Growth in charter and cargo businesses helped offset lower scheduled service revenue, demonstrating the effectiveness of the company's diversified business model [2][4] - Charter service revenue increased by 15.6% year-over-year to$ 55 million, while cargo revenue rose by 17.6% to $28 million [7][8] Cost and Expenses - Total GAAP operating expenses increased by 5.5% year-over-year, primarily due to a 5.8% rise in total block hours [9] - Significant non-fuel expenses included a 12.9% increase in salaries, driven by an increase in pilot headcount and wage scale adjustments [9] Capacity and Operations - System block hours flown grew by 5.8% year-over-year, with a 6.7% increase in scheduled service ASMs and a 10.7% increase in charter block hours [6] - Scheduled service TRASM decreased by 4.7% year-over-year, while the total fare per scheduled passenger increased by 1.0% [7][27] Liquidity and Financial Position - Total liquidity as of March 31, 2025, was$ 227 million, with net debt at $447 million [12][28] - The company completed a secondary public offering and entered into a four-year$ 75 million revolving credit facility [11][12] Future Outlook - For Q2 2025, the company expects total revenue between $250 million and$ 260 million, with an operating income margin projected between 4% and 7% [15]