Sun Country Airlines (SNCY) investor relations material

Executive summary

• Achieved thirteenth consecutive profitable quarter, with Q3 revenue reaching $255.5–$256 million, driven by record cargo and charter growth and a diversified business model.

• Completed cargo fleet expansion to 20 aircraft, all operating under Amazon contract, resulting in a 51% year-over-year cargo revenue increase.

• Scheduled service capacity was reduced to facilitate cargo growth, with plans to recover and expand passenger service by 2026.

• Charter segment set record volumes and revenue per block hour, leveraging flexible capacity allocation and increased ad hoc flying.

• Returned $10 million to shareholders via stock repurchases in Q3, with $15 million in remaining authorization.

Financial highlights

• Q3 total revenue was $255.5 million, up 2–2.4% year-over-year, with net income of $1.6 million and adjusted EPS of $0.07.

• Operating income for Q3 was $9.9 million (3.9% margin); adjusted operating income was $12.4 million (4.8% margin).

• Cargo revenue grew 50.9% to $44 million, the highest in company history; charter revenue increased 15.6% to $58.7 million.

• Salaries rose 15% on higher headcount and contractual rate increases; maintenance costs increased 13.5% due to unplanned events.

• Total liquidity at quarter-end was $298.7–$299 million; net debt was $301.3–$406.1 million.

Outlook and guidance

• Q4 revenue expected between $270–$280 million, with block hours up 8–11% and operating margin guidance of 5–8%.

• Scheduled service ASMs expected to decline 8–9% in Q4 year-over-year as cargo segment growth annualizes.

• TRASM for Q4 projected to be up over 6% year-over-year; 1Q 2026 advances are even stronger.

• Targeting $300 million run-rate EBITDA after Q2 2027 with current fleet.

• Management expects continued volatility in fuel prices and macroeconomic conditions to impact results.