Sun Country Airlines (SNCY) investor relations material

Executive summary

• Achieved twelfth consecutive profitable quarter with record Q2 revenue of $263.6M, driven by diversified operations and strong cargo and charter segments.

• Net income for Q2 2025 was $6.6M, up from $1.8M in Q2 2024; diluted EPS was $0.12, with adjusted EPS at $0.14.

• Cargo fleet expansion to 20 aircraft by Q3 2025, supporting a 37% increase in cargo revenue and expected to double cargo revenue once fully utilized.

• Strategic focus on cargo growth led to short-term scheduled service reductions, with recovery and margin expansion anticipated by 2026.

• New co-branded credit card program launching in H2 2025 to boost loyalty and ancillary revenue.

Financial highlights

• Q2 2025 total revenue was $263.6M, up 3.6–4% year-over-year, with cargo revenue up 36.8–37% to $34.8M.

• Net income for Q2 2025 was $6.6M; adjusted EBITDA was $42.8M, and operating income rose 31.5% to $16.3M.

• Adjusted CASM rose 11.3% to 8.34 cents; load factor was 81.8%, down 1.3 points year-over-year.

• Charter revenue grew 6.4% to $54.3M; total operating expenses increased 2.2% year-over-year.

• Total liquidity at Q2 end: $206.6M; debt-to-capital ratio improved to 0.48.

Outlook and guidance

• Q3 2025 revenue expected between $250M and $260M, with operating margin guidance of 3–6%.

• Scheduled service ASMs to contract 9–10% in Q3 as cargo block hours rise 40–50% year-over-year.

• Margins expected to expand as scheduled service utilization recovers post-cargo ramp, with full recovery targeted by March 2026.

• Long-term outlook targets $1.5B revenue, $300M EBITDA, and $2.50 EPS by 2027, assuming current demand and fuel prices.

• Sufficient liquidity and capital resources expected to fund operations and meet debt obligations for at least the next 12 months.