Sun Country Airlines (SNCY) Q3 2024 earnings summary

Executive summary

• Achieved ninth consecutive profitable quarter with Q3 2024 revenue of $249.5 million, flat year-over-year, despite operational disruptions from hurricanes and IT outages.

• Net income for Q3 2024 was $2.3 million, down 69% year-over-year; adjusted net income was $3.5 million.

• Diversified business model with strong charter and cargo segments offsetting scheduled service weakness.

• Operating expenses increased 3% year-over-year, mainly from higher salaries, maintenance, and airport fees.

• Adjusted operating income margin was 5.6% for Q3 2024, down from 8.1% in Q3 2023.

Financial highlights

• Q3 2024 total revenue was $249.5 million; net income was $2.3 million; adjusted EBITDA was $37.6 million (15.1% margin).

• Q3 2024 operating income was $12.4 million (5.0% margin), adjusted operating income was $14 million (5.6% margin).

• Charter revenue grew 7% to $51 million; cargo revenue increased 12% to $29.2 million, both quarterly records.

• Q3 2024 CASM was 12.58¢; adjusted CASM was 8.04¢, up 3.7% year-over-year.

• Total operating revenues for nine months 2024 were $815.3 million, up 1.4% year-over-year.

Outlook and guidance

• Q4 2024 total revenue expected between $250–$260 million, with operating margin projected at 7–9%.

• Scheduled service TRASM expected to be flat year-over-year in Q4; total TRASM up low single digits.

• Additional cargo aircraft to be added in 2025, with first entering service in late March or early April.

• Margin expansion expected in Q4 and bullish outlook into 2025.

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