Sun Country Airlines (SNCY) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and full-year revenues, with Q4 revenue up 6.1% year-over-year to $260.4M and full-year revenue at $1.08B, driven by charter and cargo segments.

• Diversified business model with flexible scheduled service, strong charter, and expanding cargo operations, supporting resilience amid industry fluctuations.

• Reached agreements in principle with flight attendant and dispatcher unions, pending ratification expected in Q1 2025.

• Took delivery of first aircraft under new Amazon cargo agreement, with full fleet expansion expected by summer 2025.

• Q4 GAAP diluted EPS was $0.24 (up 140% year-over-year); adjusted diluted EPS was $0.27 (up 125%).

Financial highlights

• Q4 total revenue: $260.4M, up 6.1% year-over-year; full-year revenue: $1.08B, highest on record.

• Q4 adjusted operating margin: 10.6% (record); full-year adjusted operating margin: 10.4%.

• Q4 net income was $13.4M (up 138% year-over-year); adjusted net income was $15.0M (up 117.1%).

• Cargo revenue in Q4 grew 13.1% to $28.6M, an all-time high, despite a 2.5% decrease in block hours.

• Charter revenue in Q4 grew 2.3% to $48M; ad hoc charter revenue up 27% year-over-year.

Outlook and guidance

• Q1 2025 total revenue expected between $330M and $340M, up 6–9% year-over-year, with block hour growth of 7%-9%.

• Anticipate operating margin of 17%-21% in Q1 2025, with effective tax rate of 23%.

• Scheduled service ASMs expected to decline 3%-5% in 2025, with reductions mainly in Q2-Q4.

• Cargo block hours and revenue projected to sharply increase as Amazon fleet expansion completes by late summer 2025.

• Full-year 2025 CapEx expected at $70M-$80M, mainly for spare engines.