Sun Country Airlines Expands Cargo Fleet with 20 Amazon Jets by Peak Season.

Sun Country Airlines, a Minneapolis-based carrier, has grown its cargo fleet by three aircraft, driving up cargo revenue 37% YoY to $35 million. The airline plans to operate 20 Amazon cargo jets by peak shipping season, with five of eight Boeing 737-800 freighters transferred from Atlas Air already in service. Aircraft utilization increased 9.5% during Q2, but was lower than expected due to extra procedures needed to commission additional freighters. The airline expects to meet Amazon's schedule by September.

Minneapolis, July 2, 2025 — Sun Country Airlines Holdings, Inc. (SNCY), a prominent player in the airline industry, has reported significant growth in its cargo operations during the second quarter of 2025. The company has expanded its cargo fleet by three aircraft, driving up cargo revenue by 37% year-over-year (YoY) to $35 million [1]. This expansion is part of the airline's strategic pivot from passenger-centric operations to a cargo-focused business model.

Sun Country plans to operate 20 Amazon cargo jets by peak shipping season, with five of the eight Boeing 737-800 freighters transferred from Atlas Air already in service [2]. The airline's aircraft utilization increased by 9.5% during the second quarter, although it was lower than expected due to additional procedures needed to commission the new freighters [3]. Sun Country expects to meet Amazon's schedule by September.

Despite the challenges in commissioning the new aircraft, the airline has seen healthy demand for its cargo services. The company has reduced its passenger service business, with a notable reduction in scheduled service available seat miles (ASMs) of 6.2% [3]. However, scheduled service revenue per available seat mile (TRASM) increased by 3.7%, and total fare increased by 6.5% compared to the previous year [3].

Sun Country's strategic shift to cargo is a bold move in the face of industry turbulence. The company's cargo revenue growth defies broader industry trends, as the International Air Transport Association (IATA) forecasts a 4.7% decline in global cargo revenue for 2025 [1]. Sun Country's success in this segment is largely attributed to its exclusive Amazon contract and the surging demand for e-commerce services.

However, the airline's long-term success will depend on its ability to manage costs and navigate regulatory and environmental pressures. The rising cost of Sustainable Aviation Fuel (SAF) poses a long-term threat to margins, as it is 4.2 times more expensive than conventional jet fuel in 2025 [1]. Sun Country's cargo model, while less energy-intensive per unit of revenue than passenger operations, may still struggle to absorb SAF costs without rate hikes.

Investors should monitor Sun Country's ability to balance growth with cost discipline and adapt to a world where trade and travel remain deeply intertwined. While the airline's stock has underperformed broader airline indices in 2025, reflecting skepticism about cargo's long-term appeal, those who believe in the resilience of e-commerce and the airline's operational discipline may find value in its current valuation [1].

References:
[1] https://www.ainvest.com/news/sun-country-airlines-navigating-cargo-transition-shifting-airline-landscape-2508/
[2] https://www.tradingview.com/news/tradingview:91ff3002664b7:0-sun-country-airlines-holdings-inc-sec-10-q-report/
[3] https://www.globenewswire.com/news-release/2025/07/31/3125455/0/en/Sun-Country-Airlines-Reports-Second-Quarter-2025-Results.html