Sun Country Airlines Reports Record Q2 Revenue of $263.6 Million, Beating Estimates by 3.0%

Sun Country Airlines reported record Q2 revenue of $263.6 million, a 4% increase, and adjusted earnings per share of $0.14, exceeding Wall Street expectations. The airline's cargo operations saw robust growth, with revenue up 36.8%, while passenger flights experienced rising costs due to capacity shifts. The company's hybrid business model combines scheduled flights, charter services, and cargo operations, providing flexibility to adapt to changing market conditions.

Sun Country Airlines Holdings, Inc. (NASDAQ: SNCY) reported its second quarter (Q2) 2025 results, highlighting significant growth and adaptability in a challenging market environment. The airline's hybrid business model, which combines scheduled flights, charter services, and cargo operations, demonstrated resilience and flexibility.

Revenue and Earnings Highlights

Sun Country Airlines reported total operating revenue of $263.6 million for the second quarter, marking a 4% increase from the same period last year. This growth was driven by a 36.8% increase in cargo revenue to $35 million, which was primarily due to the increase in cargo aircraft in service and new Amazon contract rates [1].

The company's adjusted earnings per share (EPS) for the quarter reached $0.14, exceeding Wall Street expectations and representing a significant improvement over the adjusted EPS of $0.06 in the same period last year. This robust performance was supported by a 6.8% adjusted operating margin, compared to 6.2% in the previous year [1].

Cargo Segment Growth

The cargo segment played a pivotal role in Sun Country's Q2 performance. With a 36.8% increase in cargo revenue, the segment demonstrated strong demand and operational efficiency. The company delivered all eight additional cargo aircraft, with five currently in service and three more expected by the end of the third quarter. This expansion is part of the company's strategy to meet growing cargo demands, particularly from high-value contracts like those with Amazon [1].

Passenger Flights and Costs

While the cargo segment thrived, passenger flights experienced a 6.2% decline in scheduled service ASMs (Available Seat Miles) to support the growth of the cargo segment. This reduction led to a 3.9% decline in total ASMs, but scheduled service TRASM (Total Revenue per Available Seat Mile) increased by 3.7% to 10.40 cents per ASM. The total fare per scheduled passenger also increased by 6.5%, offsetting a 1.3 percentage point decline in load factor [1].

The company's cost structure saw an increase in CASM (Cost per Available Seat Mile) by 6.3%, with adjusted CASM growing by 11.3%. These cost increases were primarily due to the reduction in scheduled service flying to accommodate cargo operations. Landing fees and airport rent increased by 9.1%, while other operating expenses rose by 14.0% [1].

Fleet and Leasing

Sun Country's fleet expansion continued with the delivery of all eight additional cargo aircraft. As of the end of the second quarter, the company had 45 passenger aircraft and 19 cargo aircraft in service. Additionally, the company extended leases on two passenger aircraft and retired one 737-800 in the second quarter [1].

Guidance for the Third Quarter

Looking ahead, Sun Country expects total revenue in the third quarter to range between $250 million and $260 million, with an operating income margin of 3% to 6%. The company anticipates elevated costs in the third quarter due to the continued reduction in scheduled service flying to support cargo growth, with costs expected to normalize in the second half of 2026 [1].

Conclusion

Sun Country Airlines' Q2 2025 results underscore the company's ability to adapt and grow in a dynamic market. The robust performance of the cargo segment, combined with strategic adjustments in passenger operations, has positioned Sun Country for continued success. As the company continues to integrate its new cargo aircraft, investors can expect to see further growth and operational efficiency in the coming quarters.

References

[1] Sun Country Airlines Q2 2025 Earnings Release. (2025). Retrieved from https://ir.suncountry.com/news-releases/news-release-details/sun-country-airlines-reports-second-quarter-2025-results