Sun Country Airlines (SNCY) Q1 2026 earnings summary

Executive summary

• Operating revenues rose 4% year-over-year to $338.4 million, driven by a 64% increase in cargo revenue, offsetting flat passenger revenue and a 44% decline in other revenue.

• Net income declined 34% year-over-year to $24.1 million, impacted by $9.8 million in special merger-related charges and higher operating costs.

• A merger agreement with Allegiant was announced, with closing expected as early as May 13, 2026, pending shareholder approval.

Financial highlights

• Passenger revenue was flat at $285.3 million, with a 12% decrease in passengers offset by a 12% increase in total fare per passenger.

• Cargo revenue surged to $46.1 million, up from $28.2 million, due to additional aircraft and contractual rate increases.

• Operating expenses increased 11% to $301.5 million, mainly from higher fuel costs (up 13%) and salaries (up 12%).

• Adjusted EBITDA was $73.5 million, down from $84.5 million year-over-year.

• Adjusted net income was $32.9 million, compared to $39.7 million in the prior year.

Outlook and guidance

• Management expects continued elevated fuel costs due to geopolitical events and supply disruptions.

• Cargo segment growth is expected to continue with two additional Amazon aircraft entering service by Q3 2026.

• Liquidity remains strong, with $288.3 million in total liquidity and $75 million available under a revolving credit facility.