Sun Country Airlines (SNCY) Q2 2024 earnings summary

Executive summary

• Achieved eighth consecutive quarter of profitability, with Q2 2024 GAAP EPS of $0.03 and adjusted EPS of $0.06, despite a seasonally slower quarter and domestic overcapacity.

• Q2 2024 revenue was $254.4 million, down 2.6–3% year-over-year, with net income of $1.8 million, a 91% decline from the prior year.

• Diversified business model with strong charter and cargo segments provides flexibility and resilience.

• Employees managed significant operational challenges, including IT outages and aircraft downtime, while growing scheduled service departures over 15% year-over-year in June and July.

• Signed amended Amazon agreement extending through 2030, expanding operated cargo aircraft from 12 to 20, with revised economics and all new aircraft expected operational by Q3 2025.

Financial highlights

• Q2 2024 total revenue: $254.4 million (down 2.6–3% year-over-year); six-month revenue: $565.9 million (up 1.9–2%).

• Q2 2024 net income: $1.8 million (down 91% year-over-year); operating income: $12.4 million; adjusted EBITDA: $37.6 million.

• Adjusted CASM declined 4.9% year-over-year, third consecutive quarter of decline.

• Q2 2024 diluted EPS: $0.03 (down from $0.35); six-month diluted EPS: $0.67 (down from $0.99).

• Total liquidity at quarter-end: $153 million; net debt: $552 million.

Outlook and guidance

• Q3 2024 revenue expected between $245–$255 million on block hour growth of 5–8%; operating margin guidance is 3–5%.

• Scheduled service ASM growth to slow to 7–8% in Q3 and decline further in Q4.

• Cargo segment to become nearly 20% of total revenue by 2026, up from 10% in 2024.

• Expanded Amazon cargo agreement expected to drive future revenue growth starting in 2025.

• Mid-single-digit capacity growth planned for peak winter season.