Sun Country Airlines Reports 4% Revenue Growth to $263.6 Million, Driven by Cargo Revenue Increase

Sun Country Airlines Holdings, Inc. reported a total operating revenue of $263.6 million for the three months ended June 30, 2025, marking a 4% increase from $254.4 million in the same period last year. The growth was primarily driven by a significant 37% rise in cargo revenue, which reached $34.8 million, attributed to the addition of new aircraft under the Amended and Restated Air Transportation Services Agreement (A&R ATSA) with Amazon. Passenger revenue, however, saw a slight decline of 1%, totaling $214.7 million, as the company shifted focus towards expanding its cargo operations.

In terms of profitability, Sun Country reported a net income of $6.6 million for the second quarter of 2025, a substantial increase of 263% compared to $1.8 million in the prior year. This growth in net income was supported by a 32% rise in operating income, which reached $16.3 million, up from $12.4 million in the previous year. The company attributed this improvement to lower fuel costs and effective cost management, despite a 13% increase in salaries, wages, and benefits due to a growing workforce and contractual pay increases.

Operationally, Sun Country's total passenger count decreased to approximately 1.06 million in the second quarter, down from 1.17 million a year earlier, reflecting a strategic decision to prioritize cargo services. The airline's average base fare per passenger increased by 10% to $82.97, while ancillary revenue per passenger also rose by 3% to $68.02. The company ended the quarter with a fleet of 69 aircraft, including 19 cargo planes, and reported an employee headcount of 3,293, up from 3,079 a year prior.

Looking ahead, Sun Country anticipates continued growth in its cargo segment, with all eight additional aircraft expected to be operational by the end of the third quarter of 2025. The company has also entered into a new co-branded credit card program, set to launch in the second half of 2025, which is expected to enhance customer engagement and loyalty. Despite the positive outlook, the company remains cautious about potential economic uncertainties and their impact on operational performance.