Sun Country Airlines Reports 2% Revenue Growth to $1,075.7 Million for Fiscal Year 2024

Sun Country Airlines Holdings, Inc. reported a modest increase in total operating revenues for the fiscal year ending December 31, 2024, reaching $1,075.7 million, a 2% rise from $1,049.6 million in 2023. The growth was primarily driven by a 12% increase in ancillary revenue, which totaled $307.9 million, and a 7% increase in cargo revenue, amounting to $107.2 million, attributed to the amended Air Transportation Services Agreement (A&R ATSA) with Amazon. However, passenger revenue saw a slight decline of 1%, totaling $914.1 million, due to a 9% decrease in the average fare per passenger, reflecting increased industry capacity.

In terms of operational performance, Sun Country Airlines carried approximately 4.5 million scheduled service passengers in 2024, an 8% increase from 4.1 million in 2023. The airline's average total fare per passenger decreased to $159.93 from $176.30, while ancillary revenue per passenger rose to $68.68 from $66.69. The airline's load factor was reported at 84.2%, down from 86.3% in the previous year, indicating a slight decrease in seat occupancy. The company also expanded its fleet, operating 63 aircraft as of December 31, 2024, including 45 passenger aircraft and 12 cargo aircraft operated under the A&R ATSA with Amazon.

Sun Country Airlines has made strategic moves to enhance its operational capabilities, including the execution of the A&R ATSA with Amazon, which will increase the number of cargo aircraft operated from 12 to 20 by the end of 2025. This agreement is expected to bolster the company's cargo revenue and operational efficiency. Additionally, the airline has focused on optimizing its capacity through a flexible scheduling model that adjusts to peak demand periods, allowing for better resource allocation across its scheduled service, charter, and cargo operations.

Financially, the company reported a net income of $52.9 million for 2024, a decrease of 27% from $72.2 million in 2023. This decline was attributed to increased operating expenses, which rose by 5% to $969.8 million, driven by higher salaries, maintenance costs, and landing fees. The airline's total debt decreased to $330.1 million from $401.6 million in the previous year, reflecting a focus on improving its balance sheet. As of December 31, 2024, Sun Country had cash and cash equivalents of $83.2 million, alongside available funds from its revolving credit facility.

Looking ahead, Sun Country Airlines anticipates continued growth in both passenger and cargo segments, supported by its strategic initiatives and operational flexibility. The company aims to leverage its unique hybrid business model to navigate the competitive airline landscape while maintaining a focus on cost management and customer service. However, the airline remains cautious of potential economic fluctuations and market conditions that could impact travel demand and operational performance.