Sun Country Airlines Reports 4.1% Revenue Growth to $326.6 Million in Q1 2025

Sun Country Airlines Holdings, Inc. reported its financial results for the first quarter of 2025, revealing total operating revenues of $326.6 million, a 4.1% increase from $311.5 million in the same period of 2024. The growth was primarily driven by a rise in passenger revenue, which reached $285.9 million, up from $274.7 million year-over-year. The company also saw an increase in cargo revenue, which rose to $28.2 million from $23.9 million. Net income for the quarter was $36.5 million, compared to $35.3 million in the prior year, resulting in basic earnings per share of $0.68, slightly up from $0.67.

In terms of operational performance, Sun Country's total operating expenses increased to $270.4 million from $256.3 million, largely due to higher salaries, wages, and benefits, which rose to $92.8 million from $82.2 million. The company also incurred special items totaling $1.8 million related to a one-time ratification bonus for flight attendants following a new collective bargaining agreement. Despite the increase in expenses, operating income remained stable at $56.2 million, compared to $55.2 million in the previous year.

Strategically, Sun Country has made significant moves to enhance its cargo operations. The company entered into an amended agreement with Amazon, increasing the number of cargo aircraft operated on behalf of Amazon from 12 to 20 by 2025. During the first quarter, Sun Country received three additional cargo aircraft, with one already in service. This expansion is expected to bolster the company's cargo revenue stream and improve operational efficiency.

Geographically, the airline's operations remain heavily concentrated in the U.S., with domestic revenues accounting for $301.4 million of total revenues. The company also reported growth in its Latin American operations, with revenues increasing to $25.2 million from $21.3 million. As of March 31, 2025, Sun Country's fleet consisted of 66 aircraft, including 61 Boeing 737-800s and five Boeing 737-900ERs, reflecting a commitment to maintaining a modern and efficient fleet.

Looking ahead, Sun Country Airlines anticipates continued growth in both passenger and cargo segments, supported by its strategic partnerships and fleet expansion. The company has also authorized a new $25 million share repurchase program, indicating confidence in its financial position and commitment to returning value to shareholders. The airline's management remains optimistic about navigating market conditions and achieving its operational goals for the remainder of 2025.