Sun Country Airlines has reported a first quarter net profit of $38.3 million or $0.64 per diluted share on a year-over-year increase in revenue of 29.8 percent to $294.1 million. At March 31, 2023, the carrier had liquidity totaling $262 million.
On Thursday (April 27, 2023), Sun Country Airlines reported their first quarter financial results for the period ending March 31, 2023. The carrier reported a first quarter net profit of $38.3 million or $0.64 per diluted share on a year-over-year increase in revenue of 29.8 percent to 294.1 million. Sun Country’s first quarter total revenue per available seat mile (TRASM) increased by increased 30.6 percent compared to Q1 2022 to 13.92 cents, while cost per available seat mile (CASM) increased year-over-year by 15.3 percent to 12.25 cents. The airline’s adjusted first quarter costs (CASM-ex) increased 14.3 percent over the same period last year to 7.10 cents. At March 31, 2023, the company has cash, cash equivalents, marketable securities and available revolving credit liquidity totaling $262 million, and total net debt of $449 million.
In Thursday’s announcement, Sun Country Airlines’ Chief Executive Officer, Jude Bricker, said, “Sun Country’s unique, diversified business model continues to deliver strong results. The revenue environment remains resilient, as we saw a 20.8% increase in total average fare and a gain of 8.6 percentage points in load factor in the first quarter versus 2022. This demand strength helped deliver a first quarter GAAP operating income margin of 19.0% and an adjusted operating income margin of 19.9%, easily exceeding the first quarter of last year by over 9 percentage points. We delivered these outstanding results despite a winter season at our Minneapolis-St. Paul base that was the third snowiest on record. I want to thank our dedicated team of employees for their extraordinary efforts this winter.”
Also commenting on the Airline’s first quarter results, Sun Country’s President and Chief Financial Officer, Dave Davis, said,
“We continue to see strength across our scheduled service, charter and cargo businesses. Total revenue was up nearly 30% year-over-year, with Scheduled Service TRASM up 34.7% and TRASM, including charter revenue, up 30.6% versus the first quarter of 2022. GAAP operating income increased 155% while adjusted operating income was up 157% year-over-year, generating a GAAP operating margin of 19.0% and an adjusted operating income margin of nearly 20% in our seasonally strongest quarter. During the first quarter, our unit costs were negatively impacted by decreased aircraft utilization levels. In the second quarter, we expect total block hour growth of at least 11% versus last year, and pressure on non-fuel CASM should
currently on lease to Oman Air. We will obtain the lease revenue from Oman Air until the expiration of the leases and the aircraft are delivered to us beginning in late 2024 and continuing through 2025. The 737-900ER is a new fleet variant for Sun Country and we expect it to create new opportunities for our network.”
Sun Country Airlines (NASDAQ: SNCY) is a new breed of hybrid low-cost carrier founded in 1983 by a small group of pilots and flight attendants. The award winning Minneapolis-St. Paul based airline has distinguished itself as a leader in leisure travel over their 40 years of service. Sun Country offers low fares and safe, reliable, nonstop service across the U.S., Mexico, Central America, Canada and the Caribbean. Additionally, the carrier offers services through their Sun Country Charters and Sun Country Vacations divisions, and also operates cargo CMI services for Amazon.
In trading Friday afternoon (April 28, 2023), shares in Sun Country Airlines (NASDAQ: SNCY) were 6.18% higher at $19.75/share (1:12 PM EDT).
Source: Sun Country Airlines