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Sun Country Airlines Reports First Quarter Net Income of $3.6 Million or $0.06 per Diluted Share

Sun Country Airlines has reported a first quarter net income of $3.6 million or $0.06 per diluted share on a 78 percent year-over-year increase in revenue to $227 million. The carrier ended the quarter with $297 million in liquidity.


Sun Country Boeing 737-800 - Courtesy Sun Country Airlines

On Thursday (May 5, 2022), Sun Country Airlines reported their first quarter financial results for the period ending March 31, 2022. The carrier reported a first quarter net income of $3.6 million or $0.06 per share on a year-over-year increase in revenue of 78 percent to $227 million. The company’s first quarter total revenue per available seat mile (TRASM) increased versus Q1 2021 by 38.4 percent 10.66 cents, while costs per available seat mile (CASM) increased 42.3 percent to 10.62 cents. First quarter costs excluding fuel and other special items (CASM-ex) increased 0.9 percent compared to Q1 2021 to 6.21 cents. At March 31, 2022, Sun Country Airlines had cash, cash equivalents and an undrawn revolving credit facility totaling $297 million, and total net debt of $309 million.


In Thursday’s announcement, Sun Country’s Chief Executive Officer, Jude Bricker, said,


“We are very happy to report another profitable quarter. I am proud of all the people at Sun Country who, once again, delivered quarterly profitable growth despite the challenging macro-economic and pandemic backdrop. Very strong bookings and unit revenue trends, combined with solid cost control, drove a first quarter net income, adjusted net income and adjusted net income per share of approximately $4 million, $12 million and $0.20 per share, respectively. These results came despite much higher-than-expected fuel prices and Omicron-driven headwinds earlier in the quarter. We anticipate passenger demand to remain strong with second quarter scheduled service TRASM expected to increase between 25% and 34% versus second quarter 2019. Sun Country’s uniquely resilient model has now generated our fourth consecutive quarter of profitability and our sixth consecutive quarter of greater than 15% EBITDAR margins.”


Also commenting on the carrier’s first quarter results, Sun Country’s President and Chief Financial Officer, Dave Davis, added,


“We were able to produce an adjusted operating margin of 10% on $227 million in total revenue during the quarter. This revenue is a record quarterly high for Sun Country. Our results were accomplished despite paying $3.20 per gallon for jet fuel during the quarter. In March, traditionally our strongest month, we paid $3.58 per gallon while generating an operating margin well in excess of 20%. Demand in the quarter materially picked up starting in February as demonstrated by our March scheduled service TRASM increasing 4% versus the same time period in 2019 on 8% capacity growth. Our charter and cargo operations, which were 33% of our block hours in the first quarter, include pass-through fuel economics, providing a natural cost-hedge against volatile fuel prices.”


Sun Country Airlines First Quarter 2022 Financial Results - Courtesy Sun Country Airlines

During the first quarter, Sun Country Airlines announced four new routes that will start later this year including service to Las Vegas from Green Bay and Madison (Wisconsin), as well as between Minneapolis (Minnesota) and Reno (Nevada) and between Harlingen (Texas) and Cancun (Mexico). In April 2022, the airline purchased five Boeing 737-800s, one of which was previously on lease. The company also completed a private EETC offering which raised $188 million secured by 13 737-800s at a weighted average interest rate of 5.06%.


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 its 37 years of service. Sun Country offers low fares and safe, reliable, nonstop service to amazing destinations across the U.S., Mexico, Central America 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 morning (May 6, 2022), shares in Sun Country Airlines Holdings, Inc. (NASDAQ: SNCY) were 3.92% lower at $26.46/share (11:53 AM EDT).



Source: Sun Country Airlines/Globe Newswire

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