Sun Country Airlines Reports Third Quarter 2024 Results
Sun Country Airlines reported its Q3 2024 financial results with record quarterly revenue of $249 million. The company achieved its ninth consecutive profitable quarter with GAAP EPS of $0.04 and adjusted EPS of $0.06. Operating income was $12 million with a 5.0% margin, while adjusted operating income reached $14 million with a 5.6% margin. Despite challenges from the Crowdstrike outage and hurricanes, robust growth in charter and cargo businesses helped offset lower scheduled service revenue. The company's cargo revenue per block hour grew 16.0% year-over-year, while charter revenue exceeded block hour growth.
Sun Country Airlines ha riportato i risultati finanziari del terzo trimestre 2024 con un fatturato trimestrale record di 249 milioni di dollari. L'azienda ha raggiunto il nono trimestre consecutivo in utile, con un utile per azione GAAP di 0,04 dollari e un utile per azione rettificato di 0,06 dollari. L'utile operativo è stato di 12 milioni di dollari, con un margine del 5,0%, mentre l'utile operativo rettificato ha raggiunto i 14 milioni di dollari, con un margine del 5,6%. Nonostante le sfide derivanti dall'interruzione di Crowdstrike e dagli uragani, una solida crescita nei settori charter e cargo ha aiutato a compensare la diminuzione dei ricavi da servizi programmati. I ricavi da cargo per ora bloccata dell’azienda sono cresciuti del 16,0% su base annua, mentre i ricavi charter hanno superato la crescita delle ore bloccate.
Sun Country Airlines informó sus resultados financieros del tercer trimestre de 2024 con unos ingresos trimestrales récord de 249 millones de dólares. La compañía logró su noveno trimestre consecutivo de ganancias, con una utilidad por acción GAAP de 0,04 dólares y una utilidad por acción ajustada de 0,06 dólares. El ingreso operativo fue de 12 millones de dólares, con un margen del 5,0%, mientras que el ingreso operativo ajustado alcanzó los 14 millones de dólares, con un margen del 5,6%. A pesar de los desafíos derivados de la interrupción de Crowdstrike y los huracanes, un crecimiento robusto en los negocios de charter y carga ayudó a compensar la disminución en los ingresos por servicios programados. Los ingresos de carga por hora bloqueada de la compañía crecieron un 16,0% interanual, mientras que los ingresos de charter superaron el crecimiento de las horas bloqueadas.
선 컨트리 항공사는 2024년 3분기 재무 결과를 보고하며 기록적인 분기 매출 2억 4,900만 달러를 기록했습니다. 이 회사는 GAAP EPS 0.04달러, 조정 EPS 0.06달러로 아홉 번째 연속 흑자를 달성했습니다. 운영 소득은 1,200만 달러로 5.0%의 마진을 기록했으며, 조정 운영 소득은 1,400만 달러로 5.6%의 마진에 도달했습니다. Crowdstrike 중단 및 허리케인으로 인한 어려움에도 불구하고, 전세 및 화물 사업의 견고한 성장이 정기 서비스 수익 감소를 상쇄하는 데 도움을 주었습니다. 회사의 화물 수익은 블록 시간당 16.0% 증가했으며, 전세 수익은 블록 시간 성장률을 초과했습니다.
Sun Country Airlines a publié ses résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires trimestriel record de 249 millions de dollars. L'entreprise a réalisé son neuvième trimestre consécutif bénéficiaire avec un bénéfice par action GAAP de 0,04 dollar et un bénéfice par action ajusté de 0,06 dollar. Le résultat d'exploitation s'est élevé à 12 millions de dollars, avec une marge de 5,0 %, tandis que le résultat d'exploitation ajusté a atteint 14 millions de dollars avec une marge de 5,6 %. Malgré les défis liés à l'interruption de Crowdstrike et aux ouragans, une forte croissance dans les activités de charter et de fret a aidé à compenser la baisse des revenus des services programmés. Les revenus de fret par heure bloquée de l'entreprise ont augmenté de 16,0 % d'une année sur l'autre, tandis que les revenus de charter ont dépassé la croissance des heures bloquées.
Sun Country Airlines hat ihre finanziellen Ergebnisse für das dritte Quartal 2024 mit einem Rekordumsatz von 249 Millionen Dollar veröffentlicht. Das Unternehmen erzielte das neunte aufeinanderfolgende profitable Quartal mit einem GAAP-EPS von 0,04 Dollar und einem angepassten EPS von 0,06 Dollar. Das Betriebsergebnis betrug 12 Millionen Dollar bei einer Marge von 5,0 %, während das angepasste Betriebsergebnis 14 Millionen Dollar mit einer Marge von 5,6 % erreichte. Trotz der Herausforderungen durch den Crowdstrike-Ausfall und die Hurrikane half das robuste Wachstum im Charter- und Frachtgeschäft, den Rückgang der Einnahmen aus dem planmäßigen Service auszugleichen. Die Frachtumsätze pro Blockstunde des Unternehmens stiegen im Jahresvergleich um 16,0 %, während die Chartereinnahmen das Wachstum der Blockstunden übertrafen.
- Record Q3 revenue of $249 million
- Ninth consecutive profitable quarter
- Cargo revenue per block hour grew 16.0% YoY
- Charter revenue increased 7.0% YoY
- System block hours grew 3.8% YoY
- Net income declined 69.1% YoY to $2.3 million
- Operating income decreased 34.9% YoY to $12.4 million
- Scheduled service TRASM decreased 11.1% YoY
- Total fare per scheduled passenger declined 7.8% YoY
- Net debt increased to $531.5 million from $517.2 million in December 2023
Insights
Sun Country's Q3 results reveal a mixed performance with some concerning trends. While achieving
The airline industry's competitive dynamics are clearly visible in SNCY's results. The domestic market's overcapacity issue is pressuring yields, though Sun Country's unique business model provides some insulation through cargo and charter operations. The improving fare environment noted since September suggests potential market rationalization heading into Q4. Forward guidance projects revenue growth of
Revenue of
GAAP diluted EPS of
Adj. diluted EPS(2) of
MINNEAPOLIS, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Sun Country Airlines Holdings, Inc. (“Sun Country Airlines,” “Sun Country,” the “Company”) (NASDAQ: SNCY) today reported financial results for its third quarter ended September 30, 2024.
“Sun Country is pleased to report our ninth consecutive profitable quarter with GAAP EPS of
Overview of Third Quarter | ||||||
Three Months Ended September 30, | ||||||
(unaudited) (in millions, except per share amounts) | 2024 | 2023 | % Change | |||
Total Operating Revenue | $ | 249.5 | $ | 248.9 | 0.2 | |
Operating Income | 12.4 | 19.0 | (34.9 | ) | ||
Income Before Income Tax | 3.0 | 10.1 | (70.2 | ) | ||
Net Income | 2.3 | 7.6 | (69.1 | ) | ||
Diluted earnings per share | $ | 0.04 | $ | 0.13 | (69.2 | ) |
Three Months Ended September 30, | ||||||
(unaudited) (in millions, except per share amounts) | 2024 | 2023 | % Change | |||
Adjusted Operating Income (2) | $ | 13.9 | $ | 20.0 | (30.8 | ) |
Adjusted Income Before Income Tax (2) | 4.5 | 11.1 | (59.5 | ) | ||
Adjusted Net Income (2) | 3.5 | 8.4 | (58.4 | ) | ||
Adjusted diluted earnings per share (2) | $ | 0.06 | $ | 0.14 | (57.1 | ) |
Nine Months Ended September 30, | ||||||
(unaudited) (in millions, except per share amounts) | 2024 | 2023 | % Change | |||
Total Operating Revenue | $ | 815.3 | $ | 804.1 | 1.4 | |
Operating Income | 79.9 | 110.4 | (27.6 | ) | ||
Income Before Income Tax | 52.6 | 86.5 | (39.1 | ) | ||
Net Income | 39.5 | 66.5 | (40.7 | ) | ||
Diluted earnings per share | $ | 0.72 | $ | 1.12 | (35.7 | ) |
Nine Months Ended September 30, | ||||||
(unaudited) (in millions, except per share amounts) | 2024 | 2023 | % Change | |||
Adjusted Operating Income (2) | $ | 84.5 | $ | 118.5 | (28.7 | ) |
Adjusted Income Before Income Tax (2) | 57.2 | 94.9 | (39.7 | ) | ||
Adjusted Net Income (2) | 43.0 | 72.9 | (41.1 | ) | ||
Adjusted diluted earnings per share (2) | $ | 0.78 | $ | 1.23 | (36.6 | ) |
Amounts presented in the tables above may not recalculate due to rounding | ||||||
For the quarter ended September 30, 2024, Sun Country reported net income of approximately
“Our third quarter results reflect the continued earnings power of our diversified business model,” said Dave Davis, President and Chief Financial Officer. “Cargo revenue per block hour grew by
Notable Highlights
- Ninth consecutive profitable quarter and highest third quarter total revenue on record(1).
- Further extended the existing lease on one 737-800 aircraft Sun Country has on lease to an unaffiliated airline. This aircraft is now expected to redeliver to Sun Country in November 2025.
- Supported Major League Soccer by flying all 18 Liga MX teams home for 2024 Leagues Cup.
Capacity
System block hours flown during the third quarter of 2024 grew by
Revenue
The domestic market continued to be impacted by overcapacity in the third quarter which pressured unit revenue. The Company reported total revenue of
In the third quarter of 2024, cargo revenue was
Cost
Third quarter CASM fell
Balance Sheet and Liquidity
Total liquidity(5) was
(in millions - amounts may not recalculate due to rounding) | September 30, 2024 | December 31, 2023 | |||
(Unaudited) | |||||
Cash and Cash Equivalents | $ | 56.8 | $ | 46.3 | |
Available-for-Sale Securities | 83.3 | 134.2 | |||
Amount Available Under Revolving Credit Facility | 24.7 | 24.7 | |||
Total Liquidity | $ | 164.8 | $ | 205.2 | |
(in millions - amounts may not recalculate due to rounding) | September 30, 2024 | December 31, 2023 | |||
(Unaudited) | |||||
Total Debt, net | $ | 351.8 | $ | 401.6 | |
Finance Lease Obligations | 298.5 | 277.3 | |||
Operating Lease Obligations | 21.4 | 18.8 | |||
Total Debt, net, and Lease Obligations | 671.6 | 697.7 | |||
Cash and Cash Equivalents | 56.8 | 46.3 | |||
Available-for-Sale Securities | 83.3 | 134.2 | |||
Net Debt | $ | 531.5 | $ | 517.2 | |
Fleet
As of September 30, 2024, the Company had 44 aircraft in its passenger service fleet, operated 12 freighter aircraft in its cargo operation and had seven aircraft that are currently on lease to unaffiliated airlines.
Guidance for Fourth Quarter 2024
Q4 2024 | H/(L) vs Q4 2023 | ||||
Total revenue - millions | |||||
Economic fuel cost per gallon | (20)% | ||||
Operating income margin - percentage | 0pp to 2pp | ||||
Effective tax rate | | ||||
Total system block hours - thousands | 36.5 to 37.5 | ||||
Conference Call & Webcast Details
Sun Country Airlines will host a conference call to discuss its third quarter 2024 results at 8:30 a.m. Eastern Time on Thursday, October 31, 2024. A live broadcast of the conference call will be available via the investor relations section of Sun Country Airlines’ website at https://ir.suncountry.com/news-events/events-and-presentations. The online replay will be available on the same website approximately one hour after the call.
About Sun Country Airlines
Sun Country Airlines is a new breed of hybrid low-cost air carrier, whose mission is to connect guests to their favorite people and places, to create lifelong memories and transformative experiences. Sun Country dynamically deploys shared resources across our synergistic scheduled service, charter, and cargo businesses. Based in Minnesota, we focus on serving leisure and visiting friends and relatives (“VFR”) passengers and charter customers and providing cargo service to Amazon, with flights throughout the United States and to destinations in Mexico, Central America, Canada, and the Caribbean. For photos, b-roll and additional company information, visit https://www.stories.suncountry.com/multimedia.
End Notes
1 - | Records begin in January 2017 |
2 - | See additional details, including reconciliations to the most comparable GAAP measures, in the section titled “Non-GAAP financial measures” |
3 - | Adjusted CASM is a non-GAAP measure derived from CASM by excluding fuel costs, non-cash management stock compensation expense, costs arising from its cargo operations, depreciation and amortization recognized on certain assets that generate lease income, certain commissions, and other costs of selling its vacations product from this measure. See table titled “Reconciliation of CASM to Adjusted CASM” |
4 - | Scheduled Service TRASM includes Schedule Service revenue, Ancillary revenue, and ASM generating revenue classified within Other Revenue on the Condensed Consolidated Statement of Operations / Scheduled Service ASMs. Other Revenue includes rental revenue associated with certain assets that generate lease income of approximately |
5 - | Total liquidity = cash and cash equivalents + available-for-sale securities + amount available under revolver |
6 - | Net debt = current portion of long-term debt + long-term debt + finance lease obligations + operating lease obligations – cash and cash equivalents - available-for-sale securities |
Forward Looking Statements
This press release contains forward-looking statements, which involve risks and uncertainties. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management, and expected market growth are forward-looking statements. The forward-looking statements are relating to:
- our strategy, outlook and growth prospects;
- our operational and financial targets and dividend policy;
- general economic trends and trends in the industry and markets;
- potential repurchases of our common stock; and
- the competitive environment in which we operate.
These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.
These forward-looking statements reflect our views with respect to future events as of the date of this press release and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release and, except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release. We anticipate that subsequent events and developments will cause our views to change. You should read this press release completely and with the understanding that our actual future results may be materially different from what we expect. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may undertake. We qualify all of our forward-looking statements by these cautionary statements. Additional information concerning certain factors is contained in the Company’s Securities and Exchange Commission filings, including but not limited to the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
Non-GAAP Financial Measures
We sometimes use information that is derived from the Condensed Consolidated Financial Statements, but that is not presented in accordance with GAAP. We believe these non-GAAP measures provide a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. We believe certain charges included in our operating expenses on a GAAP basis make it difficult to compare our current period results to prior periods as well as future periods and guidance. The tables below show a reconciliation of non-GAAP financial measures used in this document to the most directly comparable GAAP financial measures.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts) (Unaudited- amounts may not recalculate due to rounding) | ||||||||||
Three Months Ended September 30, | ||||||||||
2024 | 2023 | % Change | ||||||||
Operating Revenues: | ||||||||||
Scheduled Service | $ | 83,784 | $ | 96,483 | (13.2 | ) | ||||
Charter | 50,769 | 47,437 | 7.0 | |||||||
Ancillary | 73,211 | 70,435 | 3.9 | |||||||
Passenger | 207,764 | 214,355 | (3.1 | ) | ||||||
Cargo | 29,165 | 26,059 | 11.9 | |||||||
Other | 12,541 | 8,462 | 48.2 | |||||||
Total Operating Revenue | 249,470 | 248,876 | 0.2 | |||||||
Operating Expenses: | ||||||||||
Aircraft Fuel | 54,737 | 61,179 | (10.5 | ) | ||||||
Salaries, Wages, and Benefits | 80,919 | 72,541 | 11.5 | |||||||
Aircraft Rent | — | 22 | (100.0 | ) | ||||||
Maintenance | 15,973 | 15,330 | 4.2 | |||||||
Sales and Marketing | 7,748 | 7,569 | 2.4 | |||||||
Depreciation and Amortization | 23,754 | 22,762 | 4.4 | |||||||
Ground Handling | 11,568 | 9,382 | 23.3 | |||||||
Landing Fees and Airport Rent | 15,979 | 13,958 | 14.5 | |||||||
Other Operating, net | 26,410 | 27,127 | (2.6 | ) | ||||||
Total Operating Expenses | 237,088 | 229,870 | 3.1 | |||||||
Operating Income | 12,382 | 19,006 | (34.9 | ) | ||||||
Non-operating Income (Expense): | ||||||||||
Interest Income | 1,659 | 2,480 | (33.1 | ) | ||||||
Interest Expense | (11,049 | ) | (11,403 | ) | (3.1 | ) | ||||
Other, net | 12 | (15 | ) | NM | ||||||
Total Non-operating Expense, net | (9,378 | ) | (8,938 | ) | 4.9 | |||||
Income before Income Tax | 3,004 | 10,068 | (70.2 | ) | ||||||
Income Tax Expense | 662 | 2,477 | (73.3 | ) | ||||||
Net Income | $ | 2,342 | $ | 7,591 | (69.1 | ) | ||||
Net Income per share to common stockholders: | ||||||||||
Basic | $ | 0.04 | $ | 0.14 | (71.4 | ) | ||||
Diluted | $ | 0.04 | $ | 0.13 | (69.2 | ) | ||||
Shares used for computation: | ||||||||||
Basic | 52,876,339 | 55,435,386 | (4.6 | ) | ||||||
Diluted | 54,780,672 | 58,595,646 | (6.5 | ) | ||||||
NM - not meaningful |
Nine Months Ended September 30, | ||||||||||
2024 | 2023 | % Change | ||||||||
Operating Revenues: | ||||||||||
Scheduled Service | $ | 313,056 | $ | 360,607 | (13.2 | ) | ||||
Charter | 149,090 | 143,250 | 4.1 | |||||||
Ancillary | 236,677 | 205,633 | 15.1 | |||||||
Passenger | 698,823 | 709,490 | (1.5 | ) | ||||||
Cargo | 78,560 | 74,437 | 5.5 | |||||||
Other | 37,951 | 20,150 | 88.3 | |||||||
Total Operating Revenue | 815,334 | 804,077 | 1.4 | |||||||
Operating Expenses: | ||||||||||
Aircraft Fuel | 187,229 | 185,829 | 0.8 | |||||||
Salaries, Wages, and Benefits | 242,516 | 223,890 | 8.3 | |||||||
Aircraft Rent | — | 2,281 | (100.0 | ) | ||||||
Maintenance | 50,129 | 44,311 | 13.1 | |||||||
Sales and Marketing | 26,819 | 26,005 | 3.1 | |||||||
Depreciation and Amortization | 71,194 | 64,577 | 10.2 | |||||||
Ground Handling | 32,090 | 28,299 | 13.4 | |||||||
Landing Fees and Airport Rent | 44,431 | 36,847 | 20.6 | |||||||
Other Operating, net | 81,003 | 81,663 | (0.8 | ) | ||||||
Total Operating Expenses | 735,411 | 693,702 | 6.0 | |||||||
Operating Income | 79,923 | 110,375 | (27.6 | ) | ||||||
Non-operating Income (Expense): | ||||||||||
Interest Income | 5,907 | 7,766 | (23.9 | ) | ||||||
Interest Expense | (33,238 | ) | (31,272 | ) | 6.3 | |||||
Other, net | 55 | (370 | ) | NM | ||||||
Total Non-operating Expense, net | (27,276 | ) | (23,876 | ) | 14.2 | |||||
Income before Income Tax | 52,647 | 86,499 | (39.1 | ) | ||||||
Income Tax Expense | 13,180 | 19,963 | (34.0 | ) | ||||||
Net Income | $ | 39,467 | $ | 66,536 | (40.7 | ) | ||||
Net Income per share to common stockholders: | ||||||||||
Basic | $ | 0.75 | $ | 1.19 | (37.0 | ) | ||||
Diluted | $ | 0.72 | $ | 1.12 | (35.7 | ) | ||||
Shares used for computation: | ||||||||||
Basic | 52,866,797 | 56,051,173 | (5.7 | ) | ||||||
Diluted | 54,990,437 | 59,281,819 | (7.2 | ) | ||||||
NM - not meaningful |
KEY OPERATING STATISTICS - amounts may not recalculate due to rounding | ||||||||||||
The following tables presents key operating statistics and metrics for the three and nine months ended September 30, 2024 and 2023. | ||||||||||||
Three Months Ended September 30, | ||||||||||||
2024 | 2023 | % Change | ||||||||||
Scheduled Service Statistics: | ||||||||||||
Revenue passenger miles (RPMs) – thousands | 1,288,460 | 1,252,583 | 2.9 | |||||||||
Available seat miles (ASMs) – thousands | 1,530,058 | 1,446,462 | 5.8 | |||||||||
Load factor | (2.4 | ) | (3 | ) | ||||||||
Revenue passengers carried | 1,112,455 | 1,090,172 | 2.0 | |||||||||
Departures | 7,259 | 6,878 | 5.5 | |||||||||
Block hours | 21,416 | 19,935 | 7.4 | |||||||||
Scheduled service TRASM(1)- cents | 10.42 | 11.72 | (11.1 | ) | ||||||||
Average base fare per passenger | $ | 75.31 | $ | 88.50 | (14.9 | ) | ||||||
Ancillary revenue per passenger | $ | 65.81 | $ | 64.61 | 1.9 | |||||||
Total fare per passenger | $ | 141.13 | $ | 153.11 | (7.8 | ) | ||||||
Fuel gallons - thousands | 16,565 | 15,536 | 6.6 | |||||||||
Charter Statistics: | ||||||||||||
Departures | 2,809 | 2,688 | 4.5 | |||||||||
Block hours | 5,366 | 5,274 | 1.7 | |||||||||
Available seats miles (ASMs) - thousands | 328,142 | 322,722 | 1.7 | |||||||||
Fuel gallons - thousands | 3,525 | 3,513 | 0.3 | |||||||||
Cargo Statistics: | ||||||||||||
Departures | 3,519 | 3,432 | 2.5 | |||||||||
Block hours | 8,957 | 9,287 | (3.6 | ) | ||||||||
Total System Statistics: | ||||||||||||
Average passenger aircraft | 43.6 | 42.0 | 3.8 | |||||||||
Passenger aircraft – end of period | 44 | 42 | 4.8 | |||||||||
Cargo aircraft – end of period | 12 | 12 | — | |||||||||
Leased aircraft – end of period | 7 | 5 | 40.0 | |||||||||
Available seat miles (ASMs) – thousands | 1,884,889 | 1,791,485 | 5.2 | |||||||||
Departures | 13,730 | 13,128 | 4.6 | |||||||||
Block hours | 36,191 | 34,874 | 3.8 | |||||||||
Daily utilization – hours | 6.8 | 6.6 | 3.0 | |||||||||
Average stage length – miles | 1,001 | 1,005 | (0.4 | ) | ||||||||
Total revenue per ASM (TRASM) - cents | 11.15 | 12.11 | (7.9 | ) | ||||||||
Cost per ASM (CASM) - cents | 12.58 | 12.83 | (1.9 | ) | ||||||||
Adjusted CASM(2)- cents | 8.04 | 7.75 | 3.7 | |||||||||
Fuel gallons - thousands | 20,344 | 19,262 | 5.6 | |||||||||
Fuel cost per gallon | $ | 2.69 | $ | 3.19 | (15.7 | ) | ||||||
Employees at end of period | 2,965 | 2,692 | 10.1 | |||||||||
1 – See note 3 in end notes | ||||||||||||
2 – See note 4 in end notes | ||||||||||||
3- Percentage point difference |
Nine Months Ended September 30, | ||||||||||||
2024 | 2023 | % Change | ||||||||||
Scheduled Service Statistics: | ||||||||||||
Revenue passenger miles (RPMs) – thousands | 4,335,623 | 3,900,975 | 11.1 | |||||||||
Available seat miles (ASMs) – thousands | 5,098,876 | 4,489,968 | 13.6 | |||||||||
Load factor | (1.9 | ) | (3 | ) | ||||||||
Revenue passengers carried | 3,437,005 | 3,093,536 | 11.1 | |||||||||
Departures | 22,109 | 19,456 | 13.6 | |||||||||
Block hours | 70,312 | 61,438 | 14.4 | |||||||||
Scheduled service TRASM(1)- cents | 10.95 | 12.80 | (14.5 | ) | ||||||||
Average base fare per passenger | $ | 91.08 | $ | 116.57 | (21.9 | ) | ||||||
Ancillary revenue per passenger | $ | 68.86 | $ | 66.47 | 3.6 | |||||||
Total fare per passenger | $ | 159.95 | $ | 183.04 | (12.6 | ) | ||||||
Fuel gallons - thousands | 54,634 | 48,046 | 13.7 | |||||||||
Charter Statistics: | ||||||||||||
Departures | 7,638 | 7,816 | (2.3 | ) | ||||||||
Block hours | 15,355 | 15,994 | (4.0 | ) | ||||||||
Available seats miles (ASMs) - thousands | 937,057 | 961,953 | (2.6 | ) | ||||||||
Fuel gallons - thousands | 10,558 | 11,063 | (4.6 | ) | ||||||||
Cargo Statistics: | ||||||||||||
Departures | 9,726 | 9,643 | 0.9 | |||||||||
Block hours | 25,008 | 25,633 | (2.4 | ) | ||||||||
Total System Statistics: | ||||||||||||
Average passenger aircraft | 42.6 | 41.8 | 1.9 | |||||||||
Passenger aircraft – end of period | 44 | 42 | 4.8 | |||||||||
Cargo aircraft – end of period | 12 | 12 | — | |||||||||
Leased aircraft – end of period | 7 | 5 | 40.0 | |||||||||
Available seat miles (ASMs) – thousands | 6,108,695 | 5,516,826 | 10.7 | |||||||||
Departures | 39,879 | 37,295 | 6.9 | |||||||||
Block hours | 111,908 | 104,188 | 7.4 | |||||||||
Daily utilization – hours | 7.4 | 6.9 | 7.2 | |||||||||
Average stage length – miles | 1,100 | 1,088 | 1.1 | |||||||||
Total revenue per ASM (TRASM) - cents | 11.58 | 13.01 | (11.0 | ) | ||||||||
Cost per ASM (CASM) - cents | 12.04 | 12.57 | (4.2 | ) | ||||||||
Adjusted CASM(2)- cents | 7.51 | 7.56 | (0.7 | ) | ||||||||
Fuel gallons - thousands | 65,884 | 59,734 | 10.3 | |||||||||
Fuel cost per gallon | $ | 2.86 | $ | 3.12 | (8.3 | ) | ||||||
Employees at end of period | 2,965 | 2,692 | 10.1 | |||||||||
1 – See note 3 in end notes | ||||||||||||
2 – See note 4 in end notes | ||||||||||||
3- Percentage point difference |
SUMMARY BALANCE SHEET (Dollars in millions) (amounts may not recalculate due to rounding) | ||||||||
September 30, 2024 | December 31, 2023 | % Change | ||||||
(Unaudited) | ||||||||
Cash & Cash Equivalents | $ | 56.8 | $ | 46.3 | 22.7 | |||
Other Current Assets | 169.2 | 225.1 | (24.8 | ) | ||||
Total Current Assets | 226.0 | 271.4 | (16.7 | ) | ||||
Total Property & Equipment, net | 993.1 | 969.0 | 2.5 | |||||
Other | 390.7 | 383.3 | 1.9 | |||||
Total Assets | 1,609.9 | 1,623.6 | (0.8 | ) | ||||
Air Traffic Liabilities | 131.5 | 158.0 | (16.8 | ) | ||||
Current Finance Lease Obligations | 42.2 | 44.8 | (5.8 | ) | ||||
Current Operating Lease Obligations | 3.2 | 2.2 | 45.5 | |||||
Current Maturities of Long-Term Debt, net | 75.9 | 74.2 | 2.3 | |||||
Income Tax Receivable Agreement Liability | 9.5 | 3.3 | 187.9 | |||||
Other Current Liabilities | 118.5 | 136.2 | (13.0 | ) | ||||
Total Current Liabilities | 380.8 | 418.6 | (9.0 | ) | ||||
Finance Lease Obligations | 256.3 | 232.5 | 10.2 | |||||
Operating Lease Obligations | 18.2 | 16.6 | 9.6 | |||||
Long-Term Debt, net | 275.9 | 327.5 | (15.8 | ) | ||||
Income Tax Receivable Agreement Liability | 88.2 | 97.8 | (9.8 | ) | ||||
Other | 38.0 | 16.2 | 134.6 | |||||
Total Liabilities | 1,057.3 | 1,109.2 | (4.7 | ) | ||||
Total Stockholders’ Equity | $ | 552.5 | $ | 514.4 | 7.4 |
SUMMARY CASH FLOW (Dollars in millions) (Unaudited - amounts may not recalculate due to rounding) | ||||||||||
Nine Months Ended September 30, | ||||||||||
2024 | 2023 | % Change | ||||||||
Net Cash Provided by Operating Activities | $ | 74.3 | $ | 102.7 | (27.7 | ) | ||||
Purchases of Property & Equipment | (42.6 | ) | (210.6 | ) | (79.8 | ) | ||||
Other, net | 63.6 | 32.4 | 96.3 | |||||||
Net Cash Provided by (Used in) Investing Activities | 20.9 | (178.3 | ) | 111.7 | ||||||
Common Stock Repurchases | (11.5 | ) | (55.1 | ) | (79.1 | ) | ||||
Proceeds from Borrowing | 10.0 | 119.2 | (91.6 | ) | ||||||
Repayment of Finance Lease Obligations | (26.2 | ) | (16.4 | ) | 59.8 | |||||
Repayment of Borrowings | (60.8 | ) | (35.5 | ) | 71.3 | |||||
Other, net | (3.0 | ) | (1.7 | ) | 76.5 | |||||
Net Cash Provided by (Used in) Financing Activities | (91.5 | ) | 10.6 | NM | ||||||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 3.8 | (65.0 | ) | 105.8 | ||||||
Cash, Cash Equivalents and Restricted Cash – Beginning of the Period | 63.7 | 102.9 | (38.1 | ) | ||||||
Cash, Cash Equivalents and Restricted Cash – End of the Period | $ | 67.4 | $ | 37.9 | 77.8 | |||||
NM - not meaningful | ||||||||||
NON-GAAP FINANCIAL MEASURES
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted Net Income per Share, Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted Net Income per share, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures included as supplemental disclosure because we believe they are useful indicators of our operating performance. Derivations of Operating Income and Net Income are well recognized performance measurements in the airline industry that are frequently used by our management, as well as by investors, securities analysts and other interested parties in comparing the operating performance of companies in our industry.
The measures described above have limitations as analytical tools. Some of the limitations applicable to these measures include: they do not reflect the impact of certain cash and non-cash charges resulting from matters we consider not to be indicative of our ongoing operations; and other companies in our industry may calculate these non-GAAP measures differently than we do, limiting each measure’s usefulness as a comparative measure. Because of these limitations, the following non-GAAP measures should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP and may not be the same as or comparable to similarly titled measures presented by other companies due to the possible differences in the method of calculation and in the items being adjusted.
For the aforementioned reasons, Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted Net Income per Share, Adjusted EBITDA and Adjusted EBITDA Margin have significant limitations which affect their use as indicators of our profitability. Accordingly, readers are cautioned not to place undue reliance on this information.
Reconciliation of GAAP Operating Income to Adjusted Operating Income | |||||||||||||||
Dollars in millions – Unaudited - amounts may not recalculate due to rounding | |||||||||||||||
The following table presents the reconciliation of GAAP operating income to adjusted operating income. | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Operating Revenue | $ | 249.5 | $ | 248.9 | $ | 815.3 | $ | 804.1 | |||||||
Operating Income | 12.4 | 19.0 | 79.9 | 110.4 | |||||||||||
Stock Compensation Expense | 1.5 | 1.0 | 4.6 | 8.1 | |||||||||||
Adjusted Operating Income | $ | 13.9 | $ | 20.0 | $ | 84.5 | $ | 118.5 | |||||||
Operating Income Margin | 5.0 % | 7.6 % | 9.8 % | 13.7 % | |||||||||||
Adjusted Operating Income Margin | 5.6 % | 8.1 % | 10.4 % | 14.7 % |
Reconciliation of GAAP Income Before Income Tax to Adjusted Income Before Income Tax | |||||||||||||||
Dollars in millions – Unaudited - amounts may not recalculate due to rounding | |||||||||||||||
The following table presents the reconciliation of GAAP income before income tax to adjusted income before income tax. | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net Income | $ | 2.3 | $ | 7.6 | $ | 39.5 | $ | 66.5 | |||||||
Add: Provision for Income Tax Expense | 0.7 | 2.5 | 13.2 | 20.0 | |||||||||||
Income Before Income Tax, as reported | 3.0 | 10.1 | 52.6 | 86.5 | |||||||||||
Pre-tax margin | 1.2 | % | 4.0 | % | 6.5 | % | 10.8 | % | |||||||
Stock Compensation Expense | 1.5 | 1.0 | 4.6 | 8.1 | |||||||||||
Tax Receivable Agreement adjustment (1) | — | — | — | (0.4 | ) | ||||||||||
Secondary offering costs | — | — | — | 0.6 | |||||||||||
Adjusted Income Before Income Tax | $ | 4.5 | $ | 11.1 | $ | 57.2 | $ | 94.9 | |||||||
Adjusted Pre-tax margin | 1.8 | % | 4.5 | % | 7.0 | % | 11.8 | % | |||||||
(1) This represents the adjustment to the TRA for the period, which is recorded in Non-Operating Income (Expense) |
Reconciliation of GAAP Net Income and Earnings per Share to Adjusted Net Income and Adjusted Earnings per Share | |||||||||||||||
Dollars and shares in millions, except for per share – Unaudited - amounts may not recalculate due to rounding | |||||||||||||||
The following table presents the reconciliation of GAAP net income and earnings per share to adjusted net income and adjusted earnings per share. | |||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2024 | 2023 | ||||||||||||||
Dollars | Per Share - diluted | Dollars | Per Share - diluted | ||||||||||||
Net Income | $ | 2.3 | $ | 0.04 | $ | 7.6 | $ | 0.13 | |||||||
Stock Compensation Expense | 1.5 | 0.03 | 1.0 | 0.02 | |||||||||||
Income tax effect of adjusting items, net(1) | (0.3 | ) | (0.01 | ) | (0.2 | ) | — | ||||||||
Adjusted Net Income | $ | 3.5 | $ | 0.06 | $ | 8.4 | $ | 0.14 | |||||||
Diluted share count | 54.8 | 58.6 |
Nine Months Ended September 30, | |||||||||||||||
2024 | 2023 | ||||||||||||||
Dollars | Per Share - diluted | Dollars | Per Share - diluted | ||||||||||||
Net Income | $ | 39.5 | $ | 0.72 | $ | 66.5 | $ | 1.12 | |||||||
Stock Compensation Expense | 4.6 | 0.08 | 8.1 | 0.14 | |||||||||||
Tax Receivable Agreement adjustment(2) | — | — | (0.4 | ) | (0.01 | ) | |||||||||
Secondary offering costs | — | — | 0.6 | 0.01 | |||||||||||
Income tax effect of adjusting items, net(1) | (1.1 | ) | (0.02 | ) | (2.0 | ) | (0.03 | ) | |||||||
Adjusted Net Income | $ | 43.0 | $ | 0.78 | $ | 72.9 | $ | 1.23 | |||||||
Diluted share count | 55.0 | 59.3 | |||||||||||||
(1) The tax effect of adjusting items, net is calculated at the Company’s statutory rate for the application period | |||||||||||||||
(2) This represents the adjustment to the TRA for the period, which is recorded in Non-Operating Income (Expense) |
Reconciliation of GAAP Net Income to Adjusted EBITDA | |||||||||||||||
Dollars in millions – Unaudited - amounts may not recalculate due to rounding | |||||||||||||||
The following tables present the reconciliation of net income to adjusted EBITDA for the periods presented below. | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net Income | $ | 2.3 | $ | 7.6 | $ | 39.5 | $ | 66.5 | |||||||
Interest Income | (1.7 | ) | (2.5 | ) | (5.9 | ) | (7.8 | ) | |||||||
Interest Expense | 11.0 | 11.4 | 33.2 | 31.3 | |||||||||||
Stock Compensation Expense | 1.5 | 1.0 | 4.6 | 8.1 | |||||||||||
Tax Receivable Agreement adjustment(1) | — | — | — | (0.4 | ) | ||||||||||
Secondary offering costs | — | — | — | 0.6 | |||||||||||
Provision for Income Taxes | 0.7 | 2.5 | 13.2 | 20.0 | |||||||||||
Depreciation and Amortization | 23.8 | 22.8 | 71.2 | 64.6 | |||||||||||
Adjusted EBITDA | $ | 37.6 | $ | 42.8 | $ | 155.7 | $ | 183.0 | |||||||
Adjusted EBITDA margin | 15.1 | % | 17.2 | % | 19.1 | % | 22.8 | % | |||||||
(1) This represents the adjustment to the TRA for the period, which is recorded in Non-Operating Income (Expense) | |||||||||||||||
Adjusted CASM
Adjusted CASM is a non-GAAP measure derived from CASM by excluding fuel costs, costs related to our cargo operations, stock based compensation, depreciation and amortization recognized on certain assets that generate lease income, certain commissions and other costs of selling our vacations product from this measure as these costs are unrelated to our airline operations and improve comparability to our peers. Adjusted CASM is an important measure used by management and by our board of directors in assessing quarterly and annual cost performance. Adjusted CASM is also a measure commonly used by industry analysts and we believe it is an important metric by which they compare our airline to others in the industry, although other airlines may exclude certain other costs in their calculation of Adjusted CASM. The measure is also the subject of frequent questions from investors.
Adjusted CASM excludes fuel costs. By excluding volatile fuel costs that are outside of our control from our unit metrics, we believe that we have better visibility into the results of operations and our non-fuel cost initiatives. Our industry is highly competitive and is characterized by high fixed costs, so even a small reduction in non-fuel operating costs can lead to a significant improvement in operating results. In addition, we believe that all domestic carriers are similarly impacted by changes in jet fuel costs over the long run, so it is important for management and investors to understand the impact and trends in company-specific cost drivers, such as labor rates, aircraft and maintenance costs, and productivity, which are more controllable by management.
We have excluded costs related to the cargo operations and depreciation recognized on our aircraft and flight equipment held for operating lease as these operations do not create ASMs. We have entered into a series of aircraft-related transactions where we act as an aircraft lessor. As of September 30, 2024, we leased or subleased seven aircraft. Depreciation expense on these aircraft materially began during the three months ended June 30, 2023. Adjusted CASM further excludes other adjustments, as defined in the relevant reporting period, that are not representative of the ongoing costs necessary to our airline operations and may improve comparability between periods. We also exclude stock compensation expense when computing Adjusted CASM. The Company’s compensation strategy includes the use of stock-based compensation to attract and retain employees and executives and is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, stock-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any period.
As derivations of Adjusted CASM are not determined in accordance with GAAP, such measures are susceptible to varying calculations and not all companies calculate the measures in the same manner. As a result, derivations of Adjusted CASM as presented may not be directly comparable to similarly titled measures presented by other companies. Adjusted CASM should not be considered in isolation or as a replacement for CASM. For the aforementioned reasons, Adjusted CASM has significant limitations which affect its use as an indicator of our profitability. Accordingly, readers are cautioned not to place undue reliance on this information.
Reconciliation of CASM to Adjusted CASM | |||||||||
Amounts may not recalculate due to rounding, dollar amounts in millions | |||||||||
The following table presents the reconciliation of CASM to Adjusted CASM. | |||||||||
Three Months Ended September 30, | |||||||||
2024 | 2023 | ||||||||
Operating Expenses - mm | Per ASM (cents) | Operating Expenses - mm | Per ASM (cents) | ||||||
CASM | $ | 237.1 | 12.58 | $ | 229.9 | 12.83 | |||
Less: | |||||||||
Aircraft Fuel | 54.7 | 2.90 | 61.2 | 3.41 | |||||
Stock Compensation Expense | 1.5 | 0.08 | 1.0 | 0.06 | |||||
Cargo expenses, not already adjusted above | 27.1 | 1.45 | 26.4 | 1.48 | |||||
Sun Country Vacations | 0.2 | 0.01 | 0.2 | 0.01 | |||||
Leased Aircraft, Depreciation and Amortization Expense | 2.0 | 0.10 | 2.2 | 0.12 | |||||
Adjusted CASM | $ | 151.5 | 8.04 | $ | 138.8 | 7.75 | |||
Available seat miles (ASMs) - mm | 1,884.9 | 1,791.5 |
Nine Months Ended September 30, | |||||||||
2024 | 2023 | ||||||||
Operating Expenses - mm | Per ASM (cents) | Operating Expenses - mm | Per ASM (cents) | ||||||
CASM | $ | 735.4 | 12.04 | $ | 693.7 | 12.57 | |||
Less: | |||||||||
Aircraft Fuel | 187.2 | 3.06 | 185.8 | 3.37 | |||||
Stock Compensation Expense | 4.6 | 0.07 | 8.1 | 0.14 | |||||
Cargo expenses, not already adjusted above | 77.4 | 1.28 | 77.2 | 1.40 | |||||
Sun Country Vacations | 1.0 | 0.02 | 0.9 | 0.02 | |||||
Leased Aircraft, Depreciation and Amortization Expense | 6.3 | 0.10 | 4.5 | 0.08 | |||||
Adjusted CASM | $ | 458.9 | 7.51 | $ | 417.2 | 7.56 | |||
Available seat miles (ASMs) - mm | 6,108.7 | 5,516.8 | |||||||
This press release was published by a CLEAR® Verified individual.
FAQ
What was Sun Country Airlines (SNCY) revenue in Q3 2024?
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