MINNEAPOLIS, Feb. 05, 2026 (GLOBE NEWSWIRE) -- Sun Country Airlines Holdings, Inc. ("Sun Country Airlines," "Sun Country," the "Company") (NASDAQ:SNCY) today reported financial results for its fourth quarter and full year ended December 31, 2025.
"I'm proud to report our 14th consecutive profitable quarter and fifth consecutive year of profitability," said Jude Bricker, President and Chief Executive Officer of Sun Country. "2025 was a transformative and successful year for Sun Country. We expanded our cargo fleet by eight aircraft to strengthen our cargo business. This strategic growth required deliberate capacity adjustments in our scheduled service network, and despite this complexity, we delivered margins that are among the highest in the industry. This achievement reflects the exceptional dedication and effort of our team. Recently, we announced our transformative merger with Allegiant, and we are looking forward to capitalizing on our promise of our combined airline for our customers, employees, and shareholders alike. We continue to focus on executing a safe, reliable profitable airline."
Overview of Fourth Quarter and Full Year
Three Months Ended December 31,
(unaudited) (in millions, except per share amounts)
2025
2024
% Change
Total Operating Revenue
$
281.0
$
260.4
7.9
Operating Income
18.2
26.1
(30.3
)
Income Before Income Tax
11.4
16.9
(32.9
)
Net Income
8.1
13.4
(39.4
)
Diluted earnings per share
$
0.15
$
0.24
(37.5
)
Three Months Ended December 31,
(unaudited) (in millions, except per share amounts)
2025
2024
% Change
Adjusted Operating Income (2)
$
19.5
$
27.5
(29.0
)
Adjusted Income Before Income Tax (2)
12.7
18.9
(32.8
)
Adjusted Net Income (2)
9.2
15.0
(38.6
)
Adjusted diluted earnings per share (2)
$
0.17
$
0.27
(37.0
)
Year Ended December 31,
(unaudited) (in millions, except per share amounts)
2025
2024
% Change
Total Operating Revenue
$
1,126.8
$
1,075.7
4.7
Operating Income
100.6
106.0
(5.1
)
Income Before Income Tax
70.2
69.6
0.9
Net Income
52.8
52.9
(0.2
)
Diluted earnings per share
$
0.96
$
0.96
—
Year Ended December 31,
(unaudited) (in millions, except per share amounts)
2025
2024
% Change
Adjusted Operating Income (2)
$
109.5
$
112.0
(2.2
)
Adjusted Income Before Income Tax (2)
80.2
76.1
5.3
Adjusted Net Income (2)
60.5
58.0
4.4
Adjusted diluted earnings per share (2)
$
1.10
$
1.05
4.8
Amounts presented in the tables above may not recalculate due to rounding
For the quarter ended December 31, 2025, Sun Country reported Income Before Income Tax of $11.4 million and Net Income of $8.1 million, on $281.0 million of revenue. Adjusted Income Before Income Tax for the quarter was $12.7 million(2). GAAP Operating Income during the quarter was $18.2 million, producing an Operating Income Margin of 6.5%, while Adjusted Operating Income was $19.5 million(2), resulting in an Adjusted Operating Income Margin of 7.0%(2).
"Our diversified business model delivered exceptional results in the fourth quarter, with record cargo revenue(1) and the highest fourth quarter charter revenue in company history(1)," said Torque Zubeck, Chief Financial Officer. "Our strong charter performance demonstrates the flexibility of our business model and our ability to quickly respond to opportunities in the market. In scheduled service, capacity decreased 9.8% as resources were redeployed to accommodate our cargo fleet expansion. The reduction in scheduled service capacity combined with a strong demand environment drove scheduled service TRASM(3) growth of 8.9%. We are well positioned for continued growth in 2026 as first quarter demand trends remain strong and we will be growing back our scheduled service business later in the year."
Notable Operational Highlights
Announced plans to open a new operational base at Cincinnati/Northern Kentucky International Airport (CVG) in early 2026 which we believe will bolster operational efficiencies in our cargo business
Plans to add two new cargo aircraft to the fleet, with both aircraft expected to be operational in early third quarter 2026. One of these aircraft will be utilized as a spare to support the cargo operation.
Received one 737-900ER and one 737-800 during the quarter. Both of these aircraft were previously on lease with other operators and are being transitioned into Sun Country configurations and are expected to enter into service by the end of first quarter 2026.
Currently has three aircraft on lease that are expected to be returned to the Company through 2026
Capacity
System block hours flown during the fourth quarter of 2025 grew by 9.2% year-over-year, driven by the segments under contract. Cargo block hours increased in the fourth quarter by 50.6% year-over-year while charter block hours increased 12.4%. Scheduled service block hours declined 8.5% in the quarter as pilot resources were shifted to support cargo growth.
Revenue
The Company experienced strong scheduled service demand during the fourth quarter. Scheduled service TRASM(3) increased 8.9% year-over-year on a 9.8% decrease in scheduled service ASMs. Average base fare, ancillary revenue per passenger, and scheduled service load factor all increased versus the fourth quarter of 2024.
Charter revenue increased 18.0% on a 12.4% increase in charter block hours. Charter flying under long-term contracts accounted for 64% of charter block hours versus 61% in the fourth quarter of 2024.
Fourth quarter cargo revenue increased 67.9% on block hour growth of 50.6%, primarily driven by the eight additional cargo aircraft deployed earlier in the year.
Cost
Fourth quarter GAAP operating expense increased 12.1%, compared to total block hour growth of 9.2%. Fuel cost per gallon increased 3.6%.
CASM increased 19.1% on a 5.8% decrease in system ASMs. Adjusted CASM(4) increased 12.1%, primarily driven by headcount growth of 4.5% to support the expanded aircraft fleet and a significant increase in scheduled heavy maintenance versus the fourth quarter of 2024 as the Company was able to pull forward some events from 2026.
Balance Sheet and Liquidity
Total liquidity(5) was $302.8 million on December 31, 2025, while the Company's net debt(6) was $364.0 million.
(in millions - amounts may not recalculate due to rounding)
December 31, 2025
December 31, 2024
(Unaudited)
Cash and Cash Equivalents
$
144.7
$
83.2
Available-for-Sale Securities
83.1
97.6
Amount Available Under Revolving Credit Facility
75.0
24.7
Total Liquidity
$
302.8
$
205.6
(in millions - amounts may not recalculate due to rounding)
December 31, 2025
December 31, 2024
(Unaudited)
Total Debt, net
$
323.3
$
327.1
Finance Lease Obligations
251.1
271.3
Operating Lease Obligations
17.4
20.7
Total Debt and Lease Obligations
591.8
619.0
Cash and Cash Equivalents
144.7
83.2
Available-for-Sale Securities
83.1
97.6
Net Debt
$
364.0
$
438.2
Fleet
As of December 31, 2025, the Company had 47 aircraft in its passenger service fleet, operated 20 freighter aircraft in its cargo operation and had three aircraft that are currently on lease to unaffiliated airlines.
Pending Transaction with Allegiant
On January 11, 2026, Sun Country and Allegiant entered into a definitive agreement under which Allegiant will acquire all of the outstanding shares of Sun Country in a cash and stock transaction (the "Merger").
In light of the pending transaction, Sun Country will not host a live conference call to discuss its financial results, and Sun Country will no longer provide quarterly guidance.
The transaction is expected to close in the second half of 2026, subject to receipt of U.S. federal antitrust clearance and other required regulatory approvals, the approval of both companies' shareholders and other customary closing conditions.
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 CMI services, 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 began in January 2017
2 -
See additional details, including reconciliations to the most comparable GAAP measures, in the section titled "Non-GAAP financial measures"
3 -
Scheduled Service TRASM includes Schedule Service revenue, Ancillary revenue, and ASM generating revenue classified within Other Revenue on the Consolidated Statement of Operations / Scheduled Service ASMs. Other Revenue includes rental revenue of approximately $8.4 million and $13.1 million associated with certain assets that generate lease income in the three months ended December 31, 2025 and 2024, respectively and $35.2 million and $42.3 million associated with certain assets that generate lease income in the year ended December 31, 2025 and 2024, respectively, which is not included.
4 -
Adjusted CASM is a metric that uses 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 unplanned engine events, certain commissions, and other costs of selling its vacations product from this measure. See table titled "Reconciliation of CASM to Adjusted CASM"
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 within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, 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;
the competitive environment in which we operate.
our ability to complete Merger;
the parties' ability to satisfy the conditions to the consummation of the Merger;
risks associated with substantial costs and management resources required to consummate the Merger;
the impact of certain interim covenants that we are subject to under the merger agreement; and
other risks associated with failure to consummate the cash tender offer and merger;
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 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.
CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in thousands, except shares and per share amounts) (Unaudited)
Three Months Ended December 31,
2025
2024
% Change
Operating Revenues:
Scheduled Service
$
95,592
$
96,077
(0.5
)
Charter
56,591
47,955
18.0
Ancillary
69,292
71,232
(2.7
)
Passenger
221,475
215,264
2.9
Cargo
48,045
28,615
67.9
Other
11,441
16,527
(30.8
)
Total Operating Revenue
280,961
260,406
7.9
Operating Expenses:
Aircraft Fuel
49,742
49,931
(0.4
)
Salaries, Wages, and Benefits
97,101
84,259
15.2
Maintenance
25,114
18,641
34.7
Sales and Marketing
7,923
8,116
(2.4
)
Depreciation and Amortization
24,419
23,795
2.6
Ground Handling
10,474
10,027
4.5
Landing Fees and Airport Rent
16,146
15,119
6.8
Special Items, net (1)
12
—
NM
Other Operating, net
31,867
24,456
30.3
Total Operating Expenses
262,798
234,344
12.1
Operating Income
18,163
26,062
(30.3
)
Non-operating Income (Expense), net:
Interest Income
2,013
1,927
4.5
Interest Expense
(8,838
)
(11,063
)
(20.1
)
Other, net
15
—
NM
Total Non-operating Expense, net
(6,810
)
(9,136
)
(25.5
)
Income before Income Tax
11,353
16,926
(32.9
)
Income Tax Expense
3,207
3,490
(8.1
)
Net Income
$
8,146
$
13,436
(39.4
)
Net Income per share to common stockholders:
Basic
$
0.15
$
0.25
(40.0
)
Diluted
$
0.15
$
0.24
(37.5
)
Shares used for computation:
Basic
52,872,877
53,031,997
(0.3
)
Diluted
54,478,675
55,251,373
(1.4
)
NM - not meaningful
1,
In March 2025, the Company's flight attendants, represented by the International Brotherhood of Teamsters, ratified a new five-year collective bargaining agreement. Upon ratification of the new agreement, eligible flights attendants became entitled to a one-time ratification bonus. Eligibility requirements stipulate that flight attendants must be on the seniority list as of the ratification date, have completed probation, and hold an active status in order to receive the bonus payment. Ratification bonuses were paid to all eligible flight attendants during the three months and year ended December 31, 2025, per the collective bargaining agreement. Certain portions of the ratification bonus are paid in future periods as flight attendants on the seniority list as of the ratification date complete their probationary period or change their status from inactive to active. The ratification bonus and payroll related tax expense were included within Special Items, net.
CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in thousands, except per share amounts) (Unaudited)
Year Ended December 31,
2025
2024
% Change
Operating Revenues:
Scheduled Service
$
403,998
$
409,133
(1.3
)
Charter
224,227
197,045
13.8
Ancillary
294,904
307,909
(4.2
)
Passenger
923,129
914,087
1.0
Cargo
155,027
107,174
44.6
Other
48,613
54,478
(10.8
)
Total Operating Revenue
1,126,769
1,075,739
4.7
Operating Expenses:
Aircraft Fuel
213,480
237,160
(10.0
)
Salaries, Wages, and Benefits
372,597
326,775
14.0
Maintenance
80,349
68,770
16.8
Sales and Marketing
33,300
34,935
(4.7
)
Depreciation and Amortization
98,878
94,989
4.1
Ground Handling
44,701
42,118
6.1
Landing Fees and Airport Rent
64,761
59,549
8.8
Special Items, net (1)
1,886
—
NM
Other Operating, net
116,244
105,457
10.2
Total Operating Expenses
1,026,196
969,753
5.8
Operating Income
100,573
105,986
(5.1
)
Non-operating Income (Expense), net:
Interest Income
6,973
7,833
(11.0
)
Interest Expense
(36,861
)
(44,300
)
(16.8
)
Other, net
(474
)
55
961.8
Total Non-operating Expense, net
