Analogies for Sun Country Airlines (SNCY):

• It's like Spirit Airlines or Frontier Airlines for Midwest leisure travelers heading to warm destinations.
• Imagine Spirit Airlines, but with a significant side business chartering planes for sports teams and hauling cargo for companies like Amazon.

• Scheduled Passenger Air Transportation: Providing pre-scheduled flights for individual travelers to various leisure and destination-oriented locations.
• Charter Services: Operating flights on a contractual basis for groups, businesses, or government entities, often for specific events or destinations.
• Cargo Services: Transporting freight and mail on its aircraft for various clients, leveraging available cargo space.

Major Customers of Sun Country Airlines (SNCY)

Based on its revenue segmentation, Sun Country Airlines (SNCY) primarily sells its scheduled flight services directly to individuals. While it also maintains significant business-to-business and business-to-government relationships through its robust charter and cargo operations (with customers such as Amazon.com, Inc. (AMZN) and the U.S. military), the largest portion of its revenue comes from individual passengers.

The up to three categories of individual customers that Sun Country Airlines serves are:

• Leisure and Vacation Travelers: This is the predominant demographic for Sun Country's scheduled flights. These customers, including individuals and families, are typically traveling for holidays, recreational trips, or visiting friends and relatives (VFR). They often seek direct flights to popular warm-weather destinations (e.g., Florida, Mexico, Caribbean) and other domestic leisure markets, particularly from the airline's Midwest hubs.
• Budget-Conscious Travelers: Customers who prioritize affordability when booking air travel for personal reasons. They are attracted to Sun Country's hybrid low-cost carrier model, which offers competitive base fares while allowing travelers to customize their experience with optional add-ons such as baggage, seat assignments, and in-flight services.

• The Boeing Company (BA)
• GE Aerospace (GE)
• Safran S. A. (SAF.PA)
• Sabre Corporation (SABR)

Jude Bricker, President & Chief Executive Officer

Jude Bricker has served as Chief Executive Officer of Sun Country Airlines since July 2017. He has over 20 years of experience in the aviation industry. Prior to joining Sun Country, Mr. Bricker was the Chief Operating Officer of Allegiant Travel Company from January 2016 to June 2017, and held various other leadership roles at Allegiant from 2006 to 2016. As COO of Allegiant, his responsibilities included marketing, network, operations, treasury, fleet, scheduling, pricing, ancillary products, digital, distribution, charters, loyalty, and investor relations. Mr. Bricker also served as an infantry officer with the United States Marine Corps from 1996 to 2002, and was a finance manager at American Airlines from July 2004 to May 2006. Under his leadership, the airline was positioned for a sale to Apollo Global Management in 2017, and he then led the transformation of the airline into a low-cost carrier, diversifying its business model, growing the fleet, and lowering costs. Sun Country Airlines is publicly traded on NASDAQ and has a fully independent Board of Directors.

D. Torque Zubeck, Senior Vice President and Chief Financial Officer

D. Torque Zubeck was appointed Senior Vice President and Chief Financial Officer of Sun Country Airlines, effective September 2, 2025. He brings more than 30 years of business experience, including over 20 years in airline leadership roles. Mr. Zubeck previously served as Chief Financial Officer of Mesa Airlines from 2021 to 2023. Before his time at Mesa, he held various roles at Alaska Airlines for 20 years, encompassing finance, audit, cargo operations, and commercial partnerships. Notably, he led the successful integration of Virgin America into Alaska Airlines. His experience also includes serving as CFO for two private companies in the Seattle region.

Rose Neale, Senior Vice President, Chief Legal Officer, and Corporate Secretary

Rose Neale serves as Senior Vice President, Chief Legal Officer, and Corporate Secretary at Sun Country Airlines. She is also the Vice Chair and Chair of the National Air Carriers Association and serves on the Board of Directors for Minnesota Make-a-Wish, where she chairs the Governance Committee. Ms. Neale holds a BA and a JD from the University of Arizona, and a Master of Laws in Taxation from New York University School of Law.

Eric Levenhagen, Chief Human Resources Officer and Senior Vice President of Flight Operations

Eric Levenhagen is the Chief Human Resources Officer and Senior Vice President of Flight Operations at Sun Country Airlines. He joined the company in 2016 as General Counsel. Prior to being named CHRO in 2022, he served as General Counsel and Chief Administrative Officer. Before joining Sun Country, Mr. Levenhagen was Assistant General Counsel at Landmark Aviation, an aviation services company. He also worked as a practicing corporate attorney and an adjunct professor of business law and ethics at Belhaven University. Earlier in his career, he held marketing and finance roles at several companies, including Northwest Airlines.

Brian Davis, Senior Vice President & Chief Marketing Officer

Brian Davis serves as the Senior Vice President & Chief Marketing Officer at Sun Country Airlines. In this role, he oversees the teams responsible for Brand, Customer Acquisition, eCommerce, Ancillary Revenue, Loyalty, and overall Customer Experience. Before joining Sun Country, Mr. Davis spent 12 years with Allegiant, where he held various leadership positions, including Vice President of Marketing & eCommerce.

Key Risks to Sun Country Airlines (SNCY)

1. Economic Sensitivity, Inflation, and Fuel Costs: The demand for airline services is highly susceptible to economic conditions, where a recession or economic downturn in the U.S. could diminish demand for services, impacting business and financial performance. Inflation presents a risk by elevating operational costs and potentially curbing demand for air travel. The price and availability of aircraft fuel are highly volatile and represent a significant operational risk, as unexpected increases or shortages could negatively affect operations.
2. Competition and Pressures on Scheduled Passenger Services: The airline industry is intensely competitive, with Sun Country Airlines facing rivalry from new entrants, low-cost carriers (LCCs), ultra-low-cost carriers (ULCCs), and legacy airlines, which could affect its market share and profitability. Specifically, the company has experienced pressure in its scheduled passenger services due to overcapacity in the domestic leisure market and competition from carriers like Spirit and Frontier, leading to pricing pressure and reduced scheduled passenger capacity. This has also been linked to management's execution issues regarding strategic shifts between scheduled passenger and cargo services.
3. Appreciation of the U.S. Dollar Impacting Lessee Obligations: An appreciation of the U.S. dollar poses a tangible business risk by potentially impairing the ability of Sun Country Airlines' lessees to meet their lease obligations. This risk is particularly acute for non-U.S. airlines whose revenues are predominantly in local currencies while their significant liabilities are in U.S. dollars. Should the dollar strengthen, lessees may face financial struggles, potentially leading to defaults on lease payments and resulting in revenue losses and a decline in net income for Sun Country Airlines.

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Sun Country Airlines (SNCY) operates a diversified business model encompassing three main services: scheduled passenger service focusing on leisure travel, charter services, and cargo operations.

Addressable Markets:

• Scheduled Passenger Service (Leisure Travel): Sun Country Airlines primarily focuses on leisure travelers within the United States, Mexico, Central America, and the Caribbean. While a specific market size exclusively for leisure air travel in the U.S. is not distinctly segmented in the provided data, the broader U.S. aviation market, which includes leisure travel, stands at an estimated USD 86.72 billion in 2025 and is projected to reach USD 105.00 billion by 2030. Leisure-oriented demand has surpassed pre-pandemic levels, indicating its significant and growing portion within this overall market.
• Charter Services: The addressable market for charter flights in the United States was valued at approximately USD 12.2 billion in 2024. Globally, the air charter services market was valued at USD 46.29 billion in 2023 and is projected to grow to USD 80.65 billion by 2032. North America held a significant share of this global market, accounting for 33.35% in 2023.
• Cargo Operations: Sun Country Airlines operates cargo flights primarily for Amazon Air. The U.S. Air Freight Transport Market is estimated to be USD 49.85 billion in 2025 and is expected to grow to USD 61.63 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.33%.

Sun Country Airlines (SNCY) is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and expansions across its diverse business model:

1. Continued Growth in Cargo Operations: Sun Country Airlines completed the expansion of its dedicated cargo fleet to 20 aircraft by the third quarter of 2025, operating under its contract with Amazon. This segment has shown significant revenue growth, with cargo revenue increasing by 50.9% in Q3 2025, marking the highest quarterly cargo revenue in the company's history. This expansion is expected to continue providing a stable and growing revenue stream.
2. Expansion of Charter Services: The airline's charter business has consistently performed strongly and is anticipated to continue its growth trajectory. In Q3 2025, charter revenue increased by 15.6% year-over-year, exceeding the 11.1% increase in charter block hours. This segment contributes to the company's diversified revenue and operational flexibility.
3. Resumption and Growth of Scheduled Passenger Service: After prioritizing cargo expansion in 2024 and 2025, Sun Country plans to rebuild and grow its scheduled passenger service starting later in 2026. The company anticipates adding back scheduled service capacity as it annualizes cargo growth. Owned aircraft currently on lease to other carriers are expected to be redelivered throughout 2025 and 2026, which will drive growth in the passenger segment.
4. Strategic Network Expansion and New Routes: Sun Country consistently seeks to expand its network by adding new leisure-focused routes. For instance, the airline rolled out 18 new nonstop winter routes in 2025, including destinations in Florida and the Cayman Islands, and extended its booking schedule through summer 2026. This focus on leisure and visiting friends and relatives (VFR) markets, particularly from its Minneapolis hub, aims to capture expanding travel demand.
5. Increased Passenger Fleet Capacity: Sun Country Airlines aims to increase its passenger fleet to 50 aircraft by mid-2027. This growth will be supported by the redelivery of five owned aircraft that are currently on lease to other airlines, with two expected in Q4 2025 and one in each of Q2, Q3, and Q4 2026. This increase in passenger aircraft will enable greater capacity for scheduled and charter services, contributing to future revenue.

Share Repurchases

• Sun Country Airlines completed a concurrent share repurchase of approximately $10 million in February 2025 as an affiliate of Apollo Global Management sold its remaining stake.
• In the first quarter of 2025, the board of directors approved a new $25 million share repurchase authorization.
• As of the third quarter of 2025, the company repurchased approximately 843,107 shares for $10 million, with about $15 million of repurchase authority remaining.

Share Issuance

• In February 2025, an affiliate of Apollo Global Management sold 6,346,105 shares of common stock in a secondary public offering, representing their entire remaining stake. Sun Country Airlines itself did not sell any shares or receive any proceeds from this offering.

Capital Expenditures

• Capital expenditures were $29.698 million for the three months ended March 31, 2024, including the acquisition of one aircraft.
• Capital expenditures for the three months ended March 31, 2023, totaled $104.978 million, primarily for the purchase of three aircraft held for operating lease and one spare engine.
• Sun Country Airlines maintains a strategy of opportunistic aircraft sourcing, focusing on owning mid-life Boeing 737 NGs with low capital commitments and no order book, and expects capital expenditures to be modest for the next several years.