Sun Country Airlines Holdings, Inc.

Q3 2025 total revenue was $255.5 million, up 2.4% versus Q3 2024 on a 3.8% increase in total block hours. GAAP EPS was $0.03 and adjusted EPS was $0.07. GAAP pretax margin was 8%, adjusted pretax margin was 2%, and management said adjusted pretax margin expanded year over year for a fourth consecutive quarter. Cargo revenue was $44 million, up 50.9% year over year, while charter revenue grew 15.6% and charter block hours increased 11.1%; scheduled service ASMs fell 10.2% year over year. For 4Q 2025, management guided to total revenue of $270 million to $280 million, block hours up 8% to 11%, fuel cost per gallon of $2.50, and operating margin of 5% to 8%.

Jude Bricker emphasized Sun Country’s diversified model, saying the company has posted 13 straight profitable quarters and can flex capacity between scheduled service, charter, and cargo. He highlighted the cargo build as largely complete, but said the main upside from here is restoring scheduled service in peak periods, with TRASM and bookings improving into 4Q and early 2026. His tone was confident and notably constructive on demand, saying he did not see meaningful competitive weakness or anything “worrisome” in current advances.

Torque Zubek said the cargo expansion is now complete with all 20 Amazon aircraft operating, and framed the company as being in a transition period toward annualizing cargo growth and rebuilding passenger capacity to 50 aircraft by mid-2027. He cited Q3 revenue of $255.5 million, GAAP EPS of $0.03, adjusted EPS of $0.07, and said Q3 operating expenses rose 3.6% on a 3.8% increase in block hours; CASM was up 10.3% and adjusted CASM up 5.2%, both affected by the 10.2% drop in scheduled-service ASMs. On the balance sheet, he noted a new $108 million term loan at 5.98%, total liquidity of $298.7 million, $10 million of Q3 buybacks, $20 million repurchased year to date, $29.1 million of CapEx year to date, expected 2025 CapEx of $80 million to $90 million, and net debt of $406.1 million versus $438.2 million at the start of the year.

Analysts focused on whether cargo growth changes seasonality, how strong 4Q and 1Q 2026 demand looks, labor and captain-upgrade constraints, maintenance cost timing, capital allocation, and whether weaker scheduled service capacity is inviting competitor backfill. Management said seasonality should remain strong in 1Q because cargo lets them “re-peak” the schedule, and Bricker said January is already sold to 35% loads and January sold PRASM is up about 25%. On costs, management said about $2.4 million of heavy maintenance originally expected in 2026 is being pulled into 4Q 2025, while labor efficiency should improve through PBS rostering and a new Cincinnati base supporting cargo; they also said captain upgrades remain a limiting factor for 2026-27 growth.