Sun Country Airlines Reports Fourth Quarter and Full Year 2021 Results

Sun Country Airlines Holdings has just reported financial results for its fourth quarter and full year ended December 31, 2021.

“We closed out 2021 in a very strong way,” said Jude Bricker, Chief Executive Officer of Sun Country. “The fourth quarter delivered our 5th consecutive quarter of greater than 15% adjusted EBITDAR margins and a full year adjusted net profit of $20 million or $0.33 cents per share. We also ratified a new labor agreement with our pilots, offering highly competitive pay rates, benefits and work rules, allowing Sun Country to attract the pilots we need to support our future growth. Even including the new agreement, we expect our 2022 full year adjusted CASM to be lower than our adjusted CASM in 2019. The company is in a tremendous position, and we are excited to see it outperform in 2022 and beyond.”

For the quarter ended December 31, 2021, Sun Country reported a net loss of $0.6 million and income before income tax of $0.2 million, on $173 million of revenue. Adjusted income before income tax for the quarter was $8 million(1). GAAP operating income during the quarter was $11 million, producing an operating margin of 6%, while adjusted operating income was $15 million(1), resulting in an adjusted operating income margin of 9%(1).

“We are very pleased to have produced a 9% adjusted operating margin and adjusted earnings of $0.10 per diluted share in a challenging fourth quarter,” said Dave Davis, President and Chief Financial Officer of Sun Country. “Similar to other airlines, our operations were challenged by harsh weather conditions and staffing outages driven by the Omicron variant. In addition, we faced a technology issue that impacted us during the peak Christmas holiday travel period. Demand was modestly softer than expected in December, which we believe to have been due to the Omicron variant. Beginning in mid-January, we have seen a very strong rebound in bookings. Despite the challenges in the fourth quarter, we exceeded our earlier revenue and earnings expectations, and fourth quarter total revenue per available seat mile (total system TRASM(2)), which excludes cargo revenue, exceeded fourth quarter 2019 TRASM by 3.4%.”

Notable Highlights

CDB Aviation Delivers First of Two 737-800 Aircraft to New North American Customer Sun Country

CDB Aviation, a wholly-owned Irish subsidiary of China Development Bank Financial Leasing Co., Limited, delivered the first of two Boeing 737-800 aircraft to Sun Country, a Minnesota-based, hybrid low-cost airline.

“We’re delighted to have partnered with our colleagues at Sun Country on executing this transaction for two Boeing aircraft from our portfolio, which will facilitate the further build-out of the carrier’s highly-adaptable network structure,” said Luís da Silva, CDB Aviation’s Head of Commercial, Americas.

The aircraft are configured with 183 seats in a single economy-class layout and will be operated on seasonal, point-to-point routes. The second aircraft’s delivery is anticipated in early 2022.

“We are excited to commence a new and valued partnership with CDB Aviation. These two aircraft are key to meeting our near-term growth plans and reflect Sun Country's exceptional ability to grow its fleet with strategic partners throughout the world,” said Thomas Frey, Sun Country’s Director of Fleet and Fuel.

Peter Goodman, CDB Aviation’s Chief Marketing Officer, commented: “Sun Country’s unique model and distinct network proved exceptionally advantageous in navigating the pandemic’s headwinds and better positioning the carrier for air travel’s recovery. Our commercial team worked swiftly to provide the airline, which operates in a key focus market for our platform, with immediate access to additional aircraft capacity, supporting their network expansion.”

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Sun Country Airlines Reports Second Quarter 2021 Results

    The U.S. budget carrier, Sun Country Airlines has published its financial results for its second quarter ended June 30, 2021.

“We had a very strong second quarter driven by revenue outperformance in our scheduled passenger service business amid strong continued recovery in leisure travel demand,” said Jude Bricker, Chief Executive Officer of Sun Country. “Passenger revenue growth was driven by higher fares, strong ancillary sales and continued recovery in capacity.   When combined with our resilient Cargo business and steadily improving charter operation, we generated a second quarter profit after removing the benefit of the CARES Act grants, further demonstrating the strength of our unique, variable capacity business model.”

Second Quarter 2021 Highlights

Taken delivery of two additional aircraft

Announced continued expansion of the Company’s route network including service to eleven new airports: Milwaukee Mitchell International Airport (MKE), Palm Beach International (PBI), Owen Roberts International Airport in Grand Cayman (GCM), Providenciales International Airport in Turks and Caicos (PLS), St. Pete-Clearwater International Airport (PIE), Punta Gorda Airport (PGD), Asheville Regional Airport (AVL), Phoenix-Mesa Gateway Airport (AZA), Duluth International Airport (DLH), Green Bay Austin Straubel International Airport (GRB) and Rochester International Airport (RST)

Announced 20 new nonstop routes, our largest in company history, the majority will begin flying in the second half of 2021

Welcomed Tom Kennedy to the Board of Directors and as Chairman of the Audit Committee

Received $39.4 million grant from the CARES Act Payroll Support Program during the second quarter

Capacity

On a total available seat mile (“ASM”) basis, the Company saw total ASMs grow 5% versus the first quarter of 2021, which is down 17% versus the second quarter of 2019. Charter block hours also increased sequentially versus the first quarter of 2021, by 10%, and are 24% lower than they were in the same period of 2019. Cargo block hours were approximately flat versus the first quarter 2021 which was as expected. Comparisons to the second quarter 2020 are not meaningful as that was the first full quarter that was impacted by COVID-19.

Sun Country Airlines reports an operating income of $25 million in Q1

The low-cost carrier Sun Country Airlines has reported its financial results for its first quarter ended March 31, 2021 in the recent days, which showed the budget carrier scoring an operating revenue of $25 million. 

“We are pleased to be reporting our quarterly results for the first time as a public company following our successful IPO in March.  The IPO strengthened our balance sheet and better positions Sun Country for long-term profitable growth,” said Jude Bricker, Chief Executive Officer of Sun Country. “While we remain in an unpredictable environment, our business is continuing to recover from the impact of COVID-19 on industry demand.  I am encouraged by the recent improvement we are seeing in forward bookings.  Demand really picked up in mid-February, and that momentum continues.  As of today, our summer schedule is sold to a higher load factor as compared to the same time in 2019.  Our charter business is recovering quickly, and we are flying a full twelve aircraft schedule in our cargo business.”

First Quarter 2021 Highlights

Thomas C. Kennedy joins the board of Sun Country Airlines

Photo SIXT

The low-cost carrier Sun Country Airlines has confirmed the appointment of Thomas C. Kennedy to its board of directors. 

“I am pleased to welcome Thomas to our board of directors,” said Sun Country Airlines CEO Jude Bricker. “Thomas brings a unique background and important perspectives to our board with experience leading global consumer travel and hospitality businesses. We are excited to add another tremendous leader to partner with Sun Country as we continue to evolve as the leading hybrid low-cost air carrier.”

Kennedy currently serves as President and CFO of SIXT Rent a Car USA. Previously, Mr Kennedy served as Senior Executive Vice President and Chief Financial Officer of Hertz Global Holdings from 2013 to 2018. Prior to joining Hertz, Kennedy served as Executive Vice President and Chief Financial Officer of Hilton Worldwide Holdings from 2008 to 2013. Between 2003 and 2007, Kennedy served as Executive Vice President and Chief Financial Officer of Vanguard Car Rental, parent company of the National Car Rental and Alamo Rental Car brands. Prior to joining Vanguard, Kennedy served in a number of financial positions from 1992 to 2003 at Northwest Airlines, Inc., a global network airline.

Kennedy graduated from Tulane University, a summa cum laude and Phi Beta Kappa with a Bachelor of Arts degree majoring in Economics in 1987. Kennedy received his Master of Business Administration degree from Harvard University in 1992.

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Sun Country pays off government loan

The U.S. hybrid low-cost air carrier Sun Country Airlines Holdings has announced the repayment of a U.S. Treasury loan it received through the CARES Act. The carrier serves the leisure market as well as offering passenger and cargo charter flights.  

“We appreciate the support from the U.S. Government which helped provide stability for our customers and our employees during the pandemic,” said Sun Country Airlines President and CFO Dave Davis, “And we are pleased to be in a position to repay this loan so quickly.”

Through the 2020 CARES Act legislation, U.S. airlines were given access to loans through the U.S. Treasury Department. Sun Country Airlines applied for and received a $45 million loan through this program in October 2020. Sun Country has repaid $46.3 million, which includes all outstanding principal and accrued interest on the loan, to the U.S. Treasury Department.

Sun Country Airlines Based in Minnesota, closed its initial public offering on March 19, 2021. Proceeds from that offering were used to repay the loan.

 

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New Cincinnati - Minneapolis/St. Paul link for Sun Country Airlines

The newest airline to serve Cincinnati/Northern Kentucky International Airport (CVG) is Sun Country Airlines with nonstop service between Cincinnati (CVG) and Minneapolis/St. Paul (MSP) beginning May 14, 2021. The service will operate twice a week on Fridays and Sundays. One-way fares are as low as $39 and can be found at suncountry.com.

We’re excited to bring our commitment to great customer service and affordability to Cincinnati,” said Jude Bricker, chief executive officer, Sun Country Airlines. “We have no doubt that CVG passengers will enjoy our Midwest hospitality, comfortable amenities such as free streaming in-flight entertainment and reclining seats, all at ultra-low fares.”

Sun Country Airlines is a low-cost airline offering an aircraft configuration of 186 seats with two seat options with different amenities. The airline offers an onboard experience for all guests that includes free in-flight entertainment, as well as in-seat power at every seat on most aircraft. Travelers can also expect a complimentary soft drink service on every flight.

“We’re thrilled to welcome Sun Country as the newest airline to serve CVG,” said Candace McGraw, chief executive officer, CVG. “Sun Country’s low-cost, nonstop service to Minneapolis paired with its cargo partnership with Amazon offers strong alignment with CVG and will benefit both the local traveler and our regional economy.”

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Sun Country Airlines to start new service between Portland and Los Cabos this December

Sun Country Airlines, the privately held company based in the Twin Cities of Minneapolis/St. Paul has confirmed it will be starting a new service between Portland and Los Cabos this December. 

The budget carrier will operate the route twice a week on a seasonal basis and is part of the firms growth plans which continue at a rapid pace. Since 2018, Sun Country has added more than 3 nonstop routes and nine new cities to its network. In addition to new routes, the exteriors of their aircraft have a new modern design and the interiors have all new seats. Those new seats have three different seating options and most seats have in-seat power. Inflight entertainment, consisting of movies, TV shows, and music, is also available – and complimentary – through a secure onboard AirFi wireless entertainment system. Unlike most domestic US carriers, non-alcoholic beverages are still complimentary. 

The airline currently offers scheduled passenger service on more than 85 routes to more than 50 popular destinations in the U.S., Mexico, Central America, and the Caribbean, many of which are served seasonally to match peak leisure travel demand.

Massive route expansion for Sun Country

Sun Country 737            Photo Sun Country Airlines

It has been tipped as the biggest route network expansion in the history of Sun Country Airlines!  This week the budget carrier announced its plans to launch 19 new seasonal nonstop routes and seven new airports. 

The network expansion includes eight new nonstop routes for the airline’s home base of Minneapolis-St. Paul International Airport (MSP) and eight new nonstop routes in recently expanded markets Nashville, Tennessee, Dallas Fort Worth and Portland, Oregon. The airline will also expand nonstop destinations from Las Vegas, and welcome San Antonio and Providence, Rhode Island to its growing network.

“Today is a very exciting day in the history of Sun Country as we make this tremendous step forward in growing our airline,” said Sun Country Airlines CEO Jude Bricker. “This network expansion allows us to provide even more destination options to our community, create new jobs in the Twin Cities market and further our reach across the country. We look forward to bringing our mission of offering leisure travellers safe, reliable service at a great price to more people and places.”

Sun Country pilot arrested for carrying a concealed gun in Florida without a licence.

Brian Andrew Machtemes
arrest photo

Brian Andrew Machtemes a 54-year-old pilot for Sun Country Airlines has been arrested at Southwest Florida International Airport, Fort Myers, Florida on Friday night for carrying a loaded gun in his flight bag.

The local police reported that the pilot was arrested after a Transportation Security Administration agent found the gun in a front pocket of his flight bag. The officer found a KEL-TEC .380 pistol in a material zip up pouch on the front of the bag. Local media reports that the gun was loaded with six rounds. 

The arrest report indicates that states that Brian Andrew Machtemes has a licence or permit to carry a weapon in Minnesota, but such a permit is not valid in Florida. TSA regulations state that while passengers are allowed to carry guns on US flights, they must be placed unloaded in locked boxes in checked luggage only, it is believed the same regulations apply to pilots and aircrew. It is also reported that Machtemes declined to answer any questions.

The flight had to be rescheduled for Saturday because Sun County didn't have any standby crews at the Southwest Florida Airport that could have completed the flight.

Sun Country Airlines that is transitioning its self away from being a well respected full-service hometown airline of Minnesota to a low rate ultra-low-cost-carrier confirmed that one of its pilots had been arrested, saying "We’re aware of the situation involving one of our pilots at the Fort Myers Airport and are in contact with local law enforcement. We are in the process of gathering information on what occurred.". Passengers were put up in hotels and given meal and drinks vouchers. 

Sun Country to head to Belize and St Kitts & Nevis

The new ultra-low-cost-carrier Sun Country Airlines has announced two new destinations to be introduced to its route network.

The airline will offer new services to Belize and St. Kitts & Nevis – from its home base of Minneapolis/St. Paul.   “At Sun Country, we pride ourselves on delivering fantastic value to our guests, connecting them to their favourite people, places and memories. Belize and St. Kitts and Nevis are amazing beach destinations that we have no doubt Minnesotans will be excited to flock to in the winter,” said Ben Brookman, the vice president, network and pricing of Sun Country Airlines. “We are pleased to be the first airline to offer scheduled nonstop service from MSP to these two great destinations, and look forward to offering Minnesotans affordable nonstop service to even more vacation hot spots.”

New routes from Nashville for Sun Country

The ultra-low-cost airline Sun Country Airlines is continuing its programme of expansion with six new nonstop routes from Nashville.

The Minnesota-based Sun Country will offer nonstop flights from Nashville International Airport to Fort Myers, Miami, Orlando, Tampa, New Orleans and Minneapolis and the carrier is offering introductory fares as low as $49 one way. 

“Nashville is a popular destination for travellers in the Twin Cities, and we are excited to offer them an affordable, nonstop option,” said Jude Bricker, President and CEO of Sun Country Airlines, “The new service in Nashville is part of our continued effort to grow as a brand, which will allow us to invest in our employees and community here in Minnesota.”

Sun Country Airlines to reinvent itself as a ultra-low-cost-carrier

Sun Country Airlines have recently announced plans to refurbish the cabins on the Boeing 737 fleet the carrier currently operates, which sounds good, however from plans reported in The Minneapolis Star-Tribune its bad news for passengers.

The US Midwest carrier will be removing its first class seats and replacing them with a premium economy section. The airline is planning to maximise revenue at the expense of passenger comfort, by reducing seat pitch throughout the cabin in a staggered configuration. According to the reports, the premium economy will have a pitch of 34 inches and then a reduction from 32 to 29 inches in the regular economy section. Those seats with the least leg room will be at the back of the aircraft, for the cheapest fares.

The move is the result of an internal review by the airlines' new CEO, which will see the once popular and well-respected carrier reinvent itself as an ultra-low-cost carrier. The new CEO was formerly head of another ultra-low-cost-carrier, Allegiant Airlines, believes the perks of USB and power outlets in each row of seats will make up for the cramped conditions.  

Sun Country Airlines cuts staff numbers by 20%

Sun Country Airlines is cutting 350 workers from its ground service operations at Minneapolis-St. Paul International Airport.
The Eagan-based company told employees Tuesday it will contract those jobs out to Global Aviation Services Inc.
Executives say the move will make Sun County more efficient. Layoffs begin immediately, with workers able to reapply for positions with Global Aviation as soon as Wednesday.
local media says affected workers include nonunion positions inside the terminal, such as ticket counter agents, skycaps and those who provide wheelchair services.
The decision will trim nearly 20 percent of Sun Country’s workforce of about 1,830.
In December, Sun Country was purchased for an undisclosed sum by New York-based Apollo Global Management.
Sun Country serves 41 airports in the U.S., Mexico, the Caribbean and Costa Rica.

Sun Country Airlines Announces Two New Destinations −Honolulu, Hawaii, And Myrtle Beach, South Carolina

 Sun Country Airlines announced on Wednesday seasonal service to new destinations Honolulu, Hawaii (HNL), and Myrtle Beach, South Carolina (MYR). The new flight segments offer Sun Country customers access to these popular beach destinations, expanding Minnesota's Hometown Airline™ network to 43 domestic and international destinations.

Seasonal flights to Honolulu will be offered May 19 through August 19, 2018, via Minneapolis/St. Paul International Airport, Terminal 2, and Los Angeles International Airport (LAX). Passengers departing from Minneapolis will have a short stop in Los Angeles before continuing to Honolulu. The new service will fly four times a week, Friday through Monday.

Honolulu provides Midwest- and Los Angeles-based travellers a getaway to a tropical paradise, complete with stunning beaches such as Waikiki, historic landmarks and fine dining.