NASDAQ$SNCY

Sun Country Airlines Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Sun Country Airlines had a historically strong second quarter with revenue up and EPS of $0.35 reported.

Sun Country Airlines reported a strong second quarter with a 19.2% increase in total revenue compared to the previous year. The company achieved a GAAP operating margin of 13.6% and an adjusted operating margin of 15.3%. Revenue growth was seen across scheduled service, charter, and cargo businesses.

  • Total revenue was up by 19.2% versus the second quarter 2022.
  • GAAP operating margin of 13.6% and an adjusted operating margin of 15.3% were achieved.
  • Total average fare increased 2.7% and load factor was up by 2 percentage points versus the second quarter of 2022.
  • Board of directors authorized an additional $30 million for repurchases of Sun Country shares.

Headline financials

Total Revenue

$261M

Previous: $219M+19.2%
EPS (adj)

$0.40

Previous: -$0.03+1433.3%
Adjusted CASM

$7.88

No prior period
Total Revenue Per ASM

$12.93

No prior period
Fuel Cost Per Gallon

$2.71

Previous: $4.39-38.3%
Capital Expenditures

-$192M

Previous: -$138M-39.7%
Free Cash Flow

-$172M

Previous: -$142M-21.3%
Net Income

$20.6M

Previous: -$3.92M+625.7%
Operating Income

$35.6M

Previous: $3.37M+956.3%
Gross Profit

-$66.1M

Previous: -$88.7M+25.4%
Cash & Equivalents

$86.9M

Previous: $213M-59.2%
Total Assets

$1.63B

Previous: $1.51B+8.5%

Revenue & EPS history

Sun Country Airlines · Revenue · Quarterly

$261M

Q2 2023+19.2%vs Q2 2022
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Sun Country Airlines · $261M total across 5 segments · Q2 2023

  • Scheduled Service
    $111M+2.8%
  • Ancillary
    $66.8M+51.1%
  • Charter Service
    $49.6M+16.1%
  • Cargo
    $25M+18.1%
  • Other
    $8.2M+226.2%

Forward guidance

Sun Country Airlines provided guidance for the third quarter of 2023, including total revenue between $240 million and $250 million, economic fuel cost per gallon of $2.90, and an operating income margin between 6% and 11%.

Tailwinds

  • Total revenue between $240 million and $250 million (8% to 13% increase vs Q3 2022)
  • Economic fuel cost per gallon of $2.90 (26% decrease)
  • Total system block hours between 34,500 and 35,500 (13% to 16% increase)

Headwinds

  • Operating income margin between 6% and 11% (1 to 4 percentage point decrease)
  • Effective tax rate of 23%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.5%

Avg return

Earnings day

-0.2%

Avg return

5 days after

-1.7%

Avg return

30 days after

65%

17 / 26 earnings

Positive

+13.3%

Q3 2022

Best reaction

-22.0%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.4%+6.8%
Q4 2025+12.6%+7.6%-16.3%
Q3 2025+6.5%+12.4%+29.1%
Q2 2025-11.0%-8.9%+14.3%
Q1 2025+0.3%+14.7%+18.2%
Q4 2024-0.9%+8.3%-8.0%
Q3 2024+11.7%+14.6%+14.4%
Q2 2024-15.8%-18.0%-16.2%
Q1 2024-19.3%-18.1%-25.3%
Q4 2023+6.3%+1.0%+8.8%
Q3 2023-3.6%-2.9%+32.3%
Q2 2023-22.0%-24.8%-29.1%
Q1 2023+8.1%-2.6%+0.7%
Q4 2022+12.5%+13.1%+8.3%
Q3 2022+13.3%+16.3%+24.1%
Q2 2022-10.9%-4.9%+0.4%
Q1 2022-11.5%-15.8%-26.2%
Q4 2021+4.2%+8.6%-7.9%
Q3 2020+1.0%+8.2%-15.6%
Q3 2021+1.0%+8.2%-15.6%
Q2 2020+0.4%-4.8%-4.3%
Q2 2021+0.4%-4.8%-4.3%
Q1 2020+1.9%-5.9%-6.5%
Q4 2020+1.9%-5.9%-6.5%
Q4 2019+1.9%-5.9%-6.5%
Q1 2021-4.5%-2.0%-3.5%
Q1 2019
Q1 2018

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