Sun Country Airlines Holdings, Inc. reported third‑quarter 2025 results with revenue of $255.5 million, GAAP diluted earnings per share of $0.03, and adjusted EPS of $0.07. Operating income reached $10 million, giving a GAAP operating margin of 3.9% and an adjusted margin of 4.8%. The company marked its thirteenth consecutive profitable quarter.
The quarter’s revenue was down 3.5% from the $264 million reported in Q2 2025, but the company’s adjusted EPS of $0.07 was below the $0.14 reported in Q2 2025 and the $0.06 reported in Q3 2024. Operating income fell from $16.3 million in Q2 2025 to $10 million in Q3 2025, reflecting higher labor and maintenance costs that rose 15.0% and 13.5% year‑over‑year, respectively.
Cargo operations expanded with a full fleet of 20 Boeing 737‑800 freighters for Amazon. Cargo revenue climbed to $44 million, up 50.9% year‑over‑year, driven by the expanded fleet and higher contract rates. Charter revenue increased to $58.7 million, up 15.6% year‑over‑year, while scheduled service revenue dipped 1% to $214.7 million. Scheduled service block hours fell 10.9% to accommodate the cargo expansion, but average fares rose 1.6% and load factors improved, indicating pricing power.
On the balance sheet, liquidity stood at $299 million and net debt was $406 million. The company completed $10 million in share repurchases during the quarter and entered into a $108 million term loan facility, drawing $54 million to repay a prior term loan and refinance five 737‑900ER aircraft.
Management indicated that the company will discuss fourth‑quarter guidance during its upcoming conference call, with revenue guidance for Q4 projected at $270 million to $280 million. The company plans to continue expanding its cargo fleet and to ramp up scheduled service capacity in 2026 to offset the short‑term unit‑cost pressure caused by the shift toward cargo operations.
As of September 30, 2025, Sun Country operated 45 passenger aircraft, 20 freighters, and 5 aircraft on lease to unaffiliated airlines. The completion of the cargo transformation marks a significant milestone, positioning the company with a more predictable, high‑margin revenue base and reducing reliance on the cyclical scheduled service segment.
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