SNCY | Market Cap: $876.4M (05/13/26)
Industry:
Transportation

DESCRIPTION

Sun Country Airlines is a leisure-focused, low-cost carrier based in Minneapolis-St. Paul (MSP). Rather than maintaining a consistent year-round schedule, Sun Country concentrates flying during peak demand periods — heavy winter flying to Florida, Mexico, and the Caribbean, and select summer flying to major cities and vacation destinations. The airline operates a single-family fleet of owned, mid-life Boeing 737-NG aircraft, which keeps ownership costs low and lets Sun Country park aircraft profitably during off-peak periods. Sun Country operates through three complementary businesses: scheduled passenger service, charter, and cargo. Scheduled service generates ticket revenue plus ancillary fees (baggage, seat selection, priority boarding). Charter serves the DoD, sports teams, and casinos, with roughly 72% of charter flying under long-term contracts that include fuel pass-throughs. Cargo operates 20 Boeing 737-800 freighters for Amazon under a CMI agreement — Amazon supplies the planes and pays for fuel, while Sun Country provides crews, maintenance, and insurance — insulating Sun Country's cargo margins from fuel and volume swings. A key structural feature is cross-utilization: pilots and aircraft rotate across all three businesses, filling low-demand periods with charter or cargo flying and redirecting capacity to scheduled service during peak leisure demand. Sun Country sells roughly 80% of tickets directly through its website and app. In January 2026, Allegiant Travel agreed to acquire Sun Country, with the deal expected to close in the second half of 2026.

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