Sun Country Reports Record Q2 Revenue, Profits Amid Cargo Growth

Sun Country Airlines reported a strong second quarter with record revenue of $263.6 million and net income of $6.6 million, beating analyst expectations and marking its 12th consecutive quarter of profitability. The airline's cargo segment was a major growth driver, with revenue increasing nearly 37% year-over-year due to expanded cargo block hours and partnerships such as with Amazon, while charter services also saw solid growth. Despite reducing passenger capacity by 6.2% to prioritize freight, ticket revenue per seat and average fares grew, demonstrating pricing power in its passenger operations. CEO Jude Bricker highlighted a favorable competitive environment at Minneapolis-St. Paul International Airport, with several low-cost carriers reducing their schedules, positioning Sun Country alongside Delta as a dominant player. Analysts have responded positively, upgrading ratings and raising price targets, reflecting optimism about Sun Country’s shift toward cargo growth amidst broader airline industry challenges. However, the stock price has been volatile, affected by overall market and industry concerns, although Sun Country’s forward earnings outlook remains strong.