Sun Country Airlines Holdings, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Sun Country Airlines Holdings, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and operational status.</b>

AI Summary

Sun Country Airlines Holdings, Inc. (SNCY) filed a Annual Report (10-K) with the SEC on February 14, 2024. Sun Country Airlines Holdings, Inc. filed its 2023 Form 10-K on February 14, 2024. The filing covers the fiscal year ending December 31, 2023. The company is engaged in Air Transportation, Scheduled (SIC 4512). The principal business address is 2005 Cargo Road, Minneapolis, MN 55450. The company was formerly known as SCA Acquisition Holdings, LLC.

Why It Matters

For investors and stakeholders tracking Sun Country Airlines Holdings, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Sun Country Airlines' financial health, operational activities, and strategic direction for the fiscal year 2023, which is crucial for investors to assess the company's performance and future prospects. As a public document, this filing offers transparency into the company's assets, liabilities, revenues, and risks, enabling stakeholders to make informed investment decisions and understand the competitive landscape of the airline industry.

Risk Assessment

Risk Level: medium — Sun Country Airlines Holdings, Inc. shows moderate risk based on this filing. The airline industry is highly sensitive to economic downturns, fuel price volatility, and regulatory changes, which can significantly impact Sun Country Airlines' financial performance and operational stability.

Analyst Insight

Investors should analyze Sun Country Airlines' revenue streams, cost structure, and debt levels detailed in the 10-K to evaluate its resilience and growth potential in the dynamic airline market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period covered by the report)
• 2024-02-14 — Filing Date (Date the 10-K was filed)
• 4512 — SIC Code (Standard Industrial Classification for Air Transportation, Scheduled)

Key Players & Entities

• Sun Country Airlines Holdings, Inc. (company) — Filer name
• SCA Acquisition Holdings, LLC (company) — Former company name
• 2005 Cargo Road, Minneapolis, MN 55450 (address) — Business and mailing address
• 651-681-3900 (phone) — Business phone number

FAQ

Risk Factors

• Industry Competition [medium — market]: The airline industry is highly competitive, with numerous carriers vying for market share, which could adversely affect pricing and profitability.
• Fuel Price Volatility [medium — financial]: Fluctuations in fuel prices can significantly impact operating costs and profitability due to the airline's reliance on jet fuel.
• Government Regulations [medium — regulatory]: The airline industry is subject to extensive government regulation, including safety, environmental, and operational standards, which can increase compliance costs.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-14: 10-K Filing Date — Date Sun Country Airlines Holdings, Inc. submitted its annual report.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share SNCY The Nasdaq Stock Market
• $176.30 — 2022, our total fare was approximately $176.30 and $175.29, respectively. We provide
• $175 — otal fare was approximately $176.30 and $175.29, respectively. We provide low-fare
• $66.69 — revenue per passenger was approximately $66.69 and $53.49, respectively. We also earn
• $53 — passenger was approximately $66.69 and $53.49, respectively. We also earn revenue

Filing Documents

• sncy-20231231.htm (10-K) — 2724KB
• sncy-20231231xex414.htm (EX-4.14) — 55KB
• sncy-20231231xex1043.htm (EX-10.43) — 48KB
• ex1044suncountry-roseneale.htm (EX-10.44) — 49KB
• ex1049suncountry-ericleven.htm (EX-10.49) — 50KB
• ex1050suncountry-grantwhit.htm (EX-10.50) — 49KB
• sncy-20231231xex231.htm (EX-23.1) — 2KB
• sncy-20231231xex311.htm (EX-31.1) — 10KB
• sncy-20231231xex312.htm (EX-31.2) — 10KB
• sncy-20231231xex32.htm (EX-32) — 6KB
• ex97clawbackpolicy.htm (EX-97) — 28KB
• sncy-20231231_g1.jpg (GRAPHIC) — 6KB
• sncy-20231231_g2.jpg (GRAPHIC) — 59KB
• sncy-20231231_g3.jpg (GRAPHIC) — 49KB
• sncy-20231231_g4.jpg (GRAPHIC) — 1256KB
• sncy-20231231_g5.jpg (GRAPHIC) — 83KB
• sncy-20231231_g6.jpg (GRAPHIC) — 95KB
• 0001743907-24-000005.txt (&nbsp;) — 18206KB
• sncy-20231231.xsd (EX-101.SCH) — 101KB
• sncy-20231231_cal.xml (EX-101.CAL) — 156KB
• sncy-20231231_def.xml (EX-101.DEF) — 545KB
• sncy-20231231_lab.xml (EX-101.LAB) — 1179KB
• sncy-20231231_pre.xml (EX-101.PRE) — 830KB
• sncy-20231231_htm.xml (XML) — 2055KB

Business

Business 10 Item 1A.

Risk Factors

Risk Factors 23 Item 1B. Unresolved Staff Comments 56 Item 1C. Cybersecurity 56 Item 2.

Properties

Properties 57 Item 3.

Legal Proceedings

Legal Proceedings 59 Item 4. Mine Safety Disclosures 59 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 59 Item 6. [Reserved] 61 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 61 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 81 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 83 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 127 Item 9A.

Controls and Procedures

Controls and Procedures 127 Item 9B. Other Information 129 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 130 PART III Item 10. Directors, Executive Officers and Corporate Governance 130 Item 11.

Executive Compensation

Executive Compensation 130 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 130 Item 13. Certain Relationships and Related Transactions and Director Independence 130 Item 14. Principal Accountant Fees and Services 130 PART IV Item 15. Exhibits and Financial Statement Schedules 131 Item 16. Form 10-K Summary 136

Signatures

Signatures 137 2 Table of Contents GLOSSARY OF TERMS Set forth below is a glossary of certain terms used in this annual report on Form 10-K (this "Annual Report"): "Acquisition Date" means April 11, 2018, the date that certain investment funds managed by affiliates of Apollo (the "Apollo Funds") acquired Sun Country, Inc. "Adjusted CASM" means CASM excluding fuel costs, non-cash management stock compensation expense, costs arising from our Cargo operations, depreciation and amortization recognized on certain assets that generate lease income, certain commissions, and other costs of selling our vacations product. When Adjusted CASM is referenced or presented for other airlines, it has been adjusted to our average stage length for the period presented. "Aircraft miles" means miles flown by all of our aircraft, measured by summing up the miles for each completed flight segment. "Air traffic liability" means the value of tickets sold in advance of travel. "ALPA" means the Air Line Pilots Association, the union representing our pilots. "Amazon" means Amazon.com Services, LLC, together with its affiliates. "AMFA" means Aircraft Mechanics Fraternal Organization, the union representing our technicians and related craft employees. "Ancillary revenue" consists primarily of revenue generated from air travel-related services such as baggage fees, seat selection and upgrade fees, priority check-in and boarding fees, other fees and on-board sales. "Ancillary services" refers to the services that generate ancillary revenue. "APIC" means Additional Paid-in Capital. "Apollo" means Apollo Global Management, Inc. and its subsidiaries. "Apollo Stockholder" means SCA Horus Holdings, LLC, which is an affiliate of certain investment funds managed by affiliates of Apollo. "ASAP" means Aviation Safety Action Program. "ATSA" means the Air Transportation Services Agreement, dated as of December 13, 2019, as amended as of June 30, 2020, by and between Sun Country, Inc. an

BUSINESS

ITEM 1. BUSINESS Overview Sun Country Airlines is a new breed of hybrid low-cost air carrier that dynamically deploys shared resources across our synergistic Scheduled Service, Charter, and Cargo businesses. By doing so, we are able to generate high growth, high margins and strong cash flows with greater resilience than other passenger airlines. Based in Minnesota, we focus on serving leisure and VFR passengers, charter customers, and providing CMI service to Amazon, with flights throughout the United States and to destinations in Canada, Mexico, Central America and the Caribbean. We share resources, such as flight crews, across our Scheduled Service, Charter and Cargo business lines with the objective of generating high returns and margins and mitigating the seasonality of our route network. We optimize capacity using an agile peak demand scheduling strategy which aims to shift flying to markets during periods of peak demand and away from markets during periods of low demand. This allows us to produce higher unit revenue with a competitive low-cost structure, in line with other ULCCs, resulting in best-in-class unit profitability, while also providing greater resiliency to economic or industry downturns. This strategy has been implemented and executed by an experienced management team with deep knowledge of the industry. We flex our capacity by day of the week, time of year and line of business to capture what we believe are the most profitable, peak demand, flying opportunities available from both our MSP home market and our network of non-MSP markets. In addition to these network shifts, we also shift aircraft between our Scheduled Service and Charter businesses to maximize the return on our assets. We regularly schedule our fleet using what we refer to as "Power Patterns", which involves scheduling aircraft and crew on trips that combine Scheduled Service and Charter legs, dynamically replacing what would be lower margin Scheduled Service flights with Charter

View Full Filing

View this 10-K filing on SEC EDGAR