Sun Country Airlines Files 2024 10-K

Ticker: SNCY · Form: 10-K · Filed: Feb 12, 2025 · CIK: 1743907

Sentiment: neutral

Topics: 10-K, annual-report, airline

TL;DR

SNYC 2024 10-K is in. Full year financials out.

AI Summary

Sun Country Airlines Holdings, Inc. filed its 2024 10-K on February 12, 2025, detailing its financial performance for the fiscal year ending December 31, 2024. The company, headquartered in Minneapolis, MN, operates in scheduled air transportation. Key financial data and operational details for the period are presented in this filing.

Why It Matters

This filing provides investors and analysts with a comprehensive overview of Sun Country Airlines' financial health, operational performance, and strategic outlook for the past fiscal year.

Risk Assessment

Risk Level: medium — As an airline, Sun Country Airlines is subject to industry-specific risks including fuel price volatility, regulatory changes, and economic downturns.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of Sun Country Airlines Holdings, Inc. as described in the filing?

The filing identifies Sun Country Airlines Holdings, Inc. under the Standard Industrial Classification code for AIR TRANSPORTATION, SCHEDULED [4512].

When did Sun Country Airlines Holdings, Inc. file its 10-K report?

Sun Country Airlines Holdings, Inc. filed its 10-K report on February 12, 2025.

What fiscal year does this 10-K report cover?

This 10-K report covers the fiscal year ending December 31, 2024.

Where is Sun Country Airlines Holdings, Inc. headquartered?

The company's business and mail address is listed as 2005 Cargo Road, Minneapolis, MN 55450.

What was the previous name of Sun Country Airlines Holdings, Inc.?

The former company name was SCA Acquisition Holdings, LLC, with a date of name change on June 18, 2018.

Filing Stats: 4,497 words · 18 min read · ~15 pages · Grade level 11.6 · Accepted 2025-02-12 17:25:56

Key Financial Figures

Filing Documents

Business

Business 9 Item 1A.

Risk Factors

Risk Factors 22 Item 1B. Unresolved Staff Comments 46 Item 1C. Cybersecurity 46 Item 2.

Properties

Properties 48 Item 3.

Legal Proceedings

Legal Proceedings 49 Item 4. Mine Safety Disclosures 49 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 49 Item 6. [Reserved] 51 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 51 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 69 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 71 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 114 Item 9A.

Controls and Procedures

Controls and Procedures 114 Item 9B. Other Information 115 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 115 PART III Item 10. Directors, Executive Officers and Corporate Governance 115 Item 11.

Executive Compensation

Executive Compensation 115 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 115 Item 13. Certain Relationships and Related Transactions and Director Independence 115 Item 14. Principal Accountant Fees and Services 115 PART IV Item 15. Exhibits and Financial Statement Schedules 116 Item 16. Form 10-K Summary 122

Signatures

Signatures 123 2 Table of Content 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 Global Management, Inc. and its subsidiaries (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. "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. "Apollo" means Apollo Global Management, Inc. and its subsidiaries. "SCA Horus 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. "ASU" means accounting standard update. "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. and Amazon. "A&R ATSA" means the Amended and Restated Air Transportation Services Agreement, dat

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 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 opportuniti

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