Budget airline Sun Country's Q3 operating revenue misses expectations

Sun Country Airlines Holdings

29/10/2025 20:54

Overview

Sun Country Q3 revenue of $255.5 mln misses analyst expectations

Adjusted EPS for Q3 misses consensus, reflecting operational challenges

Company reports thirteenth consecutive profitable quarter, marking operational milestones

Outlook

Sun Country expects Q4 2025 revenue between $270 mln and $280 mln

Operating income margin for Q4 2025 projected at 5% to 8%

Result Drivers

CARGO EXPANSION - Completion of cargo segment transformation with full deployment of 20 freighter aircraft for Amazon, contributing to a 50.9% increase in cargo revenue

CHARTER GROWTH - Charter revenue increased 15.6% year-over-year, exceeding the increase in charter block hours

SCHEDULED SERVICE DEMAND - Scheduled service showed strong momentum with fare growth and improved load factors in August and September

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Operating Revenue
Miss
$255.50 mln
$255.90 mln (6 Analysts)
Q3 Adjusted EPS
Miss
$0.07
$0.10 (7 Analysts)
Q3 Adjusted Net Income
Miss
$3.70 mln
$4.88 mln (4 Analysts)
Q3 Net Income
$1.60 mln
Q3 Adjusted Operating Income
Miss
$12.40 mln
$15 mln (6 Analysts)
Q3 Operating Income
$9.90 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the airlines peer group is "buy"

Wall Street's median 12-month price target for Sun Country Airlines Holdings Inc is $15.50, about 29.5% above its October 28 closing price of $10.93

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nGNX8tMSnY

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)