Sun Country Airlines Holdings, Inc. · NASDAQ:SNCY
Sun Country Airlines — Investor Presentation (March 2025)
24 slides from Sun Country Airlines's investor presentation, March 2025
Slide 1: Investor Presentation March 2025
Investor Presentation March 2025
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the Company for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by the presenter or the Company or any director, employee, ag
Slide 3: Business Overview
Business Overview suncountry airlines
Slide 4: Unique Business Model With Diversified Revenue Streams
Unique Business Model With Diversified Revenue Streams Passenger Segment – FY 2024 Revenue Cargo Segment – FY 2024 Revenue Scheduled Service: $717m Low cost, leisure-focused carrier Cargo: $107m Flexible scheduling model capturing peak demand Expect to operate 20 737-800 freighters for Amazon by end
Slide 5: Business Model Has Facilitated Rapid, Measured Growth
Business Model Has Facilitated Rapid, Measured Growth… Revenue Has Nearly Doubled Since Implementation of New Model (Revenue, $mm) $1,076 $1,050 $894 $701 $623 $582 $401 2018 2019 2020 2021 2022 2023 2024 Financial performance has demonstrated the growth and resilience inherent in our business model
Slide 6: And Among The Industry's Best Margins
…And Among The Industry’s Best Margins Sun Country Pre-tax Margin vs Industry 20% #1 out of 11 15% Max of other airlines public U.S. carriers 10% Min of other 10.0% 9.9% airlines 5% 7.1% 3.2% 3.8% 3.7% 0% #11 out of 11 -5% now public U.S. carriers -10% -15% -20% -25% -30% 2018 2019 2020 2021 2022 20
Slide 7: Increasingly Diversified Revenue Streams
Increasingly Diversified Revenue Streams… % of Annual Revenue 2019 2024 2026E 11% 20% 25% 19% 18% 62% 70% 75% Cargo Charter Scheduled Service Mix of non-scheduled service revenue has been increasing Excludes other revenue such as leasing income There can be no assurance that projections or estimates
Slide 8: Have Contributed to More Stable Profitability
…Have Contributed to More Stable Profitability # of Consecutive Profitable Quarters 11 10 3 3 3 3 1 1 0 8
Slide 9: Scheduled Service Route Network Highly Variable
Scheduled Service Route Network Highly Variable Operate 116 routes serving 102 airports Only 2% of our total scheduled service routes are daily, year-round routes 9
Slide 10: Agile Passenger Capacity Built To Capture Peak Demand
Agile Passenger Capacity Built To Capture Peak Demand Seasonal Demand Dictates Monthly Schedule Monthly Seats as % of March 2025 130% 120% 110% 100% 90% 80% 70% 60% 108% more seats in 50% March than September 40% Apr-24 Jun-24 Aug-24 Oct-24 Dec-24 Feb-25 ULCC SAVE SNCY Dynamic reallocation of capaci
Slide 11: Sun Country Has Been Growing Its Share at MSP
Sun Country Has Been Growing Its Share at MSP Cumulative Change in MSP Point-of-Origin Passenger Share Since 2018(1)(2) Current Share 10% 9% 9% 21% 8% 7% 6% 6% 6% 4% 3% 2% 2% 2% (0%) (0%) (0%) 0% 59% -2% (1%) (2%) -4% (5%) -6% -8% (7%) 20% (8%) -10% (9%) (9%) 2018 2019 2020 2021 2022 2023 Q3 2024 SN
Slide 12: Integrated, Leading Charter Business
Integrated, Leading Charter Business • Charter business uses the same aircraft and flight crew as scheduled service and integrated scheduling drives efficiencies • NCAA and professional sports, casino, VIP, US military • In 2024, 74% contracted revenue under long-term agreements versus 47% in 2019 C
Slide 13: Schedule Integration Drives Profitability
Schedule Integration Drives Profitability Integrated Scheduling Example Contribution Margin of Example Customer ~20% margin Charter Flights: FLL-CLT, CLT-FLL Added Scheduled Service Flights: MSP-FLL, CLT-MSP, MSP-CLT, FLL-MSP (combined LF 86%) ~5% margin Stand-alone charter carrier Sun Country 13
Slide 14: 2025 Focus On Integrating New Amazon Aircraft
2025 Focus On Integrating New Amazon Aircraft More Aircraft Revised Agreement • 8 incremental B737-800 freighters added • Agreement extended to 2030 with to Sun Country fleet, bringing total potential further extension to 2037 freighter fleet to 20 aircraft • Revised economics reflect reality of • M
Slide 15: Passenger Segment To Marginally Shrink in 2025 Before Growing Again in 2026
Passenger Segment To Marginally Shrink in 2025 Before Growing Again in 2026 YoY Change in Block Hours by Segment Passenger Segment Block Hours - YoY Cargo Segment Block Hours - YoY 10.0% ~9% 90.0% ~80% 8.0% 80.0% ~75% 6.0% 70.0% 4.0% 60.0% ~50% 2.0% 50.0% 0.0% ~40% 40.0% -2.0% ~(2%) 30.0% -4.0% -6.0
Slide 16: Operating Fleet Growth With Low Capital Outlays
Operating Fleet Growth With Low Capital Outlays Total Aircraft – End of Year Opportunistic Aircraft Sourcing (# of aircraft) • Acquire aircraft based on demand needs 71 71 – no order book • Focus on owning mid-life Boeing 737 63 NGs with low capital commitments 20 20 12 • 14 aircraft to support grow
Slide 17: Balance Sheet Positions Sun Country for Growth
Balance Sheet Positions Sun Country for Growth • Highly competitive, rapidly de-leveraging balance sheet • De minimis non-aircraft debt and limited CAPEX requirements given mid-life passenger fleet and asset- lite cargo segment. Expect 2025 CAPEX to be similar to 2024 CAPEX • Estimate approximately
Slide 18: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation 2024 Free Cash Flow Conversion Uses of Cash • Rapid debt amortization 57% • Returned $115m to shareholders through share repurchases since Nov 2022 19% Diluted Share Count (Millions) 59 55 -32% SNCY Legacy, LCC ULCC 2021 2024 Strong earnings and limited CAPEX require
Slide 19: Differentiated and Unique Aviation Company
Differentiated and Unique Aviation Company Diversified, Stable Earnings Synergistic Businesses Contracted Strong FCF Recurring Limited CAPEX Revenue Streams Differentiated Resiliency Balance Through Sheet the Cycle Sun Country was built to generate best in class performance in most environments 19
Slide 20: Appendix
Appendix suncountry airlines
Slide 21: Description of Special Items
Description of Special Items Special items, net – in millions USD FY 2018 FY 2019 FY 2020 FY 2021 CARES Act grant recognition - - ($62.3) ($71.6) CARES Act employee retention credit - - (2.3) (0.8) Contractual obligations for retired technology 1 - 7.6 - - Sale of airport slot rights 2 - (1.2) - - S
Slide 22: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA – in millions USD FY 2019 FY 2022 FY 2023 FY 2024 Net income (loss) $46.1 $17.7 $72.2 $52.9 Provision for income taxes 14.1 6.3 22.0 16.7 Interest expense 17.2 31.0 42.6 44.3 Interest income (0.9) (4.5) (10.2) (7.8) Special items, net 7.1 - - - Secondary offering cost
Slide 23: Adjusted Pre-Tax Margin
Adjusted Pre-Tax Margin Adjusted income before income tax – in millions USD FY 2018 FY 2019 FY 2021 FY 2022 FY 2023 FY 2024 Net income (Loss) $25.5 $46.1 $81.2 $17.7 $72.2 $52.9 Add: Provision for income tax expense 0.2 14.1 19.1 6.3 22.2 16.7 Income before income tax, as reported 25.7 60.2 100.3 24
Slide 24: Charter Flying Revenue Per Block hour
Charter Flying Revenue Per Block hour Charter revenue – in millions USD (except block hours and per block hour amount) FY 2022 FY 2023 FY 2024 Charter operating revenue $161.6 $190.1 $197.0 Less charter fuel revenue reconciliation 26.9 26.4 18.7 Charter flying revenue 134.7 163.7 178.3 Total charter
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