Sun Country Airlines Holdings, Inc. · NASDAQ:SNCY
Sun Country Airlines — Investor Presentation (February 2025)
23 slides from Sun Country Airlines's investor presentation, February 2025
Slide 1: Investor Presentation February 2025
Investor Presentation February 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 Operate 12 737-800 freighters for Amazon Asset light, lon
Slide 5: Business Model Has Facilitated Rapid, Measured Growth
Business Model Has Facilitated Rapid, Measured Growth… Revenue Has Grown by 84% 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 5
Slide 6: Pre-tax Margin – Worst to First
Pre-tax Margin – Worst to First 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 2023 2024
Slide 7: Consecutive Profitable Quarters
Consecutive Profitable Quarters 11 10 3 3 3 3 1 1 0 7
Slide 8: 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 8
Slide 9: 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 10: 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 11: Ancillary Revenue Growth Potential
Ancillary Revenue Growth Potential Ancillary Revenue per Passenger Growth (1) Initiative Areas $68.68 $66.69 • Seat assignment yield management $53.49 • Enhanced Merchandising $42.89 $40.53 • Pricing Optimization $33.14 • 3rd Party Products $21.70 2018 2019 2020 2021 2022 2023 2024 More upside in an
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 % Charter Flying Und
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: Revised Amazon Air Agreement Provides Key Benefits
Revised Amazon Air Agreement Provides Key Benefits More Aircraft Extended Term 8 incremental B737-800 freighters Agreement extended to 2030 with added to Sun Country fleet, bringing potential further extension to 2037 total freighter fleet to 20 aircraft Balanced Economics No AC CAPEX • Revised econ
Slide 15: Responsible Fleet Growth With Low Capital Outlays
Responsible 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 gr
Slide 16: 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 • Returned $115m to shar
Slide 17: 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 17
Slide 18: Appendix
Appendix suncountry airlines
Slide 19: Description of Special Items
Description of Special Items Special items, net – in millions USD 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) - - Other 3 0.7 - - T
Slide 20: Adjusted Operating Income
Adjusted Operating Income Adjusted operating income – in millions USD FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Operating revenue $401.5 $623.0 $894.4 $1,049.6 $1,075.7 Operating income 17.4 111.9 55.7 127.5 106.0 Special items, net (64.6) (72.4) - - Stock compensation expense 2.1 5.6 2.8 9.3 6.0 Othe
Slide 21: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA Reconciliation – 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 - - - Secondar
Slide 22: Adjusted Pre-Tax Margin
Adjusted Pre-Tax Margin Adjusted operating income – in millions USD FY 2022 FY 2023 FY 2024 Net income (Loss) $17.7 $72.2 $52.9 Add: Provision for income tax expense 6.3 22.2 16.7 Income before income tax, as reported 24.0 94.2 69.6 Stock compensation expense 2.8 9.3 6.0 Gain on asset transactions,
Slide 23: Adjusted CASM
Adjusted CASM Adjusted CASM – FY 2024 Operating Per ASM Expenses - mm (cents) CASM $969.8 12.01 Less: Aircraft Fuel 237.2 2.94 Stock Compensation Expense 6.0 0.07 Cargo Expenses, Not Already Adjusted Above 104.6 1.30 Sun Country Vacations 1.3 0.01 Leased Aircraft, Depreciation Expense 8.1 0.10 Adjus
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