Sun Country Airlines has reported a stable 5.9% increase in its total operating revenue at $311.5 million in the first quarter of the year. Though, its net income was down 7.9% to $35.3 million. The airline's operating income was down marginally at 1.1% to $55.2 million. Its diluted earnings per share remained at 64 cents.
""Total passenger revenue per ASM (TRASM) declined by 9.6%, driven by both our growth as well as significant capacity additions by other airlines in some of our markets,"" said Sun Country CEO Jude Bricker.
Its operating expenses were up 7.5% in the first quarter to $256.3 million. TD Cowen analyst Helen Becker said the ""two largest culprits"" were its maintenance expenses, which were up 29%, as well as landing fees and airport rent, up 34.6%. Becker said: ""Both line items will be elevated this year as [Sun Country] made some changes to [its] maintenance schedule and will do more heavy maintenance this year."" She added that COVID relief funding from airports keeping landing fees and other rents from growing during the pandemic, but these costs have now returned to normal levels.
Its total liquidity at the end of the first quarter was $179.2 million, with its net debt at $565.2 million.
Its guidance for the second quarter estimates a total revenue of between $255 million and $265 million and expects its operating income margin to be 4-7%. Becker added that management had said the second quarter will be ""down more than normal due to the increase in capacity in its markets from other airlines."" Minneapolis, where Delta has began rebuilding its hub, was highlighted as a particular market with increased capacity.
Sun Country Airlines revenue up 6%, net income down
