Cover
Cover | 3 Months Ended |
Mar. 31, 2024 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2024 |
Document Transition Report | false |
Entity File Number | 001-40217 |
Entity Registrant Name | Sun Country Airlines Holdings, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 82-4092570 |
Entity Address, Address Line One | 2005 Cargo Road |
Entity Address, City or Town | Minneapolis |
Entity Address, State or Province | MN |
Entity Address, Postal Zip Code | 55450 |
City Area Code | 651 |
Local Phone Number | 681-3900 |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Trading Symbol | SNCY |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 52,611,323 |
Entity Central Index Key | 0001743907 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and Cash Equivalents | $ 28,427 | $ 46,279 |
Restricted Cash | 11,173 | 17,401 |
Investments | 132,779 | 141,127 |
Accounts Receivable, net of an allowance for credit losses of $39 and $17, respectively | 37,525 | 38,166 |
Short-term Lessor Maintenance Deposits | 1,816 | 1,046 |
Inventory, net of a reserve for obsolescence of $753 and $977, respectively | 8,583 | 7,793 |
Prepaid Expenses | 12,604 | 15,823 |
Other Current Assets | 2,062 | 3,716 |
Total Current Assets | 234,969 | 271,351 |
Property & Equipment, net: | ||
Finance Lease Assets | 344,500 | 304,384 |
Total Property & Equipment | 1,290,917 | 1,221,698 |
Accumulated Depreciation & Amortization | (272,590) | (252,717) |
Total Property & Equipment, net | 1,018,327 | 968,981 |
Other Assets: | ||
Goodwill | 222,223 | 222,223 |
Other Intangible Assets, net of accumulated amortization of $25,622 and $24,190, respectively | 82,119 | 83,551 |
Operating Lease Right-of-use Assets | 14,252 | 14,917 |
Aircraft Deposits | 9,564 | 9,564 |
Long-term Lessor Maintenance Deposits | 48,181 | 44,675 |
Other Assets | 9,444 | 8,365 |
Total Other Assets | 385,783 | 383,295 |
Total Assets | 1,639,079 | 1,623,627 |
Current Liabilities: | ||
Accounts Payable | 59,929 | 59,011 |
Accrued Salaries, Wages, and Benefits | 31,787 | 33,305 |
Accrued Transportation Taxes | 16,459 | 18,097 |
Air Traffic Liabilities | 119,938 | 157,996 |
Finance Lease Obligations | 45,083 | 44,756 |
Loyalty Program Liabilities | 9,404 | 9,898 |
Operating Lease Obligations | 2,233 | 2,219 |
Current Maturities of Long-term Debt, net | 74,398 | 74,177 |
Income Tax Receivable Agreement Liability | 10,611 | 3,250 |
Other Current Liabilities | 13,725 | 15,873 |
Total Current Liabilities | 383,567 | 418,582 |
Long-term Liabilities: | ||
Finance Lease Obligations | 268,687 | 232,546 |
Loyalty Program Liabilities | 3,664 | 3,839 |
Operating Lease Obligations | 15,904 | 16,611 |
Long-term Debt, net | 313,733 | 327,468 |
Deferred Tax Liability | 18,080 | 9,148 |
Income Tax Receivable Agreement Liability | 87,083 | 97,794 |
Other Long-term Liabilities | 7,355 | 3,236 |
Total Long-term Liabilities | 714,506 | 690,642 |
Total Liabilities | 1,098,073 | 1,109,224 |
Commitments and Contingencies (see Note 10) | ||
Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | ||
Common stock, with $0.01 par value, 995,000,000 shares authorized, 58,954,329 and 58,878,723 issued and 52,611,323 and 53,291,001 outstanding at March 31, 2024 and December 31, 2023, respectively | 590 | 589 |
Preferred Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | ||
Preferred stock, with $0.01 par value, 5,000,000 shares authorized, no shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 0 | 0 |
Treasury stock, at cost, 6,343,006 and 5,587,722 shares held at March 31, 2024 and December 31, 2023, respectively | (105,937) | (94,341) |
Additional Paid-In Capital | 517,012 | 513,988 |
Retained Earnings | 129,542 | 94,229 |
Accumulated Other Comprehensive Loss | (201) | (62) |
Total Stockholders' Equity | 541,006 | 514,403 |
Total Liabilities and Stockholders' Equity | 1,639,079 | 1,623,627 |
Aircraft and Flight Equipment | ||
Property & Equipment, net: | ||
Property & Equipment, net: | 703,222 | 685,559 |
Aircraft and Flight Equipment Held for Operating Lease | ||
Property & Equipment, net: | ||
Property & Equipment, net: | 154,399 | 154,185 |
Ground Equipment and Leasehold Improvements | ||
Property & Equipment, net: | ||
Property & Equipment, net: | 44,379 | 39,847 |
Computer Hardware and Software | ||
Property & Equipment, net: | ||
Property & Equipment, net: | 19,430 | 17,875 |
Rotable Parts | ||
Property & Equipment, net: | ||
Property & Equipment, net: | $ 24,987 | $ 19,848 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, allowance for credit losses | $ 39 | $ 17 |
Inventory, reserve for obsolescence | 753 | 977 |
Accumulated amortization | $ 25,622 | $ 24,190 |
Common stock-par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 995,000,000 | 995,000,000 |
Common stock, shares issued (in shares) | 58,954,329 | 58,878,723 |
Common stock, shares outstanding (in shares) | 52,611,323 | 53,291,001 |
Preferred stock-par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock (in shares) | 6,343,006 | 5,587,722 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating Revenues: | ||
Total Operating Revenues | $ 311,483 | $ 294,115 |
Operating Expenses: | ||
Aircraft Fuel | 70,304 | 72,290 |
Salaries, Wages, and Benefits | 82,238 | 75,430 |
Aircraft Rent | 0 | 1,480 |
Maintenance | 16,817 | 13,039 |
Sales and Marketing | 10,679 | 9,929 |
Depreciation and Amortization | 23,809 | 19,460 |
Ground Handling | 9,154 | 9,170 |
Landing Fees and Airport Rent | 14,729 | 10,945 |
Other Operating, net | 28,577 | 26,589 |
Total Operating Expenses | 256,307 | 238,332 |
Operating Income | 55,176 | 55,783 |
Non-operating Income (Expense): | ||
Interest Income | 2,448 | 2,741 |
Interest Expense | (11,112) | (8,630) |
Other, net | 46 | (212) |
Total Non-operating Expense, net | (8,618) | (6,101) |
Income Before Income Tax | 46,558 | 49,682 |
Income Tax Expense | 11,245 | 11,354 |
Net Income | $ 35,313 | $ 38,328 |
Net Income per share to common stockholders: | ||
Basic (in dollars per share) | $ 0.67 | $ 0.68 |
Diluted (in dollars per share) | $ 0.64 | $ 0.64 |
Shares used for computation: | ||
Basic (in shares) | 53,034,538 | 56,630,656 |
Diluted (in shares) | 55,397,685 | 59,535,045 |
Passenger | ||
Operating Revenues: | ||
Total Operating Revenues | $ 274,664 | $ 267,269 |
Cargo | ||
Operating Revenues: | ||
Total Operating Revenues | 23,948 | 23,361 |
Other | ||
Operating Revenues: | ||
Total Operating Revenues | $ 12,871 | $ 3,485 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Net Income | $ 35,313 | $ 38,328 |
Other Comprehensive (Loss) Income: | ||
Net unrealized (losses) gains on Available-for-Sale securities, net of deferred tax (benefit) expense of $(42) and $116, respectively | (139) | 389 |
Other Comprehensive (Loss) Income | (139) | 389 |
Comprehensive Income | $ 35,174 | $ 38,717 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Deferred tax expense | $ (42) | $ 116 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Warrants | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
Warrants, outstanding, at beginning of period (in shares) at Dec. 31, 2022 | 2,402,268 | ||||||
Common stock, outstanding, at beginning of period (in shares) at Dec. 31, 2022 | 58,217,647 | ||||||
Balances, at beginning of period at Dec. 31, 2022 | $ 492,712 | $ 582 | $ (17,605) | $ 488,494 | $ 22,048 | $ (807) | |
Treasury Stock, at beginning of period (in shares) at Dec. 31, 2022 | 892,409 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock Issued for Stock-Based Awards (in shares) | 147,105 | ||||||
Stock Issued for Stock-Based Awards | 556 | $ 2 | 554 | ||||
Net Stock Settlement of Stock-Based Awards (in shares) | 406 | ||||||
Net Stock Settlement of Stock-Based Awards | (8) | $ (8) | |||||
Net Income | 38,328 | 38,328 | |||||
Common Stock Repurchases (in shares) | 1,230,932 | ||||||
Common Stock Repurchases | (15,048) | $ (22,549) | 7,501 | ||||
Amazon Warrants (in shares) | 189,652 | ||||||
Amazon Warrants | 1,400 | 1,400 | |||||
Stock-based Compensation | 2,678 | 2,678 | |||||
Other Comprehensive Income | 389 | 389 | |||||
Warrants, outstanding, at end of period (in shares) at Mar. 31, 2023 | 2,591,920 | ||||||
Common stock, outstanding, at end of period (in shares) at Mar. 31, 2023 | 58,364,752 | ||||||
Balances, at end of period at Mar. 31, 2023 | $ 521,007 | $ 584 | $ (40,162) | 500,627 | 60,376 | (418) | |
Treasury Stock, at end of period (in shares) at Mar. 31, 2023 | 2,123,747 | ||||||
Warrants, outstanding, at beginning of period (in shares) at Dec. 31, 2023 | 3,224,093 | ||||||
Common stock, outstanding, at beginning of period (in shares) at Dec. 31, 2023 | 53,291,001 | 58,878,723 | |||||
Balances, at beginning of period at Dec. 31, 2023 | $ 514,403 | $ 589 | $ (94,341) | 513,988 | 94,229 | (62) | |
Treasury Stock, at beginning of period (in shares) at Dec. 31, 2023 | 5,587,722 | 5,587,722 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock Issued for Stock-Based Awards (in shares) | 75,606 | ||||||
Stock Issued for Stock-Based Awards | $ 111 | $ 1 | 110 | ||||
Net Income | 35,313 | 35,313 | |||||
Common Stock Repurchases (in shares) | 755,284 | ||||||
Common Stock Repurchases | (11,596) | $ (11,596) | |||||
Amazon Warrants (in shares) | 189,652 | ||||||
Amazon Warrants | 1,400 | 1,400 | |||||
Stock-based Compensation | 1,514 | 1,514 | |||||
Other Comprehensive Income | $ (139) | (139) | |||||
Warrants, outstanding, at end of period (in shares) at Mar. 31, 2024 | 3,413,745 | ||||||
Common stock, outstanding, at end of period (in shares) at Mar. 31, 2024 | 52,611,323 | 58,954,329 | |||||
Balances, at end of period at Mar. 31, 2024 | $ 541,006 | $ 590 | $ (105,937) | $ 517,012 | $ 129,542 | $ (201) | |
Treasury Stock, at end of period (in shares) at Mar. 31, 2024 | 6,343,006 | 6,343,006 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from Operating Activities | ||
Net Income | $ 35,313 | $ 38,328 |
Adjustments to reconcile Net Income to Cash from Operating Activities: | ||
Depreciation and Amortization | 23,809 | 19,460 |
Deferred Income Taxes | 8,974 | 10,450 |
Other, net | 2,883 | 4,643 |
Changes in Operating Assets and Liabilities: | ||
Accounts Receivable | 4,147 | (468) |
Inventory | (1,319) | (305) |
Prepaid Expenses | 3,218 | (198) |
Lessor Maintenance Deposits | (4,276) | (2,858) |
Aircraft Deposits | 0 | (187) |
Other Assets | 1,093 | 581 |
Accounts Payable | 2,455 | (288) |
Accrued Transportation Taxes | (1,638) | (2,264) |
Air Traffic Liabilities | (38,058) | (16,382) |
Loyalty Program Liabilities | (669) | (1,638) |
Operating Lease Obligations | (455) | (1,434) |
Other Liabilities | (4,756) | 421 |
Net Cash Provided by Operating Activities | 30,721 | 47,861 |
Cash Flows from Investing Activities: | ||
Purchases of Property & Equipment | (29,698) | (104,978) |
Purchases of Investments | (31,200) | (24,228) |
Proceeds from the Maturities of Investments | 39,500 | 32,840 |
Other, net | 1,091 | 1,129 |
Net Cash Used in Investing Activities | (20,307) | (95,237) |
Cash Flows from Financing Activities: | ||
Common Stock Repurchases | (11,493) | (14,812) |
Proceeds from Borrowings | 0 | 71,280 |
Repayment of Finance Lease Obligations | (5,847) | (4,277) |
Repayment of Borrowings | (13,830) | (10,122) |
Other, net | (3,324) | (3,258) |
Net Cash Provided by (Used in) Financing Activities | (34,494) | 38,811 |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | (24,080) | (8,565) |
Cash, Cash Equivalents and Restricted Cash--Beginning of the Period | 63,680 | 102,928 |
Cash, Cash Equivalents and Restricted Cash--End of the Period | 39,600 | 94,363 |
Non-cash transactions: | ||
Aircraft Acquired under Finance Lease | $ 40,116 | $ 0 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Cash Flows [Abstract] | ||||
Cash and Cash Equivalents | $ 28,427 | $ 46,279 | $ 71,587 | |
Restricted Cash | 11,173 | 17,401 | 22,776 | |
Total Cash, Cash Equivalents and Restricted Cash | $ 39,600 | $ 63,680 | $ 94,363 | $ 102,928 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Sun Country Airlines Holdings, Inc. (together with its consolidated subsidiaries, "Sun Country" or the "Company") is the parent company of Sun Country, Inc., which is a certificated air carrier providing scheduled passenger service, air cargo service, charter air transportation and related services. The Company has prepared the unaudited Condensed Consolidated Financial Statements according to U.S. Generally Accepted Accounting Principles (“GAAP”) and has included the accounts of Sun Country Airlines Holdings, Inc. and its subsidiaries. Certain information and footnote disclosures normally included in the audited annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for Form 10-Q. Therefore, the accompanying Condensed Consolidated Financial Statements of Sun Country Airlines Holdings, Inc. should be read in conjunction with the Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the SEC ("2023 10-K"). Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited Condensed Consolidated Financial Statements for the interim periods presented. The Company reclassified certain prior period amounts to conform to the current period presentation. All material intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in accordance with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. Due to impacts from seasonal variations in the demand for air travel, the volatility of aircraft fuel prices, the impact of macroeconomic conditions, and other factors, operating results for the three months ended March 31, 2024 are not necessarily indicative of operating results for other interim periods or for the full year ending December 31, 2024. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Sun Country is a certificated air carrier generating Operating Revenues from Scheduled Service, Charter, Ancillary, Cargo and Other revenue. Scheduled Service revenue mainly consists of base fares. Charter revenue is primarily generated through service provided to the U.S. Department of Defense ("DoD"), collegiate and professional sports teams, and casinos. Ancillary revenues consist of revenue earned from air travel-related services, such as: baggage fees, seat selection fees, other fees and on-board sales. Cargo consists of revenue earned from flying cargo aircraft for Amazon.com Services, Inc. (together with its affiliates, “Amazon”) under the Air Transportation Services Agreement (the “ATSA”). Other revenue consists primarily of revenue from services in connection with Sun Country Vacations products and rental revenue related to certain transactions where the Company acts as a lessor. The Company recognized $9,275 of rental revenue during the three months ended March 31, 2024. The rental revenue was not material to the Company's results of operations for the three months ended March 31, 2023. The significant categories comprising Operating Revenues are as follows: Three Months Ended March 31, 2024 2023 Scheduled Service $ 141,194 $ 152,657 Charter 47,312 46,187 Ancillary 86,158 68,425 Passenger 274,664 267,269 Cargo 23,948 23,361 Other 12,871 3,485 Total Operating Revenues $ 311,483 $ 294,115 The Company attributes and measures its Operating Revenues by geographic region as defined by the United States Department of Transportation ("DOT") for airline reporting based upon the origin of each passenger and cargo flight segment. The Company’s operations are highly concentrated in the U.S., but include service to many international locations, primarily based on scheduled service to Latin America during the winter season and on military charter services. Total Operating Revenues by geographic region are as follows: Three Months Ended March 31, 2024 2023 Domestic $ 290,214 $ 273,423 Latin America 21,269 20,255 Other — 437 Total Operating Revenues $ 311,483 $ 294,115 Contract Balances The Company’s contract assets primarily relate to costs incurred to get Amazon cargo aircraft ready for service. The balances are included in Other Current Assets and Other Assets on the Condensed Consolidated Balance Sheets. The Company’s contract liabilities are comprised of: 1) ticket sales for transportation that have not yet been provided (reported as Air Traffic Liabilities on the Condensed Consolidated Balance Sheets), 2) outstanding loyalty points that may be redeemed for future travel and other non-air travel awards (reported as Loyalty Program Liabilities on the Condensed Consolidated Balance Sheets) and, 3) the Amazon Deferred Up-front Payment received (reported within Other Current Liabilities and Other Long-term Liabilities on the Condensed Consolidated Balance Sheets). Contract Assets and Liabilities are as follows: March 31, 2024 December 31, 2023 Contract Assets Costs to fulfill contract with Amazon $ 1,279 $ 1,493 Total Contract Assets $ 1,279 $ 1,493 Contract Liabilities Air Traffic Liabilities $ 119,938 $ 157,996 Loyalty Program Liabilities 13,068 13,737 Amazon Deferred Up-front Payment 1,955 2,225 Total Contract Liabilities $ 134,961 $ 173,958 The balance in the Air Traffic Liabilities fluctuates with seasonal travel patterns. Most tickets can be purchased no more than twelve months in advance, therefore any revenue associated with tickets sold for future travel will be recognized within that timeframe. For the three months ended March 31, 2024, $128,502 of revenue was recognized in Passenger revenue that was included in the Air Traffic Liabilities as of December 31, 2023. Loyalty Program The Sun Country Rewards program provides loyalty awards to program members based on accumulated loyalty points. The Company records a liability for loyalty points earned by passengers under the Sun Country Rewards program using two methods: 1) a liability for points that are earned by passengers on purchases of the Company’s services is established by deferring revenue based on the redemption value, net of estimated loyalty points that will expire unused, or breakage; and 2) a liability for points attributed to loyalty points issued to the Company’s Visa card holders is established by deferring a portion of payments received from the Company’s co-branded agreement. The balance of the Loyalty Program Liabilities fluctuates based on seasonal patterns, which impacts the volume of loyalty points awarded through travel or issued to co-branded credit card and other partners (deferral of revenue) and loyalty points redeemed (recognition of revenue). Due to these reasons, the timing of loyalty point redemptions can vary significantly. Changes in the Loyalty Program Liabilities are as follows: 2024 2023 Balance – January 1 $ 13,737 $ 15,437 Loyalty Points Earned 2,430 2,294 Loyalty Points Redeemed (1) (3,099) (3,932) Balance – March 31 $ 13,068 $ 13,799 ______________________ (1) Loyalty points are combined in one homogenous pool, which includes both air and non-air travel awards, and are not separately identifiable. As such, the revenue recognized is comprised of points that were part of the Loyalty Program Liabilities balance at the beginning of the period, as well as points that were earned during the period. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended March 31, 2024 2023 Numerator: Net Income $ 35,313 $ 38,328 Denominator: Weighted Average Common Shares Outstanding - Basic 53,034,538 56,630,656 Dilutive effect of Stock Options, RSUs and Warrants (1) 2,363,147 2,904,389 Weighted Average Common Shares Outstanding - Diluted 55,397,685 59,535,045 Basic earnings per share $ 0.67 $ 0.68 Diluted earnings per share $ 0.64 $ 0.64 ______________________ (1) There were 2,778,194 and 3,117,544 performance-based stock options outstanding at March 31, 2024 and 2023, respectively. As of March 31, 2024 and 2023, 100% and 43% of the performance-based stock options had vested, respectively. As of March 31, 2023, 64% of the performance-based stock options were expected to vest. The Company has excluded 4,230,975 of stock options, RSUs and warrants that would have had an anti-dilutive effect on its diluted earnings per share calculation for the three months ended March 31, 2024. The Company's anti-dilutive shares for the three months ended March 31, 2023 were not material to the Condensed Consolidated Financial Statements. |
AIRCRAFT
AIRCRAFT | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
AIRCRAFT | AIRCRAFT As of March 31, 2024, Sun Country's fleet consisted of 63 Boeing 737-NG aircraft, comprised of 58 Boeing 737-800s and five Boeing 737-900ERs. The following tables summarize the Company’s aircraft fleet activity for the three months ended March 31, 2024 and 2023, respectively: December 31, 2023 Additions Reclassifications Removals March 31, 2024 Passenger: Owned 29 1 — — 30 Finance leases 13 1 — — 14 Sun Country Airlines’ Fleet 42 2 — — 44 Cargo: Aircraft Operated for Amazon 12 — — — 12 Other: Owned Aircraft Held for Operating Lease 5 — — — 5 Subleased Aircraft (1) 1 1 — — 2 Total Aircraft 60 3 — — 63 December 31, 2022 Additions Reclassifications Removals March 31, 2023 Passenger: Owned 29 — — — 29 Finance leases 11 — — — 11 Operating leases 2 — — — 2 Sun Country Airlines’ Fleet 42 — — — 42 Cargo: Aircraft Operated for Amazon 12 — — — 12 Other: Owned Aircraft Held for Operating Lease — 3 — — 3 Total Aircraft 54 3 — — 57 (1) The head lease associated with these subleases are classified as finance leases. During the three months ended March 31, 2024, the Company acquired one incremental aircraft and took control of two aircraft through finance lease arrangements, one of which was subsequently subleased to an unaffiliated airline through the fourth quarter of 2024. Upon expiry of the sublease, the aircraft will be redelivered to the Company and is expected to be inducted into the Company's passenger fleet. Of the 35 Owned aircraft and Owned Aircraft Held for Operating Lease as of March 31, 2024, 31 aircraft were financed and four aircraft were unencumbered. Subsequent to March 31, 2024, the Company purchased one aircraft previously classified as a finance lease, which is now unencumbered. During the three months ended March 31, 2023, the Company acquired three 737-900ERs that are currently on lease to an unaffiliated airline ("Owned Aircraft Held for Operating Lease"). The Owned Aircraft Held for Operating Lease are financed through a term loan arrangement. See Note 6 within Part II, Item 8 in our 2023 10-K for more information on this transaction. Depreciation, amortization, and rent expense on aircraft are as follows: Three Months Ended March 31, Aircraft Status Expense Type 2024 2023 Owned Depreciation $ 14,340 $ 11,872 Finance Leased Amortization 5,730 4,683 Operating Leased Aircraft Rent (1) — 1,480 $ 20,070 $ 18,035 (1) Aircraft Rent expense includes credits for the amortization of over-market liabilities established at the Acquisition Date. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Credit Facilities On February 10, 2021, the Company executed a five-year credit agreement (the “Credit Agreement”) with a group of lenders. The Credit Agreement includes a $25,000 Revolving Credit Facility (the "Revolving Credit Facility") and a $90,000 Delayed Draw Term Loan Facility (“DDTL”), which are collectively referred to as the “Credit Facilities.” The Credit Agreement includes financial covenants that require a minimum trailing 12-month EBITDAR of $87,700 and minimum liquidity, as defined within the Credit Agreement, of $30,000 at the close of any business day. The Company was in compliance with these covenants as of March 31, 2024. Due to previous transactions which utilized the DDTL and the subsequent repayment, no amounts under the DDTL were available to the Company as of March 31, 2024. As of March 31, 2024, the Company had $24,393 of financing available through the Revolving Credit Facility, as $607 had been pledged to support letters of credit. Long-term Debt Term Loan Credit Facility During the three months ended March 31, 2023, the Company executed a term loan credit facility with a face amount of $119,200 for the purpose of financing the five Owned Aircraft Held for Operating Lease. The loan is repaid monthly through March 2030. During the lease term, payments collected from the lessee are applied directly to the repayment of principal and interest on the term loan credit facility. The Owned Aircraft Held for Operating Lease, as well as the related lease payments received from the lessee, are pledged as collateral. The interest rate on the term loan credit facility is determined by using a base rate, which resets monthly, plus an applicable margin, and a fixed credit spread adjustment of 0.1%. The applicable margin during the lease term is fixed at 3.75%, and is subsequently reduced to 3.25% once the aircraft have been redelivered to the Company and a Loan-to-Value ("LTV") ratio calculation is completed at the end of the lease term. The interest rate in effect as of March 31, 2024 was 9.2%. To the extent that the LTV ratio exceeds 75% at the end of the lease term, a principal prepayment will be required in order to reduce the ratio to 75%. If at any point within 12 months of the end of the lease term for each respective aircraft the Company deems it probable that a principal prepayment will be required in order to reduce the LTV ratio to 75%, and such amount can be reasonably estimated, the estimated principal prepayment amount will be reclassified from Long-term Debt, net to Current Maturities of Long-term Debt, net on the Company's Condensed Consolidated Balance Sheets. In the event a principal prepayment is required, amounts received under the end of lease maintenance compensation clause will be applied towards any prepayment obligation. No amounts related to an estimated principal prepayment have been reclassified from Long-term Debt, net to Current Maturities of Long-term Debt, net on the Company's Condensed Consolidated Balance Sheets as of March 31, 2024. Pass-Through Trust Certificates During March 2022, the Company arranged for the issuance of Class A and Class B certificates (the "2022-1 EETC") in an aggregate face amount of $188,277 for the purpose of financing or refinancing 13 aircraft. The Company is required to make bi-annual principal and interest payments each March and September, through March 2031. These notes bear interest at an annual rate between 4.84% and 5.75%. The weighted average interest rate was 5.05% as of March 31, 2024. In December 2019, the Company arranged for the issuance of Class A, Class B and Class C trust certificates Series 2019-1 (the “2019-1 EETC”), in an aggregate face amount of $248,587 for the purpose of financing or refinancing 13 aircraft, which was completed in 2020. The Company is required to make bi-annual principal and interest payments each June and December, through December 2027. These notes bear interest at an annual rate between 4.13% and 6.95%. The weighted average interest rate was 4.30% as of March 31, 2024. Long-term Debt includes the following: March 31, 2024 December 31, 2023 2019-1 EETC (see terms and conditions above) $ 138,423 $ 138,423 2022-1 EETC (see terms and conditions above) 148,653 158,775 Term Loan Credit Facility (see terms and conditions above) 104,733 108,442 Total Debt 391,809 405,640 Less: Unamortized debt issuance costs (3,678) (3,995) Less: Current Maturities of Long-term Debt, net (74,398) (74,177) Total Long-term Debt, net $ 313,733 $ 327,468 Future maturities of the outstanding Debt are as follows: Debt Principal Amortization of Debt Net Debt Remainder of 2024 $ 61,559 $ (871) $ 60,688 2025 80,005 (956) 79,049 2026 61,150 (709) 60,441 2027 65,175 (525) 64,650 2028 36,362 (337) 36,025 Thereafter 87,558 (280) 87,278 Total as of March 31, 2024 $ 391,809 $ (3,678) $ 388,131 The fair value of Debt was $368,207 as of March 31, 2024 and $383,061 as of December 31, 2023. The fair value of the Company’s debt was based on the discounted amount of future cash flows using the Company’s end-of-period estimated incremental borrowing rate for similar obligations. The estimates were primarily based on Level 3 inputs. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS A summary of debt securities by major security type: March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-Sale Securities: (1) Corporate Debt Securities $ 62,525 $ 3 $ (146) $ 62,382 U.S. Government Agency Securities 64,165 — (119) 64,046 Total $ 126,690 $ 3 $ (265) $ 126,428 December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-Sale Securities: (1) Municipal Debt Securities $ 6,981 $ — $ (5) $ 6,976 Corporate Debt Securities 59,222 76 (50) 59,248 U.S. Government Agency Securities 68,118 23 (125) 68,016 Total $ 134,321 $ 99 $ (180) $ 134,240 (1) The Company also holds Certificates of Deposit that are included in Investments on the Condensed Consolidated Balance Sheets totaling $6,351 and $6,887 as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, the unrealized losses were the result of increases in market interest rates and were not the result of a deterioration in the credit quality of the securities. The Company believes that any unrealized losses are recoverable prior to the investment's conversion to cash. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table summarizes the assets measured at fair value on a recurring basis: March 31, 2024 Level 1 Level 2 Level 3 Total Cash & Cash Equivalents $ 28,427 $ — $ — $ 28,427 Available-for-Sale Securities: Corporate Debt Securities — 62,382 — 62,382 U.S. Government Agency Securities — 64,046 — 64,046 Total Available-for-Sale Securities — 126,428 — 126,428 Total Assets Measured at Fair Value on a Recurring Basis $ 28,427 $ 126,428 $ — $ 154,855 December 31, 2023 Level 1 Level 2 Level 3 Total Cash & Cash Equivalents $ 46,279 $ — $ — $ 46,279 Available-for-Sale Securities: Municipal Debt Securities — 6,976 — 6,976 Corporate Debt Securities — 59,248 — 59,248 U.S. Government Agency Securities — 68,016 — 68,016 Total Available-for-Sale Securities — 134,240 — 134,240 Total Assets Measured at Fair Value on a Recurring Basis $ 46,279 $ 134,240 $ — $ 180,519 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's effective tax rate for the three months ended March 31, 2024 and 2023 was 24.2% and 22.9%, respectively. The effective tax rate represents a blend of federal and state taxes and includes the impact of certain nondeductible or nontaxable items. The quarter-over-quarter increase in the effective tax rate was primarily due to a decrease in the impact of stock option exercises over the comparative periods. Tax Receivable Agreement The total Tax Receivable Agreement ("TRA") balance as of March 31, 2024 and December 31, 2023 was $97,694 and $101,044, of which $10,611 and $3,250 was current, respectively. The TRA liability is an estimate and actual amounts payable under the TRA could differ from this estimate. During the three months ended March 31, 2024 and 2023, the Company made payments of $3,350 and $2,425, respectively, to the pre-IPO stockholders (the “TRA holders”), which includes certain members of the Company's management and certain members of the Company's Board of Directors. The payment is included within Financing Activities on the Condensed Consolidated Statements of Cash Flows. Payments will be made in future periods as attributes that existed at the time of the IPO (the “Pre-IPO Tax Attributes”) are utilized. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Equity Transactions Common Stock Repurchases The Company maintains a stock repurchase program, which has no expiration date and may be modified, suspended, or terminated by the Company's Board of Directors at any time. As of March 31, 2024, the Company did not have any remaining amount of Board authorization to repurchase shares of its Common Stock. During the three months ended March 31, 2024, the Company repurchased 755,284 shares of its Common Stock at a total cost of $11,493, or an average price of $15.22 per share. The repurchases were part of open market purchases. During the three months ended March 31, 2023, the Company repurchased 750,000 shares of its Common Stock at a total cost of $14,812, or an average price of $19.75 per share. The repurchases were part of a secondary public offering of the Company's shares by the Apollo Stockholder. The settlement of a $25,000 Accelerated Share Repurchase Program occurred during January 2023, upon which the Company received an additional 480,932 shares. Amazon Agreement On December 13, 2019, the Company signed a six-year contract (with two, two-year extension options, for a maximum term of 10 years) with Amazon to provide cargo services under the ATSA. In connection with the ATSA, the Company issued warrants to Amazon to purchase an aggregate of up to 9,482,606 shares of common stock at an exercise price of approximately $15.17 per share. During both the three months ended March 31, 2024 and 2023, 189,652 warrants vested, respectively. As of March 31, 2024 and 2023, the cumulative vested warrants held by Amazon were 3,413,745 and 2,591,920, respectively. The exercise period of these warrants is through the eighth anniversary of the issue date. Stock Compensation During the first quarter of 2024, the Company issued performance-based restricted stock units (“PRSUs”) to certain employees. The PRSUs are long-term incentive opportunities that represent the right to receive shares of the Company’s Common Stock based on the achievement of certain performance conditions over a three-year period. Potential payouts range from 50%-150% of a target level. The maximum number of shares that may be issued on the PRSU vesting date is 259,095. The Company recognizes PRSU stock compensation expense to the extent it is probable the performance condition(s) will be satisfied. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company has contractual obligations and commitments primarily with regard to lease arrangements, repayment of debt (see Note 5 ), payments under the TRA (see Note 8 ), and probable future purchases of aircraft. The Company is subject to an audit by the Internal Revenue Service (“IRS”) related to the collection of federal excise taxes on optional passenger seat selection charges covering the period of October 1, 2021 through June 30, 2023. During 2024, the Company received an assessment of approximately $2,700 from the IRS related to the results of the audit. The Company believes a loss in this matter is not probable and has not recognized a loss contingency. The Company is subject to various legal proceedings in the normal course of business and expenses legal costs as incurred. Management does not believe these proceedings will have a materially adverse effect on the Company. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | OPERATING SEGMENTS The following tables present financial information for the Company’s two operating segments: Passenger and Cargo. Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Passenger Cargo Consolidated Passenger Cargo Consolidated Operating Revenues $ 287,535 $ 23,948 $ 311,483 $ 270,754 $ 23,361 $ 294,115 Non-Fuel Operating Expenses 160,700 25,303 186,003 140,637 25,405 166,042 Aircraft Fuel 70,304 — 70,304 72,266 24 72,290 Total Operating Expenses 231,004 25,303 256,307 212,903 25,429 238,332 Operating Income (Loss) $ 56,531 $ (1,355) 55,176 $ 57,851 $ (2,068) 55,783 Interest Income 2,448 2,741 Interest Expense (11,112) (8,630) Other, net 46 (212) Income Before Income Tax $ 46,558 $ 49,682 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company evaluated subsequent events for the period from the Balance Sheet date through May 7, 2024, the date that the Condensed Consolidated Financial Statements were available to be issued. Subsequent to March 31, 2024, the Company purchased one aircraft previously classified as a finance lease, which is now unencumbered. For more information on the subsequent events, see Note 4 of the Notes to the Condensed Consolidated Financial Statements included elsewhere in this report. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income | $ 35,313 | $ 38,328 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | The following table describes contracts, instructions or written plans for the sale or purchase of our securities adopted, terminated or modified by our directors and executive officers during the three months ended March 31, 2024, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). Name and Title Adoption, Termination or Modification Date of Adoption, Termination or Modification Duration of Plan (Scheduled Expiration Date of Plan) Number of Securities to be Purchased (Sold) under the Plan Gregory Mays, Executive Vice President and Chief Operating Officer Adoption February 2, 2024 March 31, 2025 (268,000) Grant Whitney, Senior Vice President and Chief Revenue Officer Termination March 4, 2024 April 2, 2024 (142,463) Grant Whitney, Senior Vice President and Chief Revenue Officer Adoption March 4, 2024 July 7, 2025 (226,288) |
Non-Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Gregory Mays December 29, 2023 Plan [Member] | Gregory Mays [Member] | |
Trading Arrangements, by Individual | |
Name | Gregory Mays |
Title | Executive Vice President and Chief Operating Officer |
Gregory Mays March 31, 2025 Plan [Member] | Gregory Mays [Member] | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | February 2, 2024 |
Arrangement Duration | 423 days |
Aggregate Available | (268,000) |
Grant Whitney April 2, 2024 Plan [Member] | Grant Whitney [Member] | |
Trading Arrangements, by Individual | |
Name | Grant Whitney |
Title | Senior Vice President and Chief Revenue Officer |
Rule 10b5-1 Arrangement Terminated | true |
Termination Date | March 4, 2024 |
Arrangement Duration | 29 days |
Aggregate Available | (142,463) |
Grant Whitney July 7, 2025 Plan [Member] | Grant Whitney [Member] | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 4, 2024 |
Arrangement Duration | 490 days |
Aggregate Available | (226,288) |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | The Company has prepared the unaudited Condensed Consolidated Financial Statements according to U.S. Generally Accepted Accounting Principles (“GAAP”) and has included the accounts of Sun Country Airlines Holdings, Inc. and its subsidiaries. Certain information and footnote disclosures normally included in the audited annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for Form 10-Q. Therefore, the accompanying Condensed Consolidated Financial Statements of Sun Country Airlines Holdings, Inc. should be read in conjunction with the Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the SEC ("2023 10-K"). Management believes that all adjustments necessary for the fair presentation of results, consisting of normally recurring items, have been included in the unaudited Condensed Consolidated Financial Statements for the interim periods presented. The Company reclassified certain prior period amounts to conform to the current period presentation. All material intercompany balances and transactions have been eliminated in consolidation. |
Estimates and Assumptions | The preparation of financial statements in accordance with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of significant categories comprising operating revenues | The significant categories comprising Operating Revenues are as follows: Three Months Ended March 31, 2024 2023 Scheduled Service $ 141,194 $ 152,657 Charter 47,312 46,187 Ancillary 86,158 68,425 Passenger 274,664 267,269 Cargo 23,948 23,361 Other 12,871 3,485 Total Operating Revenues $ 311,483 $ 294,115 |
Schedule of operating revenues by geographic region | Total Operating Revenues by geographic region are as follows: Three Months Ended March 31, 2024 2023 Domestic $ 290,214 $ 273,423 Latin America 21,269 20,255 Other — 437 Total Operating Revenues $ 311,483 $ 294,115 |
Summary of contract assets and liabilities | Contract Assets and Liabilities are as follows: March 31, 2024 December 31, 2023 Contract Assets Costs to fulfill contract with Amazon $ 1,279 $ 1,493 Total Contract Assets $ 1,279 $ 1,493 Contract Liabilities Air Traffic Liabilities $ 119,938 $ 157,996 Loyalty Program Liabilities 13,068 13,737 Amazon Deferred Up-front Payment 1,955 2,225 Total Contract Liabilities $ 134,961 $ 173,958 |
Schedule of change in contract with customer, liability | Changes in the Loyalty Program Liabilities are as follows: 2024 2023 Balance – January 1 $ 13,737 $ 15,437 Loyalty Points Earned 2,430 2,294 Loyalty Points Redeemed (1) (3,099) (3,932) Balance – March 31 $ 13,068 $ 13,799 ______________________ (1) Loyalty points are combined in one homogenous pool, which includes both air and non-air travel awards, and are not separately identifiable. As such, the revenue recognized is comprised of points that were part of the Loyalty Program Liabilities balance at the beginning of the period, as well as points that were earned during the period. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Summary of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended March 31, 2024 2023 Numerator: Net Income $ 35,313 $ 38,328 Denominator: Weighted Average Common Shares Outstanding - Basic 53,034,538 56,630,656 Dilutive effect of Stock Options, RSUs and Warrants (1) 2,363,147 2,904,389 Weighted Average Common Shares Outstanding - Diluted 55,397,685 59,535,045 Basic earnings per share $ 0.67 $ 0.68 Diluted earnings per share $ 0.64 $ 0.64 ______________________ (1) There were 2,778,194 and 3,117,544 performance-based stock options outstanding at March 31, 2024 and 2023, respectively. As of March 31, 2024 and 2023, 100% and 43% of the performance-based stock options had vested, respectively. As of March 31, 2023, 64% of the performance-based stock options were expected to vest. |
AIRCRAFT (Tables)
AIRCRAFT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Summary of aircraft fleet activity | The following tables summarize the Company’s aircraft fleet activity for the three months ended March 31, 2024 and 2023, respectively: December 31, 2023 Additions Reclassifications Removals March 31, 2024 Passenger: Owned 29 1 — — 30 Finance leases 13 1 — — 14 Sun Country Airlines’ Fleet 42 2 — — 44 Cargo: Aircraft Operated for Amazon 12 — — — 12 Other: Owned Aircraft Held for Operating Lease 5 — — — 5 Subleased Aircraft (1) 1 1 — — 2 Total Aircraft 60 3 — — 63 December 31, 2022 Additions Reclassifications Removals March 31, 2023 Passenger: Owned 29 — — — 29 Finance leases 11 — — — 11 Operating leases 2 — — — 2 Sun Country Airlines’ Fleet 42 — — — 42 Cargo: Aircraft Operated for Amazon 12 — — — 12 Other: Owned Aircraft Held for Operating Lease — 3 — — 3 Total Aircraft 54 3 — — 57 (1) The head lease associated with these subleases are classified as finance leases. |
Schedule of depreciation, amortization, and rent expense on aircraft | Depreciation, amortization, and rent expense on aircraft are as follows: Three Months Ended March 31, Aircraft Status Expense Type 2024 2023 Owned Depreciation $ 14,340 $ 11,872 Finance Leased Amortization 5,730 4,683 Operating Leased Aircraft Rent (1) — 1,480 $ 20,070 $ 18,035 (1) Aircraft Rent expense includes credits for the amortization of over-market liabilities established at the Acquisition Date. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Summary of long term debt | Long-term Debt includes the following: March 31, 2024 December 31, 2023 2019-1 EETC (see terms and conditions above) $ 138,423 $ 138,423 2022-1 EETC (see terms and conditions above) 148,653 158,775 Term Loan Credit Facility (see terms and conditions above) 104,733 108,442 Total Debt 391,809 405,640 Less: Unamortized debt issuance costs (3,678) (3,995) Less: Current Maturities of Long-term Debt, net (74,398) (74,177) Total Long-term Debt, net $ 313,733 $ 327,468 |
Schedule of future maturities of the outstanding debt | Future maturities of the outstanding Debt are as follows: Debt Principal Amortization of Debt Net Debt Remainder of 2024 $ 61,559 $ (871) $ 60,688 2025 80,005 (956) 79,049 2026 61,150 (709) 60,441 2027 65,175 (525) 64,650 2028 36,362 (337) 36,025 Thereafter 87,558 (280) 87,278 Total as of March 31, 2024 $ 391,809 $ (3,678) $ 388,131 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of debt securities by major security type | A summary of debt securities by major security type: March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-Sale Securities: (1) Corporate Debt Securities $ 62,525 $ 3 $ (146) $ 62,382 U.S. Government Agency Securities 64,165 — (119) 64,046 Total $ 126,690 $ 3 $ (265) $ 126,428 December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-Sale Securities: (1) Municipal Debt Securities $ 6,981 $ — $ (5) $ 6,976 Corporate Debt Securities 59,222 76 (50) 59,248 U.S. Government Agency Securities 68,118 23 (125) 68,016 Total $ 134,321 $ 99 $ (180) $ 134,240 (1) The Company also holds Certificates of Deposit that are included in Investments on the Condensed Consolidated Balance Sheets totaling $6,351 and $6,887 as of March 31, 2024 and December 31, 2023, respectively. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of assets and liabilities measured at fair value on a recurring basis | The following table summarizes the assets measured at fair value on a recurring basis: March 31, 2024 Level 1 Level 2 Level 3 Total Cash & Cash Equivalents $ 28,427 $ — $ — $ 28,427 Available-for-Sale Securities: Corporate Debt Securities — 62,382 — 62,382 U.S. Government Agency Securities — 64,046 — 64,046 Total Available-for-Sale Securities — 126,428 — 126,428 Total Assets Measured at Fair Value on a Recurring Basis $ 28,427 $ 126,428 $ — $ 154,855 December 31, 2023 Level 1 Level 2 Level 3 Total Cash & Cash Equivalents $ 46,279 $ — $ — $ 46,279 Available-for-Sale Securities: Municipal Debt Securities — 6,976 — 6,976 Corporate Debt Securities — 59,248 — 59,248 U.S. Government Agency Securities — 68,016 — 68,016 Total Available-for-Sale Securities — 134,240 — 134,240 Total Assets Measured at Fair Value on a Recurring Basis $ 46,279 $ 134,240 $ — $ 180,519 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Summary of financial information for the operating segments | The following tables present financial information for the Company’s two operating segments: Passenger and Cargo. Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Passenger Cargo Consolidated Passenger Cargo Consolidated Operating Revenues $ 287,535 $ 23,948 $ 311,483 $ 270,754 $ 23,361 $ 294,115 Non-Fuel Operating Expenses 160,700 25,303 186,003 140,637 25,405 166,042 Aircraft Fuel 70,304 — 70,304 72,266 24 72,290 Total Operating Expenses 231,004 25,303 256,307 212,903 25,429 238,332 Operating Income (Loss) $ 56,531 $ (1,355) 55,176 $ 57,851 $ (2,068) 55,783 Interest Income 2,448 2,741 Interest Expense (11,112) (8,630) Other, net 46 (212) Income Before Income Tax $ 46,558 $ 49,682 |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUE | ||
Total Operating Revenues | $ 311,483 | $ 294,115 |
Rental Revenue | ||
REVENUE | ||
Total Operating Revenues | 9,275 | |
Passenger | ||
REVENUE | ||
Total Operating Revenues | 274,664 | $ 267,269 |
Revenue recognized | $ 128,502 |
REVENUE - Significant Categorie
REVENUE - Significant Categories of Operating Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUE | ||
Total Operating Revenues | $ 311,483 | $ 294,115 |
Passenger | ||
REVENUE | ||
Total Operating Revenues | 274,664 | 267,269 |
Scheduled Service | ||
REVENUE | ||
Total Operating Revenues | 141,194 | 152,657 |
Charter | ||
REVENUE | ||
Total Operating Revenues | 47,312 | 46,187 |
Ancillary | ||
REVENUE | ||
Total Operating Revenues | 86,158 | 68,425 |
Cargo | ||
REVENUE | ||
Total Operating Revenues | 23,948 | 23,361 |
Other | ||
REVENUE | ||
Total Operating Revenues | $ 12,871 | $ 3,485 |
REVENUE - Operating Revenues by
REVENUE - Operating Revenues by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUE | ||
Total Operating Revenues | $ 311,483 | $ 294,115 |
Domestic | ||
REVENUE | ||
Total Operating Revenues | 290,214 | 273,423 |
Latin America | ||
REVENUE | ||
Total Operating Revenues | 21,269 | 20,255 |
Other | ||
REVENUE | ||
Total Operating Revenues | $ 0 | $ 437 |
REVENUE - Contract Balances (De
REVENUE - Contract Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
REVENUE | ||||
Contract Assets | $ 1,279 | $ 1,493 | ||
Total Contract Liabilities | 134,961 | 173,958 | ||
Air Traffic Liabilities | ||||
REVENUE | ||||
Total Contract Liabilities | 119,938 | 157,996 | ||
Loyalty Program Liabilities | ||||
REVENUE | ||||
Total Contract Liabilities | 13,068 | 13,737 | $ 13,799 | $ 15,437 |
Amazon Deferred Up-front Payment | ||||
REVENUE | ||||
Total Contract Liabilities | 1,955 | 2,225 | ||
Costs to fulfill contract with Amazon | ||||
REVENUE | ||||
Contract Assets | $ 1,279 | $ 1,493 |
REVENUE - Loyalty Program (Deta
REVENUE - Loyalty Program (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Balance – January 1 | $ 173,958 | |
Balance – March 31 | 134,961 | |
Loyalty Program Liabilities | ||
Change in Contract with Customer, Liability [Roll Forward] | ||
Balance – January 1 | 13,737 | $ 15,437 |
Loyalty Points Earned | 2,430 | 2,294 |
Loyalty Points Redeemed | (3,099) | (3,932) |
Balance – March 31 | $ 13,068 | $ 13,799 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net Income | $ 35,313 | $ 38,328 |
Denominator: | ||
Weighted Average Common Shares Outstanding - Basic (in shares) | 53,034,538 | 56,630,656 |
Dilutive effect of Stock Options, RSUs and Warrants (in shares) | 2,363,147 | 2,904,389 |
Weighted Average Common Shares Outstanding - Diluted (in shares) | 55,397,685 | 59,535,045 |
Basic earnings per share (in dollars per share) | $ 0.67 | $ 0.68 |
Diluted earnings per share (in dollars per share) | $ 0.64 | $ 0.64 |
Performance-based stock options | ||
Denominator: | ||
Outstanding shares (in shares) | 2,778,194 | 3,117,544 |
Percentage of stock options vested and exercisable | 100% | 43% |
Percentage of stock options expected to meet performance conditions | 64% |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 shares | |
Earnings Per Share [Abstract] | |
Antidilutive securities excluded from computation of earnings per share (in shares) | 4,230,975 |
AIRCRAFT - Additional Informati
AIRCRAFT - Additional Information (Details) - aircraft | 1 Months Ended | 3 Months Ended | |||
May 07, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
AIRCRAFT - Owned and Leased | |||||
Number of aircraft | 63 | 57 | 60 | 54 | |
Additions | 3 | 3 | |||
Number of aircraft of finance lease | 2 | ||||
Number of aircraft owned and refinanced | 35 | ||||
Subsequent Event | |||||
AIRCRAFT - Owned and Leased | |||||
Number of purchased aircrafts previously under finance leases | 1 | ||||
Boeing 737-800 | |||||
AIRCRAFT - Owned and Leased | |||||
Number of aircraft | 58 | ||||
B-737-900 | |||||
AIRCRAFT - Owned and Leased | |||||
Number of aircraft | 5 | ||||
Passenger | |||||
AIRCRAFT - Owned and Leased | |||||
Number of aircraft | 44 | 42 | 42 | 42 | |
Additions | 2 | 0 | |||
Number of aircrafts financed | 31 | ||||
Number of aircrafts unencumbered | 4 | ||||
Passenger | Owned | |||||
AIRCRAFT - Owned and Leased | |||||
Number of aircraft | 30 | 29 | 29 | 29 | |
Additions | 1 | 0 | |||
Other Property | Subleased Aircraft | |||||
AIRCRAFT - Owned and Leased | |||||
Number of aircraft | 2 | 1 | |||
Additions | 1 | ||||
Other Property | Owned Aircraft Held for Operating Lease | |||||
AIRCRAFT - Owned and Leased | |||||
Number of aircraft | 3 | 0 | |||
Additions | 3 |
AIRCRAFT - Aircraft Fleet (Deta
AIRCRAFT - Aircraft Fleet (Details) - aircraft | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement in Property, Plant and Equipment [Roll Forward] | ||
Balance at beginning of period | 60 | 54 |
Additions | 3 | 3 |
Reclassifications | 0 | 0 |
Removals | 0 | 0 |
Balance at end of period | 63 | 57 |
Passenger | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Balance at beginning of period | 42 | 42 |
Additions | 2 | 0 |
Reclassifications | 0 | 0 |
Removals | 0 | 0 |
Balance at end of period | 44 | 42 |
Passenger | Owned | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Balance at beginning of period | 29 | 29 |
Additions | 1 | 0 |
Reclassifications | 0 | 0 |
Removals | 0 | 0 |
Balance at end of period | 30 | 29 |
Passenger | Finance leases | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Balance at beginning of period | 13 | 11 |
Additions | 1 | 0 |
Reclassifications | 0 | 0 |
Removals | 0 | 0 |
Balance at end of period | 14 | 11 |
Passenger | Operating leases | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Balance at beginning of period | 2 | |
Additions | 0 | |
Reclassifications | 0 | |
Removals | 0 | |
Balance at end of period | 2 | |
Cargo | Aircraft Operated for Amazon | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Balance at beginning of period | 12 | 12 |
Additions | 0 | 0 |
Reclassifications | 0 | 0 |
Removals | 0 | 0 |
Balance at end of period | 12 | 12 |
Other Property | Owned Aircraft Held for Operating Lease | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Additions | 0 | |
Reclassifications | 0 | |
Removals | 0 | |
Balance at end of period | 5 | 5 |
Other Property | Owned Aircraft Held for Operating Lease | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Balance at beginning of period | 0 | |
Additions | 3 | |
Reclassifications | 0 | |
Removals | 0 | |
Balance at end of period | 3 | |
Other Property | Subleased Aircraft | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Balance at beginning of period | 1 | |
Additions | 1 | |
Reclassifications | 0 | |
Removals | 0 | |
Balance at end of period | 2 |
AIRCRAFT - Depreciation, Amorti
AIRCRAFT - Depreciation, Amortization, and Rent Expense on Aircraft (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AIRCRAFT - Owned and Leased | ||
Aircraft Rent | $ 0 | $ 1,480 |
Depreciation amortization and aircraft rent | 20,070 | 18,035 |
Owned | ||
AIRCRAFT - Owned and Leased | ||
Depreciation | 14,340 | 11,872 |
Finance leases | ||
AIRCRAFT - Owned and Leased | ||
Amortization | 5,730 | 4,683 |
Operating leases | ||
AIRCRAFT - Owned and Leased | ||
Aircraft Rent | $ 0 | $ 1,480 |
DEBT - Credit Facilities (Detai
DEBT - Credit Facilities (Details) - USD ($) | Feb. 10, 2021 | Mar. 31, 2024 |
Line of Credit | ||
DEBT | ||
Pledge for letter of credit | $ 607,000 | |
Credit Facilities | Line of Credit | ||
DEBT | ||
Term of debt (in years) | 5 years | |
Minimum EBITDAR required to be maintained | 87,700,000 | |
Minimum liquidity required to be maintained | 30,000,000 | |
Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||
DEBT | ||
Maximum borrowing capacity | $ 25,000,000 | |
Line of credit facility, amount available | 24,393,000 | |
Term Loan Credit Facility (see terms and conditions above) | Loans Payable | ||
DEBT | ||
Maximum borrowing capacity | $ 90,000,000 | |
Current borrowing capacity | $ 0 |
DEBT - Long-term Debt (Details)
DEBT - Long-term Debt (Details) | 1 Months Ended | 3 Months Ended | ||||
Dec. 31, 2019 USD ($) aircraft | Mar. 31, 2024 aircraft | Dec. 31, 2023 aircraft | Mar. 31, 2023 USD ($) aircraft | Dec. 31, 2022 aircraft | Mar. 31, 2022 USD ($) aircraft | |
DEBT | ||||||
Number of aircraft | aircraft | 63 | 60 | 57 | 54 | ||
Line of Credit | Secured Debt | ||||||
DEBT | ||||||
Margin (as a percent) | 0.10% | |||||
Interest rate | 9.20% | |||||
Loan-to -value ratio | 75% | |||||
Line of Credit | Secured Debt | Maximum | ||||||
DEBT | ||||||
Margin (as a percent) | 3.75% | |||||
Line of Credit | Secured Debt | Minimum | ||||||
DEBT | ||||||
Margin (as a percent) | 3.25% | |||||
Term Loan | Notes payable | ||||||
DEBT | ||||||
Face amount | $ | $ 119,200,000 | |||||
2019-1 EETC | Notes payable | ||||||
DEBT | ||||||
Face amount | $ | $ 248,587,000 | |||||
Weighted average interest rate | 4.30% | |||||
Number of used aircrafts purchased or refinanced | aircraft | 13 | |||||
2019-1 EETC | Notes payable | Maximum | ||||||
DEBT | ||||||
Interest rate | 6.95% | |||||
2019-1 EETC | Notes payable | Minimum | ||||||
DEBT | ||||||
Interest rate | 4.13% | |||||
2022-1 EETC | Notes payable | ||||||
DEBT | ||||||
Face amount | $ | $ 188,277,000 | |||||
Number of aircraft financed by debt | aircraft | 13 | |||||
Weighted average interest rate | 5.05% | |||||
2022-1 EETC | Notes payable | Maximum | ||||||
DEBT | ||||||
Interest rate | 5.75% | |||||
2022-1 EETC | Notes payable | Minimum | ||||||
DEBT | ||||||
Interest rate | 4.84% |
DEBT - Long-term Debt Schedule
DEBT - Long-term Debt Schedule (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
DEBT | ||
Total Debt | $ 391,809 | $ 405,640 |
Less: Unamortized debt issuance costs | (3,678) | (3,995) |
Less: Current Maturities of Long-term Debt, net | (74,398) | (74,177) |
Total Long-term Debt, net | 313,733 | 327,468 |
2019-1 EETC | Notes payable | ||
DEBT | ||
Total Debt | 138,423 | 138,423 |
2022-1 EETC | Notes payable | ||
DEBT | ||
Total Debt | 148,653 | 158,775 |
Term Loan Credit Facility (see terms and conditions above) | ||
DEBT | ||
Total Debt | $ 104,733 | $ 108,442 |
DEBT - Future Maturities of the
DEBT - Future Maturities of the Outstanding Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Principal Payments | ||
Remainder of 2024 | $ 61,559 | |
2025 | 80,005 | |
2026 | 61,150 | |
2027 | 65,175 | |
2028 | 36,362 | |
Thereafter | 87,558 | |
Total | 391,809 | $ 405,640 |
Amortization of Debt Issuance Costs | ||
Remainder of 2024 | (871) | |
2025 | (956) | |
2026 | (709) | |
2027 | (525) | |
2028 | (337) | |
Thereafter | (280) | |
Total | (3,678) | $ (3,995) |
Net Debt | ||
Remainder of 2024 | 60,688 | |
2025 | 79,049 | |
2026 | 60,441 | |
2027 | 64,650 | |
2028 | 36,025 | |
Thereafter | 87,278 | |
Net Debt | $ 388,131 |
DEBT - Fair Value (Details)
DEBT - Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
Fair value | $ 368,207 | $ 383,061 |
INVESTMENTS - Summary of debt s
INVESTMENTS - Summary of debt securities by major security type (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 126,690 | $ 134,321 |
Gross Unrealized Gains | 3 | 99 |
Gross Unrealized Losses | (265) | (180) |
Fair Value | 126,428 | 134,240 |
Municipal Debt Securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 6,981 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (5) | |
Fair Value | 6,976 | |
Corporate Debt Securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 62,525 | 59,222 |
Gross Unrealized Gains | 3 | 76 |
Gross Unrealized Losses | (146) | (50) |
Fair Value | 62,382 | 59,248 |
U.S. Government Agency Securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 64,165 | 68,118 |
Gross Unrealized Gains | 0 | 23 |
Gross Unrealized Losses | (119) | (125) |
Fair Value | 64,046 | 68,016 |
Certificates of Deposit | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Certificates of deposit | $ 6,351 | $ 6,887 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | $ 126,428 | $ 134,240 |
Municipal Debt Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | 6,976 | |
Corporate Debt Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | 62,382 | 59,248 |
U.S. Government Agency Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | 64,046 | 68,016 |
Recurring | ||
FAIR VALUE MEASUREMENTS | ||
Cash & Cash Equivalents | 28,427 | 46,279 |
Available-for-Sale Securities: | 126,428 | 134,240 |
Total Assets Measured at Fair Value on a Recurring Basis | 154,855 | 180,519 |
Recurring | Municipal Debt Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | 6,976 | |
Recurring | Corporate Debt Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | 62,382 | 59,248 |
Recurring | U.S. Government Agency Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | 64,046 | 68,016 |
Recurring | Level 1 | ||
FAIR VALUE MEASUREMENTS | ||
Cash & Cash Equivalents | 28,427 | 46,279 |
Available-for-Sale Securities: | 0 | 0 |
Total Assets Measured at Fair Value on a Recurring Basis | 28,427 | 46,279 |
Recurring | Level 1 | Municipal Debt Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | 0 | |
Recurring | Level 1 | Corporate Debt Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | 0 | 0 |
Recurring | Level 1 | U.S. Government Agency Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | 0 | 0 |
Recurring | Level 2 | ||
FAIR VALUE MEASUREMENTS | ||
Cash & Cash Equivalents | 0 | 0 |
Available-for-Sale Securities: | 126,428 | 134,240 |
Total Assets Measured at Fair Value on a Recurring Basis | 126,428 | 134,240 |
Recurring | Level 2 | Municipal Debt Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | 6,976 | |
Recurring | Level 2 | Corporate Debt Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | 62,382 | 59,248 |
Recurring | Level 2 | U.S. Government Agency Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | 64,046 | 68,016 |
Recurring | Level 3 | ||
FAIR VALUE MEASUREMENTS | ||
Cash & Cash Equivalents | 0 | 0 |
Available-for-Sale Securities: | 0 | 0 |
Total Assets Measured at Fair Value on a Recurring Basis | 0 | 0 |
Recurring | Level 3 | Municipal Debt Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | 0 | |
Recurring | Level 3 | Corporate Debt Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | 0 | 0 |
Recurring | Level 3 | U.S. Government Agency Securities | ||
FAIR VALUE MEASUREMENTS | ||
Available-for-Sale Securities: | $ 0 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 24.20% | 22.90% | |
Non-current liability recognized | $ 97,694 | $ 101,044 | |
Income tax receivable agreement liability | 10,611 | $ 3,250 | |
Payments to pre-IPO stockholders | $ 3,350 | $ 2,425 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | 1 Months Ended | 3 Months Ended | |||
Dec. 13, 2019 extension $ / shares shares | Jan. 31, 2023 shares | Mar. 31, 2024 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) | |
Class of Stock [Line Items] | |||||
Offering price total | $ | $ 11,596,000 | $ 15,048,000 | |||
Performance Shares | |||||
Class of Stock [Line Items] | |||||
Vesting period | 3 years | ||||
Common stock-shares authorized (in shares) | 259,095 | ||||
Performance Shares | Minimum | |||||
Class of Stock [Line Items] | |||||
Target level | 50% | ||||
Performance Shares | Maximum | |||||
Class of Stock [Line Items] | |||||
Target level | 150% | ||||
Amazon Agreement | |||||
Class of Stock [Line Items] | |||||
Term of agreement (in years) | 6 years | ||||
Number of extension option | extension | 2 | ||||
Term of renewal of agreement (in years) | 2 years | ||||
Threshold term of agreement (in years) | 10 years | ||||
Warrants issued (in shares) | 9,482,606 | ||||
Exercise price (in dollars per share) | $ / shares | $ 15.17 | ||||
Warrants vested (in shares) | 189,652 | ||||
Amazon Agreement | Warrants | |||||
Class of Stock [Line Items] | |||||
Warrants held (in shares) | 3,413,745 | 2,591,920 | |||
2022 Repurchase Program | |||||
Class of Stock [Line Items] | |||||
Remaining authorized repurchase amount | $ | $ 0 | ||||
Stocks repurchased (in shares) | 755,284 | 750,000 | |||
Offering price total | $ | $ 11,493,000 | $ 14,812,000 | |||
Accelerated share repurchases (in dollars per share) | $ / shares | $ 15.22 | $ 19.75 | |||
Repurchase program, authorized amount | $ | $ 25,000,000 | ||||
Stock repurchased (in shares) | 480,932 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Income tax examination, estimate of possible loss | $ 2,700 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | |
OPERATING SEGMENTS | ||
Number of operating segments | segment | 2 | |
Operating Revenues | $ 311,483 | $ 294,115 |
Non-Fuel Operating Expenses | 186,003 | 166,042 |
Aircraft Fuel | 70,304 | 72,290 |
Total Operating Expenses | 256,307 | 238,332 |
Operating Income (Loss) | 55,176 | 55,783 |
Interest Income | 2,448 | 2,741 |
Interest Expense | (11,112) | (8,630) |
Other, net | 46 | (212) |
Income Before Income Tax | 46,558 | 49,682 |
Passenger | ||
OPERATING SEGMENTS | ||
Operating Revenues | 287,535 | 270,754 |
Non-Fuel Operating Expenses | 160,700 | 140,637 |
Aircraft Fuel | 70,304 | 72,266 |
Total Operating Expenses | 231,004 | 212,903 |
Operating Income (Loss) | 56,531 | 57,851 |
Cargo | ||
OPERATING SEGMENTS | ||
Operating Revenues | 23,948 | 23,361 |
Non-Fuel Operating Expenses | 25,303 | 25,405 |
Aircraft Fuel | 0 | 24 |
Total Operating Expenses | 25,303 | 25,429 |
Operating Income (Loss) | $ (1,355) | $ (2,068) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 1 Months Ended |
May 07, 2024 aircraft | |
Subsequent Event | |
Subsequent Event [Line Items] | |
Number of purchased aircrafts previously under finance leases | 1 |