Sun Country Airlines Holdings, LLC (NASDAQ: SNCY)

Sun Country Airlines is a hybrid low cost air carrier that operates passenger and cargo services. The airline provides Scheduled Service and Charter flights to leisure and VFR travelers, while also offering cargo in kind (CMI) transportation for Amazon. Based in Minnesota, it serves destinations across the United States, Canada, Mexico, Central America and the Caribbean.

The company generates revenue primarily from passenger ticket sales for its Scheduled Service and Charter operations, ancillary fees such as baggage, seat selection and on board sales, and cargo service fees under its CMI agreement with Amazon. Additional revenue comes from co branded credit card programs, vacation packages and other miscellaneous sources. Its customer base includes leisure travelers, charter clients such as sports teams and casinos, and Amazon for cargo flights.

The company operates through the following segments: Passenger and Cargo.

• Passenger: This segment encompasses Scheduled Service and Charter activities, providing air transportation, ancillary products and services, and vacation packages to leisure and VFR passengers as well as charter customers.

• Cargo: This segment operates Boeing 737 800 freighters for Amazon under CMI contracts, delivering cargo transportation services while Amazon supplies the aircraft and covers fuel and loading costs.

Sun Country Airlines holds a niche position as a hybrid low cost carrier that combines the cost structure of ultra low cost carriers with a higher quality product, competing against legacy airlines such as Delta Air Lines and American Airlines, low cost carriers like Southwest Airlines and Spirit Airlines, and charter only operators. Its competitive advantages include an agile peak demand scheduling strategy, a single family mid life Boeing 737 fleet that lowers ownership costs, a strong market share at Minneapolis St. Paul Airport, and a long term cargo relationship with Amazon.

The airline serves a diverse customer base that includes leisure and VFR travelers, Department of Defense charter clients, collegiate and professional sports teams, casinos, Major League Soccer teams, and Amazon for its cargo operations.