Document

Sun Country很高興宣佈我們連續第九個季度盈利，按照GAAP每股收益爲 $0.04 調整後每股收益爲 $0.06(2)，”Sun Country首席執行官Jude Bricker說。“儘管在本季度受到Crowdstrike中斷和颶風的影響，我們依然實現了 $249 美元的總收入，這是Sun Country有史以來第三季度最高的。包機業務和貨運業務的強勁增長有助於彌補較低的定期航班收入，展示了我們多元化業務模式的有效性。此外，我們的GAAP營業利潤率爲 5.0% ，調整後的營業利潤率爲 5.6%(2) 超過了我們指導範圍的最高端。雖然第三季度單位收入低於去年，但我們開始看到9月份預訂票價同比有利，並持續到第四季度。一如既往，我們要感謝我們的員工在一個充滿挑戰的運營時期中所付出的努力和奉獻。”

截至2024年9月30日，Sun Country報告淨利潤約爲200萬美元，稅前收入爲300萬美元，營業收入爲24900萬美元。調整後的稅前收入(2) 在該季度，調整後稅前收入約爲400萬美元。該季度的GAAP營業收入爲1200萬美元，而調整後的營業收入(2) 爲1400萬美元，GAAP營業利潤率爲5.0%，調整後的營業利潤率(2) 爲5.6%.

「我們第三季度的業績反映了我們多元化業務模式持續的盈利能力，」 Dave Davis，總裁兼首席財務官說。“每個區塊小時的貨物收入同比增長了16.0%，而第三季度包機收入輕鬆超過了包機區塊小時的增長。這種實力部分抵消了我們經歷的第三季度較弱的定期服務需求環境。我們預計這些業務的實力將持續存在，同時我們也看到第四季度和2025年定期服務單位收入的改善趨勢。我們繼續展現出紮實的成本控制，儘管我們的根據美國通用會計準則的營業支出增長了3.1% ，而總區塊小時在第三季度增長了3.8%調整後的CASM(3) 同比增長了 3.7% ，主要是由定期服務能力減少所推動的。我們已經根據當前需求權衡了我們的定期服務能力，預計第四季度定期服務ASMs的增長幅度將略超過去年的3%。我們正在準備在2025年接收更多貨運飛機，並且仍然預計第一架飛機將於2025年3月底或4月初投入運營，從而讓我們充分利用旺季的第一季度客運需求的強勁表現。”

2024年第三季度系統飛行時間同比增長3.8%。所有這些增長均分配給了乘客板塊，導致了 5.8% 預定服務航班地裏里程和包機飛行時間增長了1.7%。預定服務航班地裏里程預計將在2024年第四季度比2023年第四季度增長略高於3%。由於計劃的大量維護事件和颶風對東南部貨運業務的影響，貨運飛行時間在第三季度同比下降了3.6%。

第三季度國內市場繼續受到產能過剩的影響，這給單位收入帶來了壓力。該公司報告第三季度總收入爲2.49億美元，比2023年第三季度增長0.2％。定期服務 TRASM(4) 10.42美分同比下降11.1％，而定期服務ASM增長5.8％。2024 年第三季度每位定期乘客的總票價爲 141 美元，低於第三由於定期航班乘客增長2.0％，2023年季度增長了7.8％。該公司的第三季度包機服務收入爲5100萬美元，同比增長7.0％，儘管包機時長僅增長了1.7％，而且受到了客戶燃油成本報銷減少的影響。

第三季度CASm下降 1.9% 而調整後的CASM(3) 增加同比增長3.7%。總GAAP營業費用同比增加3.1%，主要是由於總飛行小時增加。 3.8% 增長速度快于飛行水平的主要非燃油費用包括地面處理費，增長了23.3%，主要是由於旅客部門出發次數增加5%以及外包地勤站點的費率提高。由於機場用於限制費率上漲的COVID援助到期，着陸費和機場租金增加了14.5%。


(in millions - amounts may not recalculate due to rounding)	September 30, 2024		December 31, 2023
	(Unaudited)
Cash and Cash Equivalents	$	56.8	$	46.3
Available-for-Sale Securities	83.3		134.2
Amount Available Under Revolving Credit Facility	24.7		24.7
Total Liquidity	$	164.8	$	205.2

(in millions - amounts may not recalculate due to rounding)	September 30, 2024		December 31, 2023
	(Unaudited)
Total Debt, net	$	351.8	$	401.6
Finance Lease Obligations	298.5		277.3
Operating Lease Obligations	21.4		18.8
Total Debt, net, and Lease Obligations	671.6		697.7
Cash and Cash Equivalents	56.8		46.3
Available-for-Sale Securities	83.3		134.2
Net Debt	$	531.5	$	517.2

Sun Country Airlines will host a conference call to discuss its third quarter 2024 results at 8:30 a.m. Eastern Time on Thursday, October 31, 2024. A live broadcast of the conference call will be available via the investor relations section of Sun Country Airlines’ website at https://ir.suncountry.com/news-events/events-and-presentations. The online replay will be available on the same website approximately one hour after the call.

Sun Country Airlines is a new breed of hybrid low-cost air carrier, whose mission is to connect guests to their favorite people and places, to create lifelong memories and transformative experiences. Sun Country dynamically deploys shared resources across our synergistic scheduled service, charter, and cargo businesses. Based in Minnesota, we focus on serving leisure and visiting friends and relatives (“VFR”) passengers and charter customers and providing cargo service to Amazon, with flights throughout the United States and to destinations in Mexico, Central America, Canada, and the Caribbean. For photos, b-roll and additional company information, visit https://www.stories.suncountry.com/multimedia.


1 -			Records begin in January 2017
2 -			See additional details, including reconciliations to the most comparable GAAP measures, in the section titled “Non-GAAP financial measures”
3 -			Adjusted CASM is a non-GAAP measure derived from CASM by excluding fuel costs, non-cash management stock compensation expense, costs arising from its cargo operations, depreciation and amortization recognized on certain assets that generate lease income, certain commissions, and other costs of selling its vacations product from this measure. See table titled “Reconciliation of CASM to Adjusted CASM”
4 -			Scheduled Service TRASM includes Schedule Service revenue, Ancillary revenue, and ASM generating revenue classified within Other Revenue on the Condensed Consolidated Statement of Operations / Scheduled Service ASMs. Other Revenue includes rental revenue associated with certain assets that generate lease income of approximately $10.1 million and $5.9 million in the three months ended September 30, 2024 and 2023, respectively, and $29.2 million and $11.7 million in the nine months ended September 30, 2024 and 2023, respectively, which is not included.
5 -			Total liquidity = cash and cash equivalents + available-for-sale securities + amount available under revolver
6 -			Net debt = current portion of long-term debt + long-term debt + finance lease obligations + operating lease obligations – cash and cash equivalents - available-for-sale securities

This press release contains forward-looking statements, which involve risks and uncertainties. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management, and expected market growth are forward-looking statements. The forward-looking statements are relating to:

These forward-looking statements reflect our views with respect to future events as of the date of this press release and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release and, except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release. We anticipate that subsequent events and developments will cause our views to change. You should read this press release completely and with the understanding that our actual future results may be materially different from what we expect. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may undertake. We qualify all of our forward-looking statements by these cautionary statements. Additional information concerning certain factors is contained in the Company’s Securities and Exchange Commission filings, including but not limited to the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.

We sometimes use information that is derived from the Condensed Consolidated Financial Statements, but that is not presented in accordance with GAAP. We believe these non-GAAP measures provide a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. We believe certain charges included in our operating expenses on a GAAP basis make it difficult to compare our current period results to prior periods as well as future periods and guidance. The tables below show a reconciliation of non-GAAP financial measures used in this document to the most directly comparable GAAP financial measures.


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts) (Unaudited- amounts may not recalculate due to rounding)


	Three Months Ended September 30,
	2024		2023		% Change
Operating Revenues:
Scheduled Service	$	83,784	$	96,483	(13.2)
Charter	50,769		47,437		7.0
Ancillary	73,211		70,435		3.9
Passenger	207,764		214,355		(3.1)
Cargo	29,165		26,059		11.9
Other	12,541		8,462		48.2
Total Operating Revenue	249,470		248,876		0.2

Operating Expenses:
Aircraft Fuel	54,737		61,179		(10.5)
Salaries, Wages, and Benefits	80,919		72,541		11.5
Aircraft Rent	—		22		(100.0)
Maintenance	15,973		15,330		4.2
Sales and Marketing	7,748		7,569		2.4
Depreciation and Amortization	23,754		22,762		4.4
Ground Handling	11,568		9,382		23.3
Landing Fees and Airport Rent	15,979		13,958		14.5
Other Operating, net	26,410		27,127		(2.6)
Total Operating Expenses	237,088		229,870		3.1
Operating Income	12,382		19,006		(34.9)

Non-operating Income (Expense):
Interest Income	1,659		2,480		(33.1)
Interest Expense	(11,049)		(11,403)		(3.1)
Other, net	12		(15)		NM
Total Non-operating Expense, net	(9,378)		(8,938)		4.9

Income before Income Tax	3,004		10,068		(70.2)
Income Tax Expense	662		2,477		(73.3)
Net Income	$	2,342	$	7,591	(69.1)

Net Income per share to common stockholders:
Basic	$	0.04	$	0.14	(71.4)
Diluted	$	0.04	$	0.13	(69.2)
Shares used for computation:
Basic	52,876,339		55,435,386		(4.6)
Diluted	54,780,672		58,595,646		(6.5)


	Nine Months Ended September 30,
	2024		2023		% Change
Operating Revenues:
Scheduled Service	$	313,056	$	360,607	(13.2)
Charter	149,090		143,250		4.1
Ancillary	236,677		205,633		15.1
Passenger	698,823		709,490		(1.5)
Cargo	78,560		74,437		5.5
Other	37,951		20,150		88.3
Total Operating Revenue	815,334		804,077		1.4

Operating Expenses:
Aircraft Fuel	187,229		185,829		0.8
Salaries, Wages, and Benefits	242,516		223,890		8.3
Aircraft Rent	—		2,281		(100.0)
Maintenance	50,129		44,311		13.1
Sales and Marketing	26,819		26,005		3.1
Depreciation and Amortization	71,194		64,577		10.2
Ground Handling	32,090		28,299		13.4
Landing Fees and Airport Rent	44,431		36,847		20.6
Other Operating, net	81,003		81,663		(0.8)
Total Operating Expenses	735,411		693,702		6.0
Operating Income	79,923		110,375		(27.6)

Non-operating Income (Expense):
Interest Income	5,907		7,766		(23.9)
Interest Expense	(33,238)		(31,272)		6.3
Other, net	55		(370)		NM
Total Non-operating Expense, net	(27,276)		(23,876)		14.2

Income before Income Tax	52,647		86,499		(39.1)
Income Tax Expense	13,180		19,963		(34.0)
Net Income	$	39,467	$	66,536	(40.7)

Net Income per share to common stockholders:
Basic	$	0.75	$	1.19	(37.0)
Diluted	$	0.72	$	1.12	(35.7)
Shares used for computation:
Basic	52,866,797		56,051,173		(5.7)
Diluted	54,990,437		59,281,819		(7.2)


	Three Months Ended September 30,
	2024		2023		% Change
Scheduled Service Statistics:
Revenue passenger miles (RPMs) – thousands	1,288,460		1,252,583		2.9
Available seat miles (ASMs) – thousands	1,530,058		1,446,462		5.8
Load factor	84.2%		86.6%		(2.4)	(3)
Revenue passengers carried	1,112,455		1,090,172		2.0
Departures	7,259		6,878		5.5
Block hours	21,416		19,935		7.4
Scheduled service TRASM(1) - cents	10.42		11.72		(11.1)
Average base fare per passenger	$	75.31	$	88.50	(14.9)
Ancillary revenue per passenger	$	65.81	$	64.61	1.9
Total fare per passenger	$	141.13	$	153.11	(7.8)
Fuel gallons - thousands	16,565		15,536		6.6

Charter Statistics:
Departures	2,809		2,688		4.5
Block hours	5,366		5,274		1.7
Available seats miles (ASMs) - thousands	328,142		322,722		1.7
Fuel gallons - thousands	3,525		3,513		0.3

Cargo Statistics:
Departures	3,519		3,432		2.5
Block hours	8,957		9,287		(3.6)

Total System Statistics:
Average passenger aircraft	43.6		42.0		3.8
Passenger aircraft – end of period	44		42		4.8
Cargo aircraft – end of period	12		12		—
Leased aircraft – end of period	7		5		40.0
Available seat miles (ASMs) – thousands	1,884,889		1,791,485		5.2
Departures	13,730		13,128		4.6
Block hours	36,191		34,874		3.8
Daily utilization – hours	6.8		6.6		3.0
Average stage length – miles	1,001		1,005		(0.4)
Total revenue per ASM (TRASM) - cents	11.15		12.11		(7.9)
Cost per ASM (CASM) - cents	12.58		12.83		(1.9)
Adjusted CASM(2) - cents	8.04		7.75		3.7
Fuel gallons - thousands	20,344		19,262		5.6
Fuel cost per gallon	$	2.69	$	3.19	(15.7)
Employees at end of period	2,965		2,692		10.1


	Nine Months Ended September 30,
	2024		2023		% Change
Scheduled Service Statistics:
Revenue passenger miles (RPMs) – thousands	4,335,623		3,900,975		11.1
Available seat miles (ASMs) – thousands	5,098,876		4,489,968		13.6
Load factor	85.0%		86.9%		(1.9)	(3)
Revenue passengers carried	3,437,005		3,093,536		11.1
Departures	22,109		19,456		13.6
Block hours	70,312		61,438		14.4
Scheduled service TRASM(1) - cents	10.95		12.80		(14.5)
Average base fare per passenger	$	91.08	$	116.57	(21.9)
Ancillary revenue per passenger	$	68.86	$	66.47	3.6
Total fare per passenger	$	159.95	$	183.04	(12.6)
Fuel gallons - thousands	54,634		48,046		13.7

Charter Statistics:
Departures	7,638		7,816		(2.3)
Block hours	15,355		15,994		(4.0)
Available seats miles (ASMs) - thousands	937,057		961,953		(2.6)
Fuel gallons - thousands	10,558		11,063		(4.6)

Cargo Statistics:
Departures	9,726		9,643		0.9
Block hours	25,008		25,633		(2.4)

Total System Statistics:
Average passenger aircraft	42.6		41.8		1.9
Passenger aircraft – end of period	44		42		4.8
Cargo aircraft – end of period	12		12		—
Leased aircraft – end of period	7		5		40.0
Available seat miles (ASMs) – thousands	6,108,695		5,516,826		10.7
Departures	39,879		37,295		6.9
Block hours	111,908		104,188		7.4
Daily utilization – hours	7.4		6.9		7.2
Average stage length – miles	1,100		1,088		1.1
Total revenue per ASM (TRASM) - cents	11.58		13.01		(11.0)
Cost per ASM (CASM) - cents	12.04		12.57		(4.2)
Adjusted CASM(2) - cents	7.51		7.56		(0.7)
Fuel gallons - thousands	65,884		59,734		10.3
Fuel cost per gallon	$	2.86	$	3.12	(8.3)
Employees at end of period	2,965		2,692		10.1


	September 30, 2024		December 31, 2023		% Change
	(Unaudited)
Cash & Cash Equivalents	$	56.8	$	46.3	22.7
Other Current Assets	169.2		225.1		(24.8)
Total Current Assets	226.0		271.4		(16.7)
Total Property & Equipment, net	993.1		969.0		2.5
Other	390.7		383.3		1.9
Total Assets	1,609.9		1,623.6		(0.8)

Air Traffic Liabilities	131.5		158.0		(16.8)
Current Finance Lease Obligations	42.2		44.8		(5.8)
Current Operating Lease Obligations	3.2		2.2		45.5
Current Maturities of Long-Term Debt, net	75.9		74.2		2.3
Income Tax Receivable Agreement Liability	9.5		3.3		187.9
Other Current Liabilities	118.5		136.2		(13.0)
Total Current Liabilities	380.8		418.6		(9.0)
Finance Lease Obligations	256.3		232.5		10.2
Operating Lease Obligations	18.2		16.6		9.6
Long-Term Debt, net	275.9		327.5		(15.8)
Income Tax Receivable Agreement Liability	88.2		97.8		(9.8)
Other	38.0		16.2		134.6
Total Liabilities	1,057.3		1,109.2		(4.7)

Total Stockholders’ Equity	$	552.5	$	514.4	7.4


	Nine Months Ended September 30,
	2024		2023		% Change
Net Cash Provided by Operating Activities	$	74.3	$	102.7	(27.7)

Purchases of Property & Equipment	(42.6)		(210.6)		(79.8)
Other, net	63.6		32.4		96.3
Net Cash Provided by (Used in) Investing Activities	20.9		(178.3)		111.7

Common Stock Repurchases	(11.5)		(55.1)		(79.1)
Proceeds from Borrowing	10.0		119.2		(91.6)
Repayment of Finance Lease Obligations	(26.2)		(16.4)		59.8
Repayment of Borrowings	(60.8)		(35.5)		71.3
Other, net	(3.0)		(1.7)		76.5
Net Cash Provided by (Used in) Financing Activities	(91.5)		10.6		NM

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	3.8		(65.0)		105.8
Cash, Cash Equivalents and Restricted Cash – Beginning of the Period	63.7		102.9		(38.1)
Cash, Cash Equivalents and Restricted Cash – End of the Period	$	67.4	$	37.9	77.8

Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted Net Income per share, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures included as supplemental disclosure because we believe they are useful indicators of our operating performance. Derivations of Operating Income and Net Income are well recognized performance measurements in the airline industry that are frequently used by our management, as well as by investors, securities analysts and other interested parties in comparing the operating performance of companies in our industry.

The measures described above have limitations as analytical tools. Some of the limitations applicable to these measures include: they do not reflect the impact of certain cash and non-cash charges resulting from matters we consider not to be indicative of our ongoing operations; and other companies in our industry may calculate these non-GAAP measures differently than we do, limiting each measure’s usefulness as a comparative measure. Because of these limitations, the following non-GAAP measures should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP and may not be the same as or comparable to similarly titled measures presented by other companies due to the possible differences in the method of calculation and in the items being adjusted.

For the aforementioned reasons, Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted Income Before Income Tax, Adjusted Pre-tax Margin, Adjusted Net Income, Adjusted Net Income per Share, Adjusted EBITDA and Adjusted EBITDA Margin have significant limitations which affect their use as indicators of our profitability. Accordingly, readers are cautioned not to place undue reliance on this information.


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Operating Revenue	$	249.5		$	248.9		$	815.3		$	804.1
Operating Income	12.4			19.0			79.9			110.4
Stock Compensation Expense	1.5			1.0			4.6			8.1
Adjusted Operating Income	$	13.9		$	20.0		$	84.5		$	118.5

Operating Income Margin	5.0		%	7.6		%	9.8		%	13.7		%
Adjusted Operating Income Margin	5.6		%	8.1		%	10.4		%	14.7		%


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Net Income	$	2.3		$	7.6		$	39.5		$	66.5
Add: Provision for Income Tax Expense	0.7			2.5			13.2			20.0
Income Before Income Tax, as reported	3.0			10.1			52.6			86.5
Pre-tax margin	1.2		%	4.0		%	6.5		%	10.8		%

Stock Compensation Expense	1.5			1.0			4.6			8.1
Tax Receivable Agreement adjustment (1)	—			—			—			(0.4)
Secondary offering costs	—			—			—			0.6
Adjusted Income Before Income Tax	$	4.5		$	11.1		$	57.2		$	94.9

Adjusted Pre-tax margin	1.8		%	4.5		%	7.0		%	11.8		%


Reconciliation of GAAP Net Income and Earnings per Share to Adjusted Net Income and Adjusted Earnings per Share Dollars and shares in millions, except for per share – Unaudited - amounts may not recalculate due to rounding
The following table presents the reconciliation of GAAP net income and earnings per share to adjusted net income and adjusted earnings per share.


	Three Months Ended September 30,
	2024				2023
	Dollars		Per Share - diluted		Dollars		Per Share - diluted
Net Income	$	2.3	$	0.04	$	7.6	$	0.13
Stock Compensation Expense	1.5		0.03		1.0		0.02
Income tax effect of adjusting items, net (1)	(0.3)		(0.01)		(0.2)		—
Adjusted Net Income	$	3.5	$	0.06	$	8.4	$	0.14

Diluted share count	54.8				58.6


	Nine Months Ended September 30,
	2024				2023
	Dollars		Per Share - diluted		Dollars		Per Share - diluted
Net Income	$	39.5	$	0.72	$	66.5	$	1.12
Stock Compensation Expense	4.6		0.08		8.1		0.14
Tax Receivable Agreement adjustment (2)	—		—		(0.4)		(0.01)
Secondary offering costs	—		—		0.6		0.01
Income tax effect of adjusting items, net (1)	(1.1)		(0.02)		(2.0)		(0.03)
Adjusted Net Income	$	43.0	$	0.78	$	72.9	$	1.23

Diluted share count	55.0				59.3


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Net Income	$	2.3		$	7.6		$	39.5		$	66.5
Interest Income	(1.7)			(2.5)			(5.9)			(7.8)
Interest Expense	11.0			11.4			33.2			31.3
Stock Compensation Expense	1.5			1.0			4.6			8.1
Tax Receivable Agreement adjustment (1)	—			—			—			(0.4)
Secondary offering costs	—			—			—			0.6
Provision for Income Taxes	0.7			2.5			13.2			20.0
Depreciation and Amortization	23.8			22.8			71.2			64.6
Adjusted EBITDA	$	37.6		$	42.8		$	155.7		$	183.0

Adjusted EBITDA margin	15.1		%	17.2		%	19.1		%	22.8		%

Adjusted CASM is a non-GAAP measure derived from CASM by excluding fuel costs, costs related to our cargo operations, stock based compensation, depreciation and amortization recognized on certain assets that generate lease income, certain commissions and other costs of selling our vacations product from this measure as these costs are unrelated to our airline operations and improve comparability to our peers. Adjusted CASM is an important measure used by management and by our board of directors in assessing quarterly and annual cost performance. Adjusted CASM is also a measure commonly used by industry analysts and we believe it is an important metric by which they compare our airline to others in the industry, although other airlines may exclude certain other costs in their calculation of Adjusted CASM. The measure is also the subject of frequent questions from investors.

Adjusted CASM excludes fuel costs. By excluding volatile fuel costs that are outside of our control from our unit metrics, we believe that we have better visibility into the results of operations and our non-fuel cost initiatives. Our industry is highly competitive and is characterized by high fixed costs, so even a small reduction in non-fuel operating costs can lead to a significant improvement in operating results. In addition, we believe that all domestic carriers are similarly impacted by changes in jet fuel costs over the long run, so it is important for management and investors to understand the impact and trends in company-specific cost drivers, such as labor rates, aircraft and maintenance costs, and productivity, which are more controllable by management.

We have excluded costs related to the cargo operations and depreciation recognized on our aircraft and flight equipment held for operating lease as these operations do not create ASMs. We have entered into a series of aircraft-related transactions where we act as an aircraft lessor. As of September 30, 2024, we leased or subleased seven aircraft. Depreciation expense on these aircraft materially began during the three months ended June 30, 2023. Adjusted CASM further excludes other adjustments, as defined in the relevant reporting period, that are not representative of the ongoing costs necessary to our airline operations and may improve comparability between periods. We also exclude stock compensation expense when computing Adjusted CASM. The Company’s compensation strategy includes the use of stock-based compensation to attract and retain employees and executives and is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, stock-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any period.

As derivations of Adjusted CASM are not determined in accordance with GAAP, such measures are susceptible to varying calculations and not all companies calculate the measures in the same manner. As a result, derivations of Adjusted CASM as presented may not be directly comparable to similarly titled measures presented by other companies. Adjusted CASM should not be considered in isolation or as a replacement for CASM. For the aforementioned reasons, Adjusted CASM has significant limitations which affect its use as an indicator of our profitability. Accordingly, readers are cautioned not to place undue reliance on this information.


	Three Months Ended September 30,
	2024			2023
	Operating Expenses - mm		Per ASM (cents)	Operating Expenses - mm		Per ASM (cents)
CASM	$	237.1	12.58	$	229.9	12.83
Less:
Aircraft Fuel	54.7		2.90	61.2		3.41
Stock Compensation Expense	1.5		0.08	1.0		0.06
Cargo expenses, not already adjusted above	27.1		1.45	26.4		1.48
Sun Country Vacations	0.2		0.01	0.2		0.01
Leased Aircraft, Depreciation and Amortization Expense	2.0		0.10	2.2		0.12
Adjusted CASM	$	151.5	8.04	$	138.8	7.75

Available seat miles (ASMs) - mm	1,884.9			1,791.5


	Nine Months Ended September 30,
	2024			2023
	Operating Expenses - mm		Per ASM (cents)	Operating Expenses - mm		Per ASM (cents)
CASM	$	735.4	12.04	$	693.7	12.57
Less:
Aircraft Fuel	187.2		3.06	185.8		3.37
Stock Compensation Expense	4.6		0.07	8.1		0.14
Cargo expenses, not already adjusted above	77.4		1.28	77.2		1.40
Sun Country Vacations	1.0		0.02	0.9		0.02
Leased Aircraft, Depreciation and Amortization Expense	6.3		0.10	4.5		0.08
Adjusted CASM	$	458.9	7.51	$	417.2	7.56

Available seat miles (ASMs) - mm	6,108.7			5,516.8


	Q4 2024	H/(L) vs Q4 2023
Total revenue - millions	$250 to $260	2% to 6%
Economic fuel cost per gallon	$2.47	(20)%
Operating income margin - percentage	7% to 9%	0pp to 2pp
Effective tax rate	23%
Total system block hours - thousands	36.5 to 37.5	2% to 5%


	截至9月30日的三個月
（未經審計）（以百萬計，除每股金額外）	2024		2023		百分比變動
營業總收入	$	249.5	$	248.9	0.2
營業收入	12.4		19.0		(34.9)
稅前收入	3.0		10.1		(70.2)
淨利潤	2.3		7.6		(69.1)
攤薄每股收益	$	0.04	$	0.13	(69.2)


	截至9月30日的九個月
（未經審計）（以百萬計，除每股金額外）	2024		2023		百分比變動
營業總收入	$	815.3	$	804.1	1.4
營業收入	79.9		110.4		(27.6)
稅前收入	52.6		86.5		(39.1)
淨利潤	39.5		66.5		(40.7)
攤薄每股收益	$	0.72	$	1.12	(35.7)


KEY OPERATING STATISTICS - amounts may not recalculate due to rounding


SUMMARY BALANCE SHEET (Dollars in millions) (amounts may not recalculate due to rounding)


SUMMARY CASH FLOW (Dollars in millions) (Unaudited - amounts may not recalculate due to rounding)


Reconciliation of GAAP Operating Income to Adjusted Operating Income Dollars in millions – Unaudited - amounts may not recalculate due to rounding
The following table presents the reconciliation of GAAP operating income to adjusted operating income.


Reconciliation of GAAP Income Before Income Tax to Adjusted Income Before Income Tax Dollars in millions – Unaudited - amounts may not recalculate due to rounding
The following table presents the reconciliation of GAAP income before income tax to adjusted income before income tax.


(1)			This represents the adjustment to the TRA for the period, which is recorded in Non-Operating Income (Expense)


(1)			The tax effect of adjusting items, net is calculated at the Company’s statutory rate for the application period
(2)			This represents the adjustment to the TRA for the period, which is recorded in Non-Operating Income (Expense)


Reconciliation of GAAP Net Income to Adjusted EBITDA Dollars in millions – Unaudited - amounts may not recalculate due to rounding
The following tables present the reconciliation of net income to adjusted EBITDA for the periods presented below.


Reconciliation of CASM to Adjusted CASM Amounts may not recalculate due to rounding, dollar amounts in millions
The following table presents the reconciliation of CASM to Adjusted CASM.