Just a few months before the airline industry collapsed, Sun Country and Amazon had entered into a partnership that would see the former fly under the Amazon Air brand, transporting packages around the country on behalf of the e-commerce giant. We are committed to helping the company continue growing and achieving its objectives through this modern contract, which will ensure the airline is able to retain and attract pilots.. By clicking Sign up, you agree to receive marketing emails from Insider "[Amazon] had airplanes, and so they needed the support of a carrier that could ramp-up really rapidly and support the kind of growth profile that they had. Paul (MSP) Base, Minnesota, Management - Director of Quality Assurance, Maintenance - Technical Services Reliability Analyst, Search all aviation and aerospace jobs by clicking, Unlike other web sites, JSfirm's service is free for job seekers. Plus, for Amazon, the partnership allows it to continue on its rapid cargo growth. So, over time the airline is turning cash items into non-cash items.
For the second quarter, the hybrid carrier expects fuel prices of $3.50 per gallon but the IATA monitor shows fuel prices in North America of $4.20 per gallon which is down from the prior month. What I'm liking about Sun Country Airlines is the combination of scheduled services, cargo and charter flights. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety.
That upbeat prospect gained another leg up as airlines revised their expectations upwards. Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Second quarter outlook looks somewhat weak despite high demand. Their number one focus, as they've expressed to us deliver products reliably, and that's what we give.". The airline has a lot of potential, but also depends on scaling up operations to unlock further scale benefits because the current demand-and-cost environment is not what's going to unlock that potential. This helps keep crew training costs down, as well. For a company that has been doing 10% adjusted margins this quarter that's disappointing. One element that I was missing or I felt wasnt discussed in detail was how crew challenges are being dealt with in terms of really hiring people and training them. According to the Air Line Pilots Association, 93% of the eligible pilots participating voted to ratify the agreement, which brings their pay rates, retirement contributions, commuter policies and work rules in line with those of industry peers. The other thing is, we get really good reliability out of older 737-800s, which is their fleet type. Sun Country Airlines Q1 2022 results (Sun Country Airlines ). So, we did see significant improvement on an adjusted basis and we see that Sun Country Airlines was profitable in Q1 last year as well as this year. Additionally, last year there was payroll support that reduced the cost load by $26.9 million. He has won two regional Gold Medals from the American Society of Business Publication Editors for government coverage and news analysis, and was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. , Sun Country Airlines Cargo Sales Managers Phone number / Address / Email. If they were going to other 737 operators like Alaska and Southwest that were really large, they wouldn't be able to give the kind of attention that we give them. British Midland International (bmi regional), COVID19 Country-wise Air Travel procedures, Sun Country Airlines phone number, address. The company had a minimal learning curve to get the jets flying for Amazon. You may upload one to your account now. as well as other partner offers and accept our, Stephen Brashear / Stringer / Getty Images, Visit Business Insider's homepage for more stories, Why an airline CEO thinks Hawaii is poised for a major tourism boom after the pandemic, but his won't be part of it, Big airlines are flying 'ghost planes' stuffed with packages now that the demand for passenger flights has cratered, Inside the massive effort by US airlines to transport medical supplies and mail on cargo-only flights using passenger jets. Jude Bricker took over as chief executive at Sun Country Airlines in 2017 and during his tenure, he's overseen some monumental shifts at the airline. Mr. Bricker stated the following on the cargo deal.
This agreement represents a milestone for both Sun Country and our pilots. Sun Country Airlines was profitable during the first quarter. Sun Country Airlines guidance (Sun Country Airlines). My main concern with airlines has always been that even if the prospects are good, there's always something keeping prices down and while I have been criticized for that view it seems that with rising recession fears and inflation things dont look good for airline stocks even when they are currently executing well. India's Star Air To Lease 2 Embraer E175s From Nordic Aviation Capital, The Amazon Sun Country Partnership: Why It Works, pushed through a transition from full service to ultra-low-cost, cargo airlines usually will fly older aircraft, partnership allows it to continue on its rapid cargo growth, Avelo Airlines Partners With Alliance Aviation To Support Pilot Recruitment Drive, June Was Exceptional For Singapore Airlines And Scoot. even if the prospects are good, there's always something keeping prices down and while I have been criticized for that view it seems that with rising recession fears and inflation things dont look good for airline stocks even when they are currently executing well. Some airlines operate passenger services alongside a cargo brand. Fares should be at record highs and many airlines are expecting that regardless of the fuel price environment margins will be strong but Sun Country Airlines has guided for a disappointing quarter ahead in my view. However, Sun Country is not keen on moving in that direction, as Mr. Bricker stated on a cargo business: "It's very difficult. Reconstructed Boeing 747: The Crash Of TWA Flight 800, Hyderabad Bound IndiGo Flight Diverted To Pakistans Jinnah Airport Amid Technical Defect, SAS & Pilots Union Show Signs Of Imminent Agreement, Then There Were 15: Inside The Last Remaining Airline Airbus A318s, United Airlines Reports First Quarterly Profit Since 2019, 33 Daily Flights In Its Heyday: Inside The Doha-Dubai Route, What United's Fleet Could Look Like In 10 Years, Interesting: Ethiopian Airlines Is The Largest Operator Between Africa & Asia, Trip Report: American Airlines Airbus A321T Business Class New York JFK to San Francisco, Malaysia Airlines Unveils Its New Boeing 737-800 Cabin, Nearly 350 Narrowbodies: The Alaska Airlines Fleet In 2022, The Story Of Short-Lived Canadian Carrier Greyhound Air. A rough calculation shows that around $26 million of the $40.27 million increase in aircraft fuel costs is related to higher jet fuel prices. Subscribe Now, Download the FreightWaves app for unlimited access to news and insights (Android & iOS Available), Copyright 2022, All Rights Reserved, FreightWaves, Inc, Pilots ratify 4-year labor deal at Amazon cargo carrier Sun Country, Whittling away: Indicted Nikola founder dumps 7M more shares, Breakthroughs and misconceptions: 9 questions with ChargePoints Rich Mohr, Cold one: Manhattan Beer Distributors all in on electrifying beverage trucks, Struggling battery startup Romeo Power taps veteran executive for CEO. Please disable your ad-blocker and refresh. The transition to low-cost spearheaded by the former Allegiant Air executive was intended to be the company's way forward after being purchased by Apollo Global Management. So you can either be a charter operator in that space and subject to the whims of those customers, or you can partner with somebody, and that's what we did.". Our Story, Eric is the Supply Chain and Air Cargo Editor at FreightWaves. Revenues rose by 78% year-over-year driven by higher passenger volumes and mostly focused toward growth in the scheduled services segment. Amazon started its own air cargo operations in 2016 as its business expanded with the introduction of Amazon Prime. If you have an ad-blocker enabled you may be blocked from proceeding. The pilots that it allocates for domestic services are also able to fly the cargo jets. Bricker told Business Insider just how the decision is helping Sun Country, one of the smallest of America's major airlines, survive the pandemic. During the quarter aircraft rents decreased by 43%, this is driven by Sun Country Airlines transitioning from operating leases where the aircraft should be returned to the lessor by the end of the lease to financial leases where the aircraft is the airlines property by the end of the lease term. Air freight is really concentrated. Brian Lethert, chairman of ALPAs Sun Country Master Executive Council. Cited by TIME and Intelligent Aerospace, among others, and interviewed by major outlet NPR, Jays focus on route planning and fleet developments allow him to dig deeper into the stories behind the headlines. The partnership was announced in December, just a month before the novel coronavirus was widely known. Based in Washington DC, United States. The quick resolution of talks is certain to please Amazon, which abhors uncertainty and the possibility of unhappy pilots creating operational inefficiencies by working minimum hours or calling in sick. The Amazon business was a key factor in Sun Countrys ability to keep from furloughing pilots during the COVID-19 pandemic when most airlines cut staff. This will lead to margins of 5% to 9% which is a reduction from the 10% margin in Q2 2019 and Q1 2022. In-depth insights from an expert on the aerospace and airline industries, Dhierin is a leading contributor covering the aerospace industry on Seeking Alpha and the founder of.
I like the scheduled service-cargo-charter set up that Sun Country Airlines has and I believe that it allows the company to deploy assets based on demand and provides some stability due to the different nature of each of the segments. For example, Cathay Pacific flies passengers under its main brand and cargo under the Cathay Pacific Cargo brand. Indeed, if you dont have the staff to fly the aircraft there isnt much you can do and flying at a loss doesnt sound attractive at all. The big question is whether the demand environment remains as robust as seen today and whether Sun Country Airlines can grow its fleet and staff to turn growth into profits. Amazon doesn't directly operate the blue, white, and gray freighters with "Prime" emblazoned across the side. Source: FlightAware and Planespotters.net, Read More: Why an airline CEO thinks Hawaii is poised for a major tourism boom after the pandemic, but his won't be part of it, Read More: Big airlines are flying 'ghost planes' stuffed with packages now that the demand for passenger flights has cratered, Read More: Inside the massive effort by US airlines to transport medical supplies and mail on cargo-only flights using passenger jets. Instead, it relies on subcontractors like Atlas Air, Southern Air, and now, Sun Country Air. If you wish to include a resume with this message. So, there's a strong uptick in demand for air travel but it's not going to be translating to the bottom line at all. During the previous earnings season, airlines were rather upbeat on their performance in the second quarter. It currently operates 12 aircraft for Amazon. It is responsive to Amazon's concerns, has experience flying Boeing 737s, and has a reputation for successfully flying older aircraft. See inside the new Boeing 777 and Dash 8-400 temporary conversions. That in part might be caused by the fact that the airline already was profitable in previous quarters, but also because the company is transitioning its cost structure where pilots are paid more and aircraft are being owned or brought under financial lease. Sun Country is a good partner for Amazon. Get the latest tech news & scoops delivered daily to your inbox. My main concern with Sun Country Airlines is that it's operating 30% more block hours compared to the same quarter in 2019 and for the second quarter its expecting revenues up 24% to 30%. I have no business relationship with any company whose stock is mentioned in this article. It's actually a very concentrated industry with UPS, US Postal Service, FedEx. In this report, I will have a look at how Sun Country Airlines (NASDAQ:SNCY) has performed during the first quarter and the outlook and updates the airline provided for the second quarter and 2022 if any. Instead, it prefers to work with other carriers to fly the cargo jets on their behalf to support their network. So. A Growing Fleet: Where Is Delta Flying Its Airbus A220s? Obviously for the cargo business, an economic downturn leads to lower demand for e-commerce shipping but Sun Country Airlines is well protected with long-term contracts.