Cargo revenue at Sun Country Airlines inched up in the second quarter despite reduced flight activity on behalf of Amazon, but is expected to jump one year from now when the retail giant supplies additional Boeing 737-800 freighters to the carrier.
The two companies in late June agreed on an expanded transportation services agreement under which Amazon (NASDAQ: AMZN) will deliver eight Boeing 737-800 converted cargo jets it controls through a long-term lease to support package deliveries in its domestic logistics network.
The planes will be pulled from current contractor Atlas Air, and transferred to Sun Country starting in March of 2025. The date range provided in Friday’s briefing with analysts was more specific than previous statements that the leisure airline would begin operating the initial aircraft in the first quarter, with the remainder of the planes delivered on a rolling basis by the third quarter.
Minneapolis-based Sun Country (NASDAQ: SNCY) on Thursday reported cargo revenue of $25 million, up 1.7% from the second quarter of 2023, primarily due to an annual rate escalation that went into effect in December. Cargo flight hours dipped 2.4% to accommodate scheduled heavy maintenance, but are expected to grow in the third and fourth quarters.