Sun Country Airlines Holdings, Inc.

Sun Country Airlines operates as a hybrid low-cost air carrier, utilizing shared resources across its passenger service and cargo service segments. The company is based in Minnesota and serves leisure and VFR (Visiting Friends and Relatives) passengers, Charter customers, and provides CMI (Crew, Maintenance, and Insurance) service to Amazon. Its flights operate throughout the United States and to destinations in Canada, Mexico, Central America, and the Caribbean. Sun Country Airlines shares resources, such as flight crews, between its Passenger and Cargo segments to generate higher returns and margins and mitigate route network seasonality. The company optimizes capacity using a peak demand scheduling strategy, shifting flying to markets during peak demand periods and away during low demand periods. This strategy aims to produce higher unit revenue with a competitive low-cost structure. The company flexes capacity by day of the week, time of year, and line of business to capture profitable, peak demand flying opportunities from its MSP home market and non-MSP markets. Within the Passenger segment, aircraft are shifted between Scheduled Service and Charter businesses to maximize asset return. The company uses "Power Patterns" to schedule aircraft and crew on trips combining Scheduled Service and Charter legs, replacing lower margin Scheduled Service flights with Charter opportunities. This agility is supported by owning lower cost used aircraft, a highly variable low-cost structure, and the cross-utilization of personnel and assets between business lines.