Sun Country Airlines Enters Into Revised Agreement with Amazon
Rhea-AI Summary
Sun Country Airlines (NASDAQ: SNCY) has signed an amended and restated Air Transport Services Agreement with Amazon, extending their partnership through 2030, with options to extend further to 2037. This revised agreement will see Sun Country operating up to eight additional Boeing 737-800 cargo aircraft beginning in early 2025. This expansion will increase the airline's cargo fleet from 12 to 20 aircraft, with all new planes expected to be operational by the third quarter of 2025. Sun Country's CEO, Jude Bricker, highlighted the importance of Amazon as a customer and expressed confidence in the continued growth of their cargo operations.
Positive
- Contract extension with Amazon through 2030 with potential extension to 2037.
- Addition of up to eight Boeing 737-800 cargo aircraft, increasing the cargo fleet to 20.
- All new aircraft expected to be operational by Q3 2025, starting service by Q1 2025.
Negative
- None.
News Market Reaction – SNCY
In the trading session that priced this news, SNCY gained 11.77%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Eight additional B737-800 aircraft will bring Sun Country cargo fleet to 20 Term extended to 2030 with potential further extension to 2037
MINNEAPOLIS, June 20, 2024 (GLOBE NEWSWIRE) -- Sun Country Airlines (NASDAQ: SNCY) today signed an Amended and Restated Air Transport Services Agreement with Amazon, extending the contract through 2030 with options to further extend the terms through 2037. Under the amended agreement, Sun Country will operate up to eight additional Boeing 737-800 cargo aircraft beginning in early 2025.
The amended agreement will increase Sun Country’s cargo operation from 12 to up to 20 freighters with the first additional aircraft expected to begin service in the first quarter of 2025. All eight aircraft are expected to be operational by the third quarter of 2025.
“Amazon is an extremely important customer to Sun Country and strong execution on our current cargo services positioned us well to grow our business. We look forward to continuing to provide services to Amazon into the 2030s,” said Jude Bricker, chief executive officer, Sun Country.
About Sun Country
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.
