Sun Country Airlines Holdings, LLCSNCY
Sun Country Airlines Holdings, LLC Revenue Disclosure
4. REVENUE
Sun Country is a certificated air carrier generating Operating Revenues from Passenger (consisting of Scheduled Service, Charter, and Ancillary), Cargo and Other revenue. Scheduled Service revenue mainly consists of base fares. Charter revenue is primarily generated through service provided to the DoW, collegiate and professional sports teams, and casinos. Ancillary revenues consist of revenue earned from air travel-related services, such as: baggage fees, seat selection fees, other fees and on-board sales. Cargo consists of revenue earned from flying cargo aircraft for Amazon under both the original ATSA and the A&R ATSA. For more information on the original and the A&R ATSA, see Note 2 included within these Consolidated Financial Statements. Other revenue consists primarily of revenue from services in connection with Sun Country Vacations products and rental revenue related to certain transactions where the Company serves as a lessor, and revenue for the brand and marketing performance obligation related to the Company's co-branded credit card program.
The significant categories comprising Operating Revenues are as follows:
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Scheduled Service | $ | 403,998 | $ | 409,133 | $ | 453,862 | |||||||||||
| Charter | 224,227 | 197,045 | 190,128 | ||||||||||||||
| Ancillary | 294,904 | 307,909 | 276,133 | ||||||||||||||
| Passenger | 923,129 | 914,087 | 920,123 | ||||||||||||||
| Cargo | 155,027 | 107,174 | 99,735 | ||||||||||||||
| Other | 48,613 | 54,478 | 29,762 | ||||||||||||||
| Total Operating Revenue | $ | 1,126,769 | $ | 1,075,739 | $ | 1,049,620 | |||||||||||
The Company attributes and measures its Operating Revenue by geographic region as defined by the DOT for airline reporting based upon the origin of each passenger and cargo flight segment.
The Company’s operations are highly concentrated in the U.S., primarily within its MSP home market, but include service to many international locations, primarily based on Scheduled Service to Latin America during the winter season and on military Charter flights.
Total Operating Revenues by geographic region are as follows:
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Domestic | $ | 1,086,518 | $ | 1,039,339 | $ | 1,008,582 | |||||||||||
| Latin America | 40,152 | 36,400 | 40,548 | ||||||||||||||
| Other | 99 | — | 490 | ||||||||||||||
| Total Operating Revenue | $ | 1,126,769 | $ | 1,075,739 | $ | 1,049,620 | |||||||||||
Contract Balances
The Company’s contract assets relate to costs incurred to prepare the Amazon cargo aircraft for service under the original ATSA and the A&R ATSA, as well as warrants that have vested and will be amortized against Cargo revenue over the remaining term of the A&R ATSA. The balances are included in Other Current Assets and Other Assets on the Consolidated Balance Sheets.
The Company’s contract liabilities are comprised of: 1) ticket sales for transportation that has not yet been provided (reported as Air Traffic Liabilities on the Consolidated Balance Sheets), 2) outstanding loyalty points that may be redeemed for future travel and other non-air travel awards (reported as Loyalty Program Liabilities on the Consolidated Balance Sheets), 3) the Amazon Deferred Up-front Payment received under the original ATSA (reported within Other Current Liabilities and Other Long-term Liabilities on the Consolidated Balance Sheets), and 4) a one-time payment received upon launch of the co-branded Credit Card Program (reported within Other Current Liabilities and Other Long-term Liabilities on the Consolidated Balance Sheets).
As part of the ATSA executed in December 2019, Amazon paid the Company $10,300 toward start-up costs. Upon signing the ATSA, Amazon received 632,183 fully vested warrants to purchase the Company’s common stock, with a fair value of $4,667. This fair value was assigned to a portion of the $10,300 cash received from Amazon and the remaining $5,633 was recorded in Other Liabilities on the Company’s Consolidated Balance Sheets. This deferred up-front payment is being amortized into revenue over the remaining term of the A&R ATSA and is immaterial on an annual basis. The warrant agreement was not amended in connection with the A&R ATSA, and Amazon did not receive any additional warrants in connection with the A&R ATSA. Accordingly,
warrants issued to Amazon will continue to vest in accordance with the terms of the warrant agreement executed in December 2019.
In March 2025, the Company entered into a new co-branded Credit Card Program, which launched in the third quarter of 2025. Upon launch of the program, the Company received a one-time payment of $1,016, which was recorded as a contract liability. The one-time payment is being amortized into Other Revenue on a straight-line basis over the term of the agreement. Subject to certain exceptions, the Credit Card Program has a term of seven years following its launch.
Contract Assets and Liabilities are as follows:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Contract Assets | |||||||||||
| Amazon Contract | $ | 13,347 | $ | 4,135 | |||||||
| Total Contract Assets | $ | 13,347 | $ | 4,135 | |||||||
| Contract Liabilities | |||||||||||
| Air Traffic Liabilities | $ | 167,024 | $ | 160,686 | |||||||
| Loyalty Program Liabilities | 14,846 | 14,601 | |||||||||
| Amazon Contract | 1,686 | 1,612 | |||||||||
| Credit Card Program | 976 | — | |||||||||
| Total Contract Liabilities | $ | 184,532 | $ | 176,899 | |||||||
The balance in the Air Traffic Liabilities fluctuates with seasonal travel patterns. Most tickets can be purchased no more than 12 months in advance, therefore any revenue associated with tickets sold for future travel will be recognized within that timeframe. For the year ended December 31, 2025, $156,792 of revenue was recognized in Passenger revenue that was included in the Air Traffic Liabilities as of December 31, 2024.
Loyalty Program
The Sun Country Rewards program provides loyalty awards to program members based on accumulated loyalty points. For more information on the Company's loyalty awards to program members, see Note 2 include within these Consolidated Financial Statements. The balance of the Loyalty Program Liabilities fluctuates based on seasonal patterns, which impacts the volume of loyalty points awarded through travel or issued to co-branded credit card and other partners (deferral of revenue) and loyalty points redeemed (recognition of revenue). Due to these reasons, the timing of loyalty point redemptions can vary significantly.
Changes in the Loyalty Program Liabilities are as follows:
| 2025 | 2024 | ||||||||||
| Balance - January 1 | $ | 14,601 | $ | 13,737 | |||||||
| Loyalty Points Earned | 8,974 | 8,810 | |||||||||
Loyalty Points Redeemed (1) (2) | (8,729) | (7,946) | |||||||||
Balance - December 31 | $ | 14,846 | $ | 14,601 | |||||||
| (1) | Loyalty points are combined in one homogenous pool, that includes both air and non-air travel awards, and are not separately identifiable. As such, the revenue recognized is comprised of points that were part of the Loyalty Program Liabilities balance at the beginning of the period, as well as points that were earned during the period. | ||||
| (2) | Includes $355 of other deferred loyalty payments, net of the amount earned for the year ended December 31, 2024. | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 15, 2023 | |
| 2021 | Feb 18, 2022 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.