Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY) Q3 2023 Earnings Conference Call November 7, 2023 4:30 PM ET

Company Participants

Chris Allen - Director of Investor Relations

Jude Bricker - Chief Executive Officer

Dave Davis - President and Chief Financial Officer

Grant Whitney - Chief Revenue Officer

Conference Call Participants

Duane Pfennigwerth - Evercore ISI

Catherine O'Brien - Goldman Sachs

Helane Becker - TD Cowen

Michael Linenberg - Deutsche Bank

Scott Group - Wolfe

Operator

Welcome to the Sun Country Airlines Third Quarter 2023 Earnings Call. My name is Crystal Love, and I will be your operator for today's conference. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I will now turn the call over to Chris Allen, Director of Investor Relations. Mr. Allen, you may begin.

Chris Allen

Thank you. I'm joined today by Jude Bricker, Chief Executive Officer; Dave Davis, President and Chief Financial Officer; and a group of others to help answer questions.

Before we begin, I would like to remind everyone that during this call, the company may make certain statements that constitute forward-looking statements. Our remarks today may include forward-looking statements which are based upon management's current beliefs, expectations and assumptions and are subject to risks and uncertainties.

Actual results may differ materially. We encourage you to review the risk factors and cautionary statements outlined in our earnings release and most recent SEC filings. We assume no obligation to update any forward-looking statements. You can find our third quarter earnings press release under the Investor Relations portion of our website at ir.suncountry.com.

With that said, I'd like to turn the call over to Jude.

Jude Bricker

Thanks, Chris. Thanks for joining us this afternoon, everyone.

Our diversified business model is unique in the airline industry. Due to the predictability of our charter and cargo businesses, we are able to deliver the most flexible scheduled service capacity in the industry. The combination of our scheduled flexibility and low fixed cost model allows us to respond to both predictable leisure demand fluctuations and exogenous industry shocks. We believe due to our structural advantages, we will be able to reliably deliver industry-leading profitability throughout all cycles.

Today, we're announcing 3Q results, including an adjusted operating margin of over 8% on 18.5% year-on-year departure growth. We know now these results produced the highest trailing 12-month pre-tax margin of any of the 11 public mainline U.S. carriers. The same was true at the end of the second quarter.