Sun Country Airlines Holdings, Inc (NASDAQ:SNCY) Q3 2024 Results Conference Call October 31, 2024 8:30 AM ET

Company Participants

Chris Allen - Director of Investor Relations
Jude Bricker - Chief Executive Officer
David Davis - President, Chief Financial Officer & Director

Conference Call Participants

Duane Pfennigwerth - Evercore ISI
Brandon Oglenski - Barclays
Shannon Doherty - Deutsche Bank
Tom Fitzgerald - TD Cowen
Scott Group - Wolfe Research

Operator

Welcome to the Sun Country Airlines Third Quarter 2024 Earnings Call. My name is Daniel, and I will be your operator for today's call. [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, our Chief Executive Officer; Dave Davis, President and Chief Financial Officer; and a group of others to help answer questions.

Before we begin, I'd 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 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 on our most recent SEC filings. We assume no obligation to update any forward-looking statement. You can find our third quarter 2024 earnings press release on the Investor Relations portion of our website at ir.suncountry.com.

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

Jude Bricker

Thanks, Chris. Good morning, everyone. Happy Halloween. 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 schedule 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'll be able to reliably deliver industry-leading profitability throughout all cycles.

Domestic industry capacity growth peaked in June at almost 7%, and the growth rate has been slowing ever since. But across our network, industry capacity reached a peak growth rate of 12%. By January, domestic industry capacity will be flat year-on-year and will be down across our network. Many airlines earnings calls have focused on a rationalization of capacity. Clearly, much of the capacity that other airlines added across our network was loss-making and has been removed. All the while, Sun Country continues to expand and produce profits and healthy cash flows.