Sun Country Airlines Holdings, Inc.

Hello and welcome to the Sun Country Airlines second quarter 2025 earnings conference call. My name is Andrew and I'll be your operator for today's call. At this time all participants are in a listen only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand has been raised. To withdraw your question please press star 1 1 again. 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. Thank

you. I'm joined today by Jude Ricker, our Chief Executive Officer, Bill Trottisdale, Chief Financial Officer and a group of other self-answered questions. Before we begin I'd like to remind everyone that during this call the company may make certain statements that constitute forelooking statements. Our remarks today may include forelooking statements which are based on management's current beliefs, expectations and assumptions and are subject to risk and uncertainty. Actual results may differ materially. We encourage you to review the risk factors and cautionary statements outlined in our earnings release and our most recent SEC filings. We assume no obligation to update any forelooking statement. You can find our second quarter, 2025 earnings press release on the investor relations portion of our website at .suncountry.com. With that said I'd now like to turn the call over

to Jude. Thanks Chris. Good morning everyone. We're pleased to report our 12th consecutive quarter of profitability. Our diverse 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'll be able to reliably deliver industry-leading profitability throughout all cycles. The theme in 2025 for some countries is about growth in our cargo business. At the end of August we expect to have all eight 2025 cargo additions in service bringing our cargo fleet to 20 aircraft. We anticipate fleet growth along with contractual rate increases will roughly double versus prior contract our cargo revenue once these additional aircraft reach mature utilization. In the short term this rapid growth has caused a pullback in our scheduled service volumes. We are planning that these reductions will be recovered as we move through 2026. I want to provide a little color as to the effects of this rapid cargo growth as it has on our results. Our two Q results reported yesterday reflect the year over year trazum improvement of 3.5%. Within the quarter each month had a positive unit revenue performance. May have the best year on year improvement with trazum up .6% which is consistent with our expectation that off peak and shoulder periods are the most sensitive to capacity changes. Importantly the peak summer months of June, July and August could absorb much more capacity than we are able to deliver with little fall off in unit revenue and performance. There's the point. First, the rapid growth of our cargo business has required us to pull back scheduled service during our peak summer months. Second, during peak months unit revenue improvements won't overcome unit cost pressures of lower utilization. This situation will be most acute in July and therefore most impactful in 3Q25. We expect margins to expand as we build back our scheduled service with flying that was productive but that we had to cut. With all this complexity in our current results I think it's worthwhile to look into the future when we get the cargo fleet fully utilized, recover our passenger fleet utilization and add in our own fleet of leased out aircraft mostly 900s coming back to us through 2026. That will be an in service fleet of 70 aircraft, 20 cargo and 50 passengers. With current demand for our product and current fuel prices I expect the business to deliver roughly $1.5 billion in revenue, $300 million in EBITDA and $2.5 in EPS. The timing of getting to this is a bit uncertain as we're challenged with induction timing and pilot upgrades but I expect to be there by around the second quarter of 2027. In the meantime we'll be focused on deploying our free cash flow. Our success in achieving these results will be mainly dependent on our ability to continue to deliver a great product. For 2Q I'm particularly proud that we delivered the industry's best completion factor, our most important operating metric. Airline operations are a team event. I'm so proud of all our folks for delivering for our customers every day. Over to you Bill.