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Sun Country carves out new opportunities

Analysis

Sun Country has been a mainstay in its home of Minneapolis-St Paul for decades, and during its 30-plus year history the airline has built up a loyal following in that market. But consistent profitability has been elusive for the airline, and it has had a couple of stints in the bankruptcy process.

During 2017 the company named a ULCC veteran as its CEO and was purchased by the private equity firm Apollo Global management. Since that time Sun Country has undertaken a transition to being a low cost operator and started working to diversify its network outside Minneapolis, focusing on capitalising on demand in seasonal markets during their peak periods.

Mid-2019 is a crucial period for the airline as Sun Country launches a new website in conjunction with the overhaul of its passenger service and departure control systems.

The airline is also working toward a unit cost target of USD6 cents excluding fuel by the end of year 2019. Sun Country's management believes all those efforts and more should stabilise the airline and set it in a favourable position for future growth. And ultimately, Apollo will move to sell, or spin off, Sun Country to gain returns on its investment.

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