Sun Country Airlines has received the first of eight additional Boeing 737-800 freighters, expanding its partnership with Amazon. The airline expects to have all eight aircraft in operation by the summer, bringing its Amazon cargo fleet to a total of 20 aircraft (Amazon Prime Air). This expansion is projected to drive a significant increase in cargo revenue, with estimates indicating a doubling of earnings by next year.
- The first of the new freighters is expected to enter service by late Q1 2025.
- The remaining aircraft will be integrated into operations gradually, with full deployment anticipated by the fourth quarter of 2025.
- Sun Country initially entered into a 10-aircraft sublease agreement with Amazon in 2020, later increasing the number to 12 aircraft.
- The deal for the latest eight freighters was formalized in June 2024.
Despite UPS planning to reduce its business with Amazon by 50%, Sun Country executives indicated that immediate opportunities to take on additional Amazon freight services remain limited. The airline currently operates Amazon’s entire narrow-body fleet, making further expansion dependent on Amazon’s strategic fleet adjustments.
Financial performance and cargo revenue growth
Sun Country reported a 13.1% increase in cargo revenue for Q4 2024, reaching $28.6 million, marking its highest-ever quarterly earnings in this segment. Although cargo block hours declined by 2.5%, revenue per block hour increased by 16%, driven by pricing adjustments and contract extensions with Amazon.
With the expanded fleet set to be fully operational by the end of 2025, Sun Country expects cargo revenue to double within the next year, further strengthening its position in the air cargo market while balancing its scheduled passenger services.