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Sun Country Airlines explores potential merger opportunities in ULCC market

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Sun Country Airlines explores potential merger opportunities in ULCC market
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Dave Davis President and Chief Financial Officer at Sun Country Airlines | Sun Country

Sun Country Airlines has expressed interest in potential merger opportunities within the ultra-low-cost carrier (ULCC) market. Speaking at the JP Morgan Industrials Conference on March 11, the airline’s President and CFO, Dave Davis, highlighted both the advantages and complexities of Sun Country as a merger candidate.

Davis said, “I think there are a lot of aspects that would make us fit well with others, but the thing about the business model that may be complex to some others is probably the cargo business. ” He added that airlines involved in charter flying and scheduled-service operations might integrate more smoothly with Sun Country.

Referencing recent industry moves, Davis noted, “Alaska just bought Hawaiian, and Hawaiian’s got a big Amazon deal; that’s probably the thing that comes to mind. ”

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The topic of airline mergers surfaces periodically in the industry. Recent discussions include JetBlue and Spirit Airlines, which faced challenges securing government approval for their merger.

Sun Country Airlines has previously indicated openness to consolidation. At the Barclays Industrial Select Conference in February, Davis remarked, “We think there are combinations with Sun Country that make sense and we continue to look at things. It’s certainly not our base plan, but I do believe the industry needs to consolidate on the low-cost side. It feels like some combinations are coming. ”

Industry experts suggest that current dynamics could favor merger deals among airlines. Sun Country operates 120 routes covering nearly 100 airports across the United States, Mexico, Central America, Canada, and the Caribbean. The airline describes itself as “a new breed of hybrid low-cost air carrier” aimed at connecting guests for memorable experiences.

According to ch-aviation data, Sun Country Airlines' fleet includes 45 Boeing 737 passenger aircraft and 13 Boeing 737 freighter planes.

In recent developments unrelated to mergers, Sun Country announced an extension of its selling schedule through December 9, 2025. This move aims to accommodate popular travel periods such as MEA weekend and Thanksgiving! .

Grant Whitney, Senior Vice President and Chief Revenue Officer said: “While leisure demand is less in t he fall than around winter spring break or summer Sun Countrys seasonal flexibility means we are also adding flights in t he fall for sports fans to travel to see our hometown teams”

Organizations Included in this History
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