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    Why Is Sun Country (SNCY) Turning Higher Revenue Into Flat Earnings?

    Simply Wall St·02/10/2026 16:26:05
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    • Sun Country Airlines Holdings, Inc. has reported its fourth-quarter 2025 results, with revenue rising to US$280.96 million while net income eased to US$8.15 million, and full-year 2025 revenue increasing to US$1.13 billion with net income essentially unchanged at US$52.81 million versus 2024.
    • An interesting aspect of this update is that higher quarterly and full-year revenues did not translate into higher profits, leading to slightly lower quarterly earnings per share compared with the prior year.
    • We will now examine how growing revenue alongside largely flat annual earnings shapes Sun Country Airlines Holdings’ investment narrative for investors.

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    What Is Sun Country Airlines Holdings' Investment Narrative?

    To own Sun Country today, you have to believe in its niche, low-cost, hybrid model while accepting that execution has recently been mixed. The Allegiant takeover agreement now sits at the center of the story, with the stock’s very large year-to-date gain suggesting the market is already pricing in a good chance of the deal closing. The latest results complicate that picture: revenue continued to climb in 2025, but net income and earnings per share barely moved for the year and fell in the fourth quarter, underlining cost and margin pressure just as integration planning ramps up. In the near term, the key catalysts are regulatory and shareholder approvals for the Allegiant transaction; the earnings miss looks less likely to be the main driver of the share price unless it prompts the market to reassess deal risk or long-run profitability.

    However, one risk stands out that investors may not be fully focused on yet. Sun Country Airlines Holdings' shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

    Exploring Other Perspectives

    SNCY 1-Year Stock Price Chart
    SNCY 1-Year Stock Price Chart
    Three Simply Wall St Community members currently place Sun Country’s fair value between US$18.00 and about US$61.14, underlining how far apart individual views can be. Against that backdrop, the recent flat annual earnings and pending Allegiant deal give you very different possible futures to weigh, so it is worth comparing these community views with your own expectations for profits and regulatory outcomes.

    Explore 3 other fair value estimates on Sun Country Airlines Holdings - why the stock might be worth over 2x more than the current price!

    Build Your Own Sun Country Airlines Holdings Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.