Amazon cargo flights set to be managed by Sun Country during peak season
Sun Country Airlines, known for its hybrid business model that includes scheduled passenger service, group charter flights, and cargo operations, has reported a twelfth consecutive profitable quarter. The airline's strong performance is attributed, in part, to its partnership with Amazon, which began in 2020, supporting the parcel distribution giant's network with a dozen 737-800 freighters.
The second quarter of 2025 saw the addition of three more aircraft to Sun Country's cargo fleet. However, the integration of these new freighters has caused some delays, resulting in slightly lower-than-expected cargo flight hours. The additional procedures required to commission these aircraft, such as reconciling maintenance records and fulfilling regulatory requirements, have contributed to these delays.
Despite these temporary setbacks, Sun Country is on track to have its full fleet of eight Amazon-supplied freighters operational in time for the peak shipping season. The airline plans a 40-50% surge in cargo flight hours in Q3 2025, aligning with Amazon’s peak shipping demand. This surge is expected to drive a significant increase in cargo capacity, reflecting a promising growth potential and a 37% year-over-year rise in cargo revenue to $35 million reported for Q2 2025.
By September, Sun Country will have 20 aircraft in its cargo fleet. The airline anticipates its cargo revenue to double, reaching approximately $215 million per year, due to the addition of more aircraft and rate increases in the Amazon contract. The contract for the eight new aircraft features a higher starting rate than the airline's existing contract, which includes an annual rate escalator.
To ensure a smooth expansion of the Amazon business, Sun Country temporarily reduced scheduled passenger flights this year. The fourth quarter is traditionally the busiest season for online retailers and parcel carriers, including Amazon. The airline's hybrid business model, allowing it to adapt to changing demands, has been instrumental in maintaining profitability during this period of growth.
The company did not provide specific details about the rate increases in the Amazon contract. However, it is evident that the partnership is proving beneficial for both parties, with Sun Country's cargo revenue increasing by 37% year over year to $35 million during the second quarter. Chargeable hours to Amazon will be up 40% to 50% in the third quarter, according to interim CFO Bill Trousdale.
As of early August, five of the eight Boeing 737-800 converted freighters transferred by Amazon are now in service with Sun Country. The remaining three aircraft are expected to enter service by the end of August, though there might be delays due to ongoing certification and maintenance checks.
In conclusion, while the additional Amazon freighters have not yet been fully integrated as of early August, the process is nearing completion, and Sun Country expects substantial cargo flight hour growth during the upcoming peak shipping season due to the expanded fleet.
The acquisition of three additional freighters in Q2 2025 has slightly delayed cargo flight hours, but Sun Country is on track to have its full fleet of eighteen aircraft, including the eight Amazon-supplied freighters, operational for the peak shipping season. The aerospace industry and finance sector are poised for growth as Sun Country anticipates a 40-50% surge in cargo flight hours and a 37% year-over-year rise in cargo revenue, reaching approximately $215 million per year.
