Shares of Sun Country Airlines Holdings, Inc. (SNCY) soared 6.2% in pre-market trading on Tuesday after the airline reported better-than-expected fourth-quarter earnings and revenue, backed by its ability to adjust capacity effectively amid industry oversupply.

For the fourth quarter of 2024, Sun Country posted adjusted earnings of $0.27 per share, surpassing analysts' expectations of $0.20. Total operating revenue came in at $260.4 million, beating the consensus estimate of $257.3 million.

The strong results were driven by robust performance across Sun Country's diversified business segments. Scheduled service revenue grew 3% year-over-year, while cargo revenue hit a record high for the fourth quarter, climbing 13.1% on higher rates from the company's Amazon contract. Cost controls also contributed to the earnings beat, with adjusted CASM rising a modest 7.6% amid lower fuel costs.

While scheduled service TRASM declined 1% year-over-year, the company noted steady improvement throughout the quarter, with December TRASM increasing over 5% on nearly 8% capacity growth. Sun Country's CEO, Jude Bricker, highlighted the company's ability to "make significant capacity adjustments in response to industry oversupply" as a key factor in its success.

Looking ahead, Sun Country provided upbeat guidance for the first quarter of 2025, projecting total revenue growth of 6-9% year-over-year on mid-single-digit growth in scheduled service capacity. The company expects to benefit from the ongoing expansion of its cargo operations, with eight additional Amazon freighters scheduled for delivery throughout the year.