Shares of Sun Country Airlines Holdings, Inc. (SNCY) surged 5.05% on November 1st, fueled by investor optimism around the airline's cargo growth prospects and signs of rebounding demand in its passenger business.

The Minneapolis-based carrier reported flat third-quarter revenue of $249.5 million, as growth in its cargo and charter segments helped offset overcapacity-driven weakness in its scheduled passenger operations. However, Sun Country's cargo revenue climbed 11.9% year-over-year to $29.2 million, driven by a portion of rate increases from its extended agreement with Amazon.

Notably, Sun Country expects its cargo flying to increase significantly in 2025 as it adds eight more aircraft to its Amazon fleet, bringing the total to 20 aircraft. This expansion is part of an agreement with Amazon running until 2030, providing a stable revenue stream for the airline.