Sun Country Airlines Holdings, Inc. (SNCY) stock plummeted 5.11% in the pre-market trading session on Tuesday, February 4, 2025, following the release of its fourth quarter and full-year 2024 financial results.

The airline reported a mixed performance for the quarter ended December 31, 2024, with revenue increasing 6.1% year-over-year to $260.4 million but net income declining 26.7% to $52.9 million for the full year. Earnings per share (EPS) for the full year 2024 stood at $0.96, falling short of analyst expectations.

Several factors contributed to the disappointing performance:

• Scheduled service revenue, which accounts for a significant portion of Sun Country's total revenue, declined 9.9% in 2024 compared to the previous year, primarily due to lower base fares.
• Operating expenses rose 5.2% year-over-year, driven by higher salaries, wages, and benefits, as well as increased maintenance costs and landing fees.
• The company's adjusted operating income margin contracted to 10.4% in 2024, down from 13.0% in 2023, indicating a squeeze on profitability.

While Sun Country Airlines highlighted positive developments such as record fourth-quarter revenue and the expansion of its cargo operations, investors seemed to focus on the weaker-than-expected financial results, leading to the significant pre-market sell-off.