Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY) Q1 2024 Earnings Call Transcript

So it’s just very important that you understand how we think about incremental capacity if you want to understand the businesses. Every airplane doing the best thing it can with that plane time at that moment and when we run out of things to do, they contribute positively. We don’t fly, where we fly cargo, or we fly charter. And so we’re just adjusting at the margin, and we were a little bit bigger than we needed to be into April and May.

Brandon Oglenski: Appreciate that, Jude. And Dave, I think you said in your prepared remarks, and we kind of spoke about this in the Q&A. It’s about reducing volatility in earnings. I mean, we probably shouldn’t confuse that with seasonality, right? But can you maybe elaborate a little bit more there?

David Davis: So yeah, we shouldn’t confuse it with seasonality. That’s going to be a part of our business. I think there are pieces of our business without getting into a ton of detail, that are much more stable from an earnings perspective that we will continue to focus on and maybe emphasize more in future periods. That should help reduce the volatility of earnings. And by reduced the volatility — I guess what I mean by that is somewhat less exposure to capacity adds in the scheduled service segment. So it’s really focusing on some of these other segments filling in off-peak periods and focusing on other segments that are going to be more stable and provide more stability to earnings.

Operator: Thank you. This now concludes the question-and-answer session. I would now like to turn it back to Jude Bricker for closing remarks.

Jude Bricker: Thanks for your time, everybody. Have a great day. And we’ll talk to you in 90 days.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.