Sun Country Airlines stretched to 'seams' with rapid growth
Sun Country Airlines is bursting at the seams as growth ratchets up this year with the addition of its first Amazon flying.
The Minneapolis/St. Paul (MSP)-based carrier will introduce the first of 10 Boeing 737 Freighters for the e-commerce giant in April, while continuing to expand its passenger flying to four new destinations in May. All of this comes as it continues to absorb its 2019 growth, and develop its new connecting bus service in Minnesota.
“We’re stretching at the seams at little Sun Country," Sun Country CEO Jude Bricker said at the Routes Americas forum in Indianapolis Wednesday.
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Under Bricker's leadership, Sun Country has grown from an airline with 22 737s in 2017 to one that will have 45 jets, including the Amazon freighters, by July.
The privately-held carrier saw its net profit jump by more than a third to $47 million during the year ending in March 2019, the latest U.S. Department of Transportation airline financial data shows.
But growth, even profitable growth, does not come without its headaches. Sun Country faces challenges hiring the staff needed to get — and keep — all its new jets in the air, and just managing that growth to ensure it does not have an operational meltdown.
“With 2.5% unemployment, the upside is just about everybody in the Twin Cities can buy a ticket, the downside is staffing is really difficult," said Bricker. "It’s not a function of people don’t want to come work for us, the problem is I’m trying to double the operation in 18 months”
Related: Sun Country’s CEO is building a ‘civilized’ budget carrier
Other airlines, including Allegiant Air where Bricker worked for years, have faced similar challenges. Operations are a notable area of stress for high-growth carriers, with the likes of JetBlue Airways and Spirit Airlines all facing public issues before implementing a renewed focus on reliable performance.
These challenges have not deterred or otherwise slowed Sun Country's growth. In 2020, passenger capacity is due to be flat though overall "block hours" — a measure of how many hours an aircraft is in revenue service — will increase roughly 15% year-over-year due to the Amazon deal, said Bricker.
One focus will be the success of Sun Country's Landline bus partnership that launched in November. The first two routes, between Minneapolis/St. Paul airport and Duluth (DLH) and Mankato (MKT) in Minnesota, have seen mixed success with the former "great" and the latter having "not quite taken off," said Bricker.
The airline's aim is for travelers to leave their cars at home and take the bus — with a Sun Country flight number and all — to the its flights in Minneapolis. The service allows passengers to check bags through to their final destination in both Duluth and Mankato, and then enjoy a bus ride with free Wi-Fi and complimentary snacks and non-alcoholic drinks on the ride to the Twin Cities.
Related: Sun Country bets on Landline buses to extend regional reach
Sun Country is focused on continuing to build demand for the bus routes, which act as essentially a regional flight on the ground, said Bricker. It hopes to expand the service to additional points, including Fargo (FAR), Madison (MSN) and Sioux Falls (FSD), in the near future.
For now Sun Country is gearing up for its freighter launch in April, and all the details that a new business segment entails. Beyond that, Bricker said business is strong and the grounding of the Boeing 737 MAX — a jet it does not operate, nor has plans to operate -- has not put pressure on the airline.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.