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Sun Country Airlines (SNCY): Customer Relationships Drive a Services-Led Cargo Franchise

Sun Country operates as a leisure-focused airline that monetizes through three primary revenue streams: scheduled passenger service, charter operations, and a growing cargo/CMI (crew, maintenance, insurance) services business delivered under long-term contracts. The company converts aircraft and operating capability into recurring, contracted cash flow when providing CMI for large e-commerce customers, and into more variable yield when selling passenger/leisure travel and charters. For investors, the Amazon CMI relationship is the single largest customer-led revenue anchor and the primary driver of the firm’s services margin profile.

Explore more on partner exposures and how we map commercial counterparts at https://nullexposure.com/.

How Sun Country’s customer model actually works — a quick investor primer

Sun Country’s cargo business is structured as an asset-light service provider in which customers (notably Amazon) supply freighter aircraft under sublease and Sun Country supplies the flight operations, crew, line maintenance and insurance under multi-component contract economics (fixed monthly aircraft and flight fees plus per-block-hour payment). That pricing mix produces stable, usage-linked cash flow and ties revenue to block hours flown, giving the company leverage to utilization as it scales its cargo fleet. Passenger and charter revenues remain cyclical and less contractually protected, but cargo CMI materially lifts recurring revenue proportion and operating margin.

If you want a mapped view of client exposures for investment or operational diligence, visit https://nullexposure.com/.

Customer relationships in the record — plain-English summaries and sources

Amazon (AMZN)

Sun Country runs a multi-year CMI program for Amazon, operating a fleet of Boeing 737-800 freighters on Amazon’s behalf under a long-term ATSA that began in 2019. Amazon is identified as the company’s only CMI customer and the cargo arrangement includes fixed monthly aircraft and flight fees plus a block-hour component. (See Sun Country 2025 Form 10‑K and the company’s Q3 2025 earnings commentary.)

Source: Sun Country 2025 Form 10‑K and SNCY Q3 2025 earnings call.

Amazon (news coverage of cargo start in 2020)

Sun Country began flying cargo for Amazon in May 2020, launching the initial cargo service from Florida to Kentucky and expanding thereafter; media coverage documents the relationship’s operational start and evolution. This historical origin underpins the CMI expansion that later became the formal ATSA.

Source: MarketRealist reporting on Sun Country’s early Amazon cargo flights (May 2020).

Amazon referenced in FY2025 corporate disclosures and schedule notices

Multiple FY2025 corporate updates and schedule announcements describe Sun Country’s business model as focused on leisure passengers and charter customers while also explicitly noting cargo service to Amazon across U.S., Mexico, Central America, Canada and the Caribbean. Public filings and press releases consistently list Amazon cargo as a core operational element.

Source: QuiverQuant news excerpts summarizing company disclosures (FY2025) and public schedule notices.

Amazon.com Services, LLC (formal contract counterparty)

The 10‑K language identifies Amazon.com Services, LLC as the contractual party for the CMI arrangement and reiterates that Amazon is currently the company’s only CMI customer. This formal naming clarifies legal counterparty and contractual concentration.

Source: Sun Country 2025 Form 10‑K.

Amazon Prime Air (branding in corporate announcement)

Company communications and third‑party press releases describe the arrangement as a multi-year agreement with Amazon Prime Air, positioning Sun Country as a major narrow‑body freighter operator in the U.S. logistics network and confirming the contract’s strategic scale in the freighter market.

Source: Allegiant / Sun Country combination announcement and related FY2026 press materials.

ALG Vacations (leisure/charter partnership)

Sun Country is listed among carriers operating exclusive nonstop vacation flights for ALG Vacations during winter/spring 2026 routes (notably MKE–CUN and MKE–PUJ), reflecting the airline’s ongoing leisure/charter distribution relationships and seasonal network contribution. This is a commercial leisure partnership distinct from the cargo CMI business.

Source: Travel Market Report coverage of ALG Vacations’ 2026 vacation flight schedules (FY2025 / early 2026 season).

Operational constraints and what they imply for the business model

  • Long-term contracting with a single large customer: The ATSA with Amazon establishes a multi-year, largely locked-in revenue stream (initial six-year term signed in 2019 with renewal and wind‑down provisions), which creates durable top-line visibility for the cargo business. This is a company-level signal grounded in the contract excerpts naming Amazon and the ATSA structure.

  • Mixed pricing posture — fixed plus usage-linked: Contract consideration includes a fixed per-aircraft monthly fee and per-flight fixed fees combined with a per block-hour usage component, giving management both base coverage and utilization upside. This makes Sun Country’s cargo revenue both predictable and sensitive to hours flown.

  • Geographic concentration in North America: A substantial portion of operations and the Amazon freighter role are oriented to the domestic U.S./Canada/Mexico/Caribbean network, so route performance and regional demand materially affect utilization and incremental revenue.

  • Service provider role and asset-light characteristics: The CMI model is asset-light for Sun Country because Amazon supplies aircraft via sublease while Sun Country supplies crew, maintenance and insurance; the arrangement increases operational dependency on Amazon’s aircraft sublease program while reducing capital commitment for Sun Country.

  • Concentration risk and maturity stage: Amazon is the company’s only CMI customer today — that concentration reduces counterparty diversification but provides scale and margin. The relationship is active and ramping: management reported 20 aircraft in service under the agreement in 2025 and the fleet increased to 22 in early 2026 per disclosures.

Investment implications — what to watch and why it matters

Sun Country’s investor case hinges on how management balances the contract-protected cargo cash flow against cyclical passenger exposure. The Amazon CMI arrangement materially improves operating leverage and EBITDA conversion relative to a pure leisure operator, but it also concentrates counterparty risk — loss or non‑renewal of the ATSA would have outsized consequences.

Key monitoring items:

  • Contract renewal and extension negotiations with Amazon and any escalation or repricing of block‑hour economics.
  • Fleet utilization and any operational disruptions that reduce block hours; the contract’s usage element ties revenue directly to hours flown.
  • Passenger/leisure demand and charter pipeline (e.g., ALG Vacations routes) that offset seasonality and diversify revenue.

If you are mapping counterparty concentration for portfolio or operational diligence, see our partner exposure tools at https://nullexposure.com/ for a structured view.

Bottom line and next steps for due diligence

Sun Country has carved out a differentiated position by combining leisure network service with a contractually anchored cargo services franchise centered on Amazon. The business benefits from recurring, partially usage‑driven revenue through an asset-light CMI model, but bears concentration risk and North American routing sensitivity. For investors, the balance of contractual visibility and single-customer exposure creates a classic risk/reward profile: durable contracted cash flow with concentrated counterparty dependence.

For a detailed, interactive breakdown of Sun Country’s customer exposures and how they affect valuation and risk, visit https://nullexposure.com/.