Sun Country Airlines just made its trading debut. This is a huge step considering the current condition of the travel industry. The US budget carrier is looking to expand its operations as it successfully raised $218.2 million during its initial IPO. Shares closed 51.6% higher from $24 to $36.8 on Wednesday.
Sun Country CEO Jude Bricker mentioned that for the first time, they were able to “get sales back” to pre-COVID levels. According to Bricker, the funds will allow the airlines to grow since the airline has resumed hiring. Bricker also said that “right now everything is flashing green”.
Sun Country Airlines Sells 9.1 Million Shares
Sun Country Airlines is the first airline to go public since Mesa Air Group went public in 2018. It is also the largest since Virgin America’s IPO in 2014. Sun Country was able to sell 9.1 million shares.
Sun Country Airlines mentioned last week that it expects shares to go between $21 and $23. On Wednesday, the shares outperformed their expectations at $36.8. With the latest funding, purchases may happen quicker since second-hand jets are 25% cheaper according to Chief Financial Officer Dave Davis. And with additional jets, Sun Country is hiring 10 pilots a month and more flight attendants.
From Loss to Looking Bullish
Like other airlines, Sun Country Airlines wasn’t exempted from losses this year. In 2019, the budget airline had a $46 million net income. However, by 2020, it experienced a $3.9 million loss. Compared to other airline companies that relied heavily on corporate travel, the airline focused on budget travel and had a deal with Amazon to fly cargo. This allowed the company to minimize its losses despite travel restrictions.
Travel planning is on the rise as people had to deal with travel restrictions for more than a year. Airline stocks are also showing anticipation for a travel rebound. United Airlines, Delta Airlines, and US Global Jets shares are all looking bullish after seeing millions of passengers travel to have their spring break.
