Cost-conscious air travelers could bolster their spending on holidays as a result of US-imposed tariffs shaking global markets, from the perspective of Sun Country Air Chief Judebricker.
Speaking on April 3 at CAPA's Airline Leader Summit in Grand Cayman, Bricker commented on the sustained economic downturn and the growing fear that “it has to do with my business.”
“In most cases, the concern is probably what everyone thinks about US consumers, the impact of tariffs on pocketbooks and whether it squeezes discretionary costs for leisure activities,” he says. “I think that's probably going to happen and I think it's going to put downward pressure on demand.”
Much of the focus of the North American airline sector has recently declined in response to requests for air travel from Canada to USA. This droops amid geopolitical tensions between the two countries. This is heavily related to the escalation of the trade war.
Airlines such as Porter Airlines in Toronto and Low-cost Calgary-based Carrier Airlines have recently boosted domestic flights in response to declining demand for US flights.
Due to Sun Country's advantage, travel across curbed borders could be “slightly profitable” as Canadian travelers “increase travel costs in Florida and the Southwest and Southern California deserts.”
“Broadly speaking, the idea needs to see a drop in hotel prices, which will help my consumers born in the US,” he says. “I think travelling within the US is probably fine.”
Amid the broad economic outlook, Bricker says, “It's really hard to find something positive.”
Still, Sun Country bookings are strong until the second quarter, and “summer looks good,” he says.
Following previously announced plans, Sun Country will increase by around 10% in 2025 on behalf of e-commerce and logistics company Amazon, but its scheduled passenger service will fall by 5%.
The Boeing 737 fleet, which made up Sun Country's cargo, has increased from 12 jets this year to 20, providing a low-risk revenue stream during periods of uncertainty.
We will also continue to operate charter flights for universities and professional sports teams. Bricker says it generates around 15% of the company's revenue “like the icing on a cake.”
U.S. airline stocks fell sharply on April 3rd, primarily in response to US tariffs imposed on long-standing trading partners.
