Sun Country Airlines Boeing 737 takes off from Los Angeles International Airport on August 27, 2020.
AaronP/Bauer-Griffin | GC Images | Getty Images
Sun Country Airlines shares soared greater than 51% in their trading debut Wednesday, signaling robust investor urge for food for airline inventory as the trade plots a rebound.
“For the first time since the Covid crisis came we’ve been able to get sales back to what they were at pre-Covid levels, so we’re feeling really good about a recovery,” Sun Country CEO Jude Bricker mentioned in an interview with CNBC’s “Squawk on the Street.” He mentioned the brand new funds will assist the airline develop this yr and that the airline has resumed hiring.
The finances airline mentioned raised $218 million in an preliminary public providing. The Apollo Management Group-backed airline is the primary U.S. provider to go public since Mesa Air Group in 2018. It’s additionally the most important U.S. airline IPO since Virgin America’s in 2014, in line with Dealogic.
Sun Country bought near 9.1 million shares, which priced at $24, it mentioned late Tuesday. Last week, the Minneapolis-based airline mentioned it anticipated the shares to cost between $21 and $23. The shares closed at $36.38 on Wednesday after debuting beneath the ticker “SNCY” on the Nasdaq Global Select Market.
Discount provider Frontier Airlines is reviving its plans to go public, it said last week.
Sun Country caters to sun-seeking vacationers, a section that has fared higher throughout the Covid pandemic in contrast with bigger airways whose huge worldwide networks and enterprise fashions rely closely on company travel. Sun Country additionally has an settlement with Amazon to fly cargo on older narrow-body Boeing 737 planes.
Sun Country was nonetheless impacted by the disaster. It swung to a $3.9 million loss final yr from internet revenue of $46 million the earlier yr, in line with firm filings. Revenue final yr fell to $401.5 million from $701 million in 2019.