Cost-conscious air travellers will likely tighten spending on vacations as a result of US-imposed tariffs roiling global markets, from the perspective of Sun Country Airlines chief Jude Bricker.
Speaking on 3 April during CAPA’s Airline Leader Summit in Grand Cayman, Bricker commented on growing fears of a sustained economic downturn and how “that pertains to my business”.
”Mostly, the concern is probably how everybody’s thinking about the US consumer and the effect of the tariffs on their pocketbook, and whether that squeezes out discretionary spending on 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 North American airline sector’s focus has recently fallen on demand for Canada-to-USA air travel, which is sagging amid geopolitical tensions between the two countries – largely related to an escalating trade war – and the rise of the “buy Canada” movement encouraging Canadians to spend domestically.
Carriers such as Toronto’s Porter Airlines and Calgary-based low-cost carrier Flair Airlines have recently boosted domestic flying in response to lower demand for US flights.
From Sun Country’s vantage, suppressed transborder travel could “benefit us somewhat” because Canadian travellers “drive up the trip costs in Florida and the desert southwest and Southern California”, Bricker says.
”The idea would be, broadly speaking, you should see lower hotel rates… which would help my consumers, which largely originate in the US,” he says. “I think intra-US travel is probably going to be OK.”
Of the broad economic outlook, Bricker says, “It’s really hard to find anything positive”.
Still, Sun Country’s bookings are strong through the second quarter, and “summer looks good”, he says.
Following a previously announced plan, Sun Country will increase flying cargo on behalf of e-commerce and logistics company Amazon by about 10% in 2025, while its scheduled passenger service will decrease 5%.
Sun Country’s fleet of cargo-configured Boeing 737s will increase to 20 from 12 jets this year, providing a low-risk revenue stream during a period of uncertainty.
It will also continue operating charter flights for college and professional sports teams, which Bricker says is “like icing on the cake”, generating about 15% of the company’s revenue.
US airline stocks were down sharply on 3 April, largely in response to US-imposed tariffs on longtime trade partners.
