
(in thousands)	June 30, 2026		December 31, 2025
Fixed-rate debt and finance lease obligations due through 2032	$	1,860,678	$	1,062,935
Variable-rate debt due through 2038	918,776		736,681
Total long-term debt and finance lease obligations, net of related costs	2,779,454		1,799,616
Less current maturities, net of related costs	318,676		118,075
Long-term debt and finance lease obligations, net of current maturities and related costs	$	2,460,778	$	1,681,541

Weighted average fixed-interest rate on debt	5.7%		6.7%
Weighted average variable-interest rate on debt	5.8%		5.9%


				Interest Rate(s) Per Annum at			Balance as of
(dollars in thousands)	Maturity dates			June 30, 2026			June 30, 2026		December 31, 2025
Senior secured notes	2027	-	2031	7.13%	—	7.25%	$	675,476	$	403,009
Consolidated variable interest entities	2028	-	2031	2.92%	-	5.19%	108,731		95,111
Revolving credit facilities	2028	-	2030	N/A			—		—
Debt secured by aircraft, engines, other equipment and real estate	2028	-	2038	1.87%	-	7.78%	1,186,936		915,084
Finance leases	2026	-	2032	4.44%	-	7.02%	648,611		403,060
Enhanced equipment trust certificates	2027	-	2031	4.13%	-	7.10%	189,164		—


Total debt and finance lease obligations							$	2,808,918	$	1,816,264
Related costs							(29,464)		(16,648)
Total debt and finance lease obligations, net of related costs							$	2,779,454	$	1,799,616


(in thousands)	As of June 30, 2026
Remaining in 2026	$	196,647
2027	284,173
2028	283,169
2029	361,867
2030	266,920
2031	829,283
Thereafter	557,395
Total debt and finance lease obligations, net of related costs	$	2,779,454

In June 2026, the Company issued $650.0 million in aggregate principal amount of 7.125% Senior Secured Notes due 2031 (the “2031 Notes”) pursuant to an Indenture, dated as of June 24, 2026. The 2031 Notes are secured by first priority security interests in, subject to permitted liens, substantially all of the property and assets of the Company and its subsidiaries, except that the collateral package excludes aircraft, aircraft engines, real property and certain other assets. The collateral also secures the Company's senior secured revolving loan facility on a pari passu basis. The 2031 Notes bear interest at a fixed rate of 7.125 percent per annum, payable in cash on January 1 and July 1 of each year, beginning January 1, 2027. The 2031 Notes will mature on July 1, 2031.

The 2031 Notes contain certain covenants that limit the ability of the Company to, among other things: (i) make restricted payments; (ii) incur certain indebtedness or issue preferred stock; (iii) create or incur certain liens; (iv) dispose of loyalty program or brand intellectual property collateral; (v) merge, consolidate or sell all or substantially all assets; and (vi) enter into certain transactions with affiliates.

The 2031 Notes also require the Company to comply with certain affirmative covenants, including maintaining a minimum aggregate amount of liquidity of $300.0 million. If the Company fails to satisfy the minimum liquidity requirement, the Company will be required to pay additional interest on all outstanding 2031 Notes in an amount equal to 2.0% per annum of the principal amount of such 2031 Notes until the Company demonstrates compliance with the liquidity requirement.

The Company used the net proceeds from the sale of the 2031 Notes, to fund the purchase and redemption of approximately $377.5 million aggregate principal amount of its outstanding 7.250% Senior Secured Notes due 2027 pursuant to a tender offer and to pay related accrued interest and satisfy transaction fees and expenses. The remaining proceeds will be used for general corporate purposes.

In July 2026, the Company repurchased an additional $17.4 million aggregate principal amount of the 7.250% Senior Secured Notes due 2027 pursuant to the tender offer.

The Company evaluates ownership, contractual lease arrangements and other interests in entities to determine if they are variable interest entities ("VIEs") based on the nature and extent of those interests. The Company consolidates a VIE when, among other criteria, it has the power to direct the activities that most significantly impact the VIE’s economic performance as well as the obligation to absorb losses or the right to receive benefits of the VIE, thus making the Company the primary beneficiary of the VIE.

In March 2026, the Company, through a wholly owned subsidiary, entered into similarly structured agreements with trusts to borrow $20.5 million collateralized by aircraft engines. The trusts were funded at inception. The borrowings bear interest at fixed rates and are payable in monthly installments through March 2031, at which time the Company will have purchase options at fixed amounts.

In March 2021, the Company entered into a revolving credit facility, which, as amended to date, entitles it to borrow up to $100.0 million. In April 2025, the agreement was amended to extend the maturity date to April 2028. The borrowing ability under the facility is based on the value of the aircraft and engines placed into the collateral pool. Amounts drawn under the facility will bear interest at a floating rate based on SOFR. As of June 30, 2026, the facility remains undrawn.

In August 2022, the Company entered into a credit agreement that provided a senior secured revolving loan facility of $75.0 million, with an original term of 57 months. The facility is secured by the same collateral that secures the 2027 Senior Secured Notes and 2031 Senior Secured Notes, and borrowings under the facility will bear interest at a floating rate based on SOFR. In December 2025, the Company amended the revolving loan facility to increase the total commitment to $150.0 million and extend the maturity date to December 5, 2030. As of June 30, 2026, the facility remains undrawn.

In April 2026, the Company entered into credit agreements providing financing commitments of up to $176.0 million, to be secured by new aircraft upon delivery. During the three months ended June 30, 2026, the Company borrowed $44.0 million under the agreements and $132.0 million remained undrawn as of June 30, 2026. The loans bear interest at a variable rate based on three-month SOFR and are payable in quarterly installments over a term of 10 years.

In April 2026, the Company entered into a credit agreement providing financing commitments of up to $115.0 million secured by aircraft. During the three months ended June 30, 2026, the Company borrowed the entirety of the $115.0 million available under the agreement, resulting in the facility being fully drawn. The borrowing carries a variable interest rate based on three-month SOFR, matures in three years, and is payable in quarterly installments with a balloon payment at maturity.

In May 2026, the Company entered into a credit agreement with a borrowing capacity of up to $85.6 million to be secured by unencumbered aircraft and new aircraft upon delivery. During the three months ended June 30, 2026, the Company borrowed approximately $40.6 million under the agreement and $45.0 million remains undrawn as of June 30, 2026. The borrowing bears interest at a variable rate based on three-month SOFR and is payable in quarterly installments over a term of 12 years.

In November 2023, the Company entered into a pre-delivery deposit financing facility to borrow up to $158.0 million, secured by the Company's purchase rights for certain Boeing 737 MAX aircraft. The facility bears a floating interest rate based on SOFR and was originally due upon delivery of each aircraft or no later than June 30, 2025. In April 2025, the Company entered into an amendment to extend the maturity date of the agreement to no later than March 2027. The Company drew a total of $132.6 million on the facility between November 2023 and February 2024, and drew the remaining $25.1 million of available capacity during the three months ended June 30, 2026. During the second quarter of 2026, the Company made prepayments totaling $13.8 million as aircraft were delivered to the Company.

In September 2025, Sun Country entered into a term loan facility (the "2025 Term Loan Facility") and pledged five aircraft as collateral. The 2025 Term Loan Facility bears interest at a fixed rate and is repaid in quarterly installments with a balloon payment upon maturity in September 2032. The fair value of the facility was $103.6 million as of the acquisition date.

In March 2022, Sun Country arranged for the issuance of the 2022-1 EETC and pledged 13 aircraft as collateral. The equipment notes bear interest at a fixed rate and are repaid in semiannual principal and interest payments each March and September, through March 2031. The fair value of the equipment notes outstanding under the 2022-1 EETC was $102.1 million as of the acquisition date.

In December 2019, Sun Country arranged for the issuance of the 2019-1 EETC and pledged 13 aircraft as collateral. The equipment notes bear interest at a fixed rate and are repaid in semiannual principal and interest payments each June and December, through December 2027. The fair value of the equipment notes outstanding under the 2019-1 EETC was $101.4 million as of the acquisition date.