Sun Country CEO sees higher fares from pilot shortage

Sun Country Airlines faces challenges hiring across its business amid the labor issues facing US companies. But even as it struggles to find enough pilots and maintenance technicians to grow as fast as it wants, executives see a silver lining in the higher airfares that are likely from a slower airline recovery. “I believe staffing challenges will result in downward pressure on capacity and therefore, be positive to fares,” Sun Country CEO Jude Bricker said during the carrier’s Q4 and full-year results call on Tuesday. Bricker has good reason to find a silver lining. The airline posted a 9% increase to $111.48 in its base fare per passenger during Q4 compared to the three months prior. And year-over-year, fares were up 28%. The upward trend is a matter of supply and demand. While the Omicron variant hit demand for air travel in January and February, airlines — Sun Country included — remain confident in throngs of vacationers returning to the skies for spring break in March and April, and then again this summer. That return is all well and good for airlines but it means fares will rise if the industry cannot resume — or exceed — its pre-pandemic schedules in lock step with demand. And after thousands of pilots retired during the pandemic, the timeline of the supply-side recovery is in question amid the growing staffing shortages.<br/>