Sun Country Airlines Holdings, Inc. (SNCY) has disclosed a new risk, in the Capital Markets category.
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Sun Country Airlines Holdings, Inc. faces a tangible business risk as the appreciation of the U.S. dollar could impair its lessees’ ability to meet their lease obligations. With revenues predominantly in local currencies yet significant liabilities in U.S. dollars, lessees may struggle financially if the dollar strengthens. This risk is acute for non-U.S. airlines focused on domestic markets, where rapid and unpredictable currency fluctuations, such as those seen in 2022, can exacerbate the issue. Consequently, Sun Country Airlines may suffer from revenue losses and a dip in net income if lessees default on lease payments.
Overall, Wall Street has a Moderate Buy consensus rating on SNCY stock based on 3 Buys and 3 Holds.
To learn more about Sun Country Airlines Holdings, Inc.’s risk factors, click here.
