Controladora Vuela Compania de Aviacion, S.A.B. de C.V. Stock Price, News & Analysis

Controladora Vuela Compañía de Aviación (NYSE: VLRS) will release its Q2 2021 earnings after market close on July 15, 2021. Management will conduct a conference call on July 16, 2021, at 10:00 AM ET to discuss the results. The earnings report will be available on the Company’s website. Participants must connect 10 minutes before the call. A replay will be available via webcast afterward. Volaris operates as an ultra-low-cost airline serving Mexico, the U.S., and Central America, managing over 180 routes with a fleet of 93 aircraft.

Volaris (NYSE: VLRS) reported significant growth in its June 2021 traffic results, with passenger demand increasing 18.9% domestically and 15.5% internationally compared to June 2019. The airline transported 2.1 million passengers, reflecting a 14% rise over pre-pandemic levels. Volaris added 20% capacity domestically and 14.2% internationally, achieving a robust load factor of 89.1%. Cumulatively, the airline's operations show a recovery in air travel demand, essential for future profitability.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE: VLRS) will announce its Q2 2021 earnings on July 15, 2021, after market close. A conference call to discuss results is scheduled for July 16, 2021, at 10:00 a.m. ET. The call will feature key executives including Enrique Beltranena, CEO, and Jaime Pous, CFO. Participants can dial in via provided numbers for the US, Mexico, and international locations. The earnings release will be accessible on the investor relations section of Volaris's website.

Volaris has appointed José Alejandro de Iturbide Gutiérrez as the new Chief Legal Officer, effective June 16, 2021. Gutiérrez brings extensive legal experience, previously serving as General Counsel at Grupo Financiero Citibanamex, GE, and Barclays Capital. His appointment underscores Volaris' commitment to regulatory compliance and corporate governance, aimed at enhancing shareholder value. The company has significantly expanded since its inception in 2006, now operating 181 routes with a fleet of 88 aircraft, connecting various cities across Mexico, the U.S., and Central America.

On June 2, 2021, Volaris (NYSE: VLRS) reported its preliminary traffic results for May 2021, showing a resurgence in demand. Domestic traffic surged by 16.3% compared to May 2019, while international traffic increased by 19.3%. The airline transported 2.2 million passengers, reflecting a 12% uptick from pre-pandemic levels. Volaris maintained a high load factor of 87.8% and increased capacity in both domestic and international markets. These results suggest strong recovery trends for the airline.

On May 25, 2021, the FAA downgraded Mexico's aviation safety rating from Category 1 to Category 2, impacting the oversight of the Mexican Federal Civil Aviation Authority (AFAC). This downgrade does not reflect on Volaris' safety profile, which remains unchanged. New service routes and aircraft additions are prohibited during AFAC's corrective measures. Volaris can still grow its fleet under its Mexican certificate. Additionally, codeshare partner Frontier will withdraw its code from Volaris flights, but customers can still book tickets through both airlines' websites. Volaris supports efforts to restore Mexico's safety rating.

Volaris (NYSE: VLRS) has revised its second-quarter 2021 guidance, indicating notable improvements in sales for both domestic and international markets. Projected capacity is set at 110% to 113% of 2019 levels, with an expected positive cash generation of US$800,000 to US$1,000,000 per day. The company anticipates total operating revenues per available seat mile to rise by 8% to 10% compared to 2019. The EBITDAR margin is projected to be in the low to mid-thirty percent range, reflecting improved operational performance.

Volaris (NYSE: VLRS) reported April 2021 traffic results, showing a recovery in domestic demand with a 17.8% increase in ASMs compared to April 2019. Total capacity reached 107.3% of April 2019 levels, while demand measured by RPMs was at 104.6%. The airline transported 1.9 million passengers, 3.3% higher than in April 2019, with a load factor of 82.4%. However, international capacity declined by 16.7% due to continued COVID-19 restrictions. For Q2 2021, Volaris expects to operate approximately 110% of its 2019 capacity.

On April 30, 2021, Volaris (NYSE: VLRS) announced the filing of its annual report on Form 20-F for the fiscal year ended December 31, 2020, with the SEC. Volaris is an ultra-low-cost carrier with operations in Mexico, the U.S., and Central America, expanding its fleet from 4 to 87 aircraft since March 2006. The airline offers low base fares, catering to cost-conscious travelers with 170 routes and up to 410 daily flight segments. For further details or to request hard copies of financial statements, shareholders can contact Investor Relations.