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

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) has received formal approval from the Civil Aviation Authority of El Salvador for its subsidiary, Vuela El Salvador, to operate as a national air carrier. Starting in September 2021, Volaris El Salvador will provide regular and non-regular international air transportation services. This expansion aims to extend Volaris' ultra-low-cost model across Central America, offering competitive base fares and enhancing service options in the region.

Volaris (NYSE: VLRS) reported strong preliminary traffic results for July 2021, achieving a 23.2% increase in domestic demand and 10.3% in international markets compared to July 2019. The airline transported 2.3 million passengers, marking a record month that is 16% higher than pre-pandemic levels. Load factor stood at 89.5%. Volaris anticipates a capacity growth of 20-22% for Q3 2021, despite concerns over the Delta variant, indicating resilient demand in the airline sector.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) announced the appointment of KPMG as its independent external auditor, effective from the third quarter of 2021, replacing EY, who served for 15 years. The decision aligns with best corporate practices as per the Mexican Code of Corporate Governance Principles. Volaris acknowledges EY's professional service during their tenure and will continue a business relationship for other services. The company's future performance remains uncertain and dependent on multiple factors.

Volaris (NYSE: VLRS) reported robust Q2 2021 results, showcasing a 38% increase in total operating revenue to Ps.11,501 million compared to Q2 2019. Net income surged by 1,188% to Ps.1,538 million, with an improved net margin of 13.4%. The airline's EBITDAR climbed 103% to Ps.4,696 million, achieving a margin of 40.8%. Passenger volume reached 6.2 million, marking a 10% growth. Cash and cash equivalents stood at Ps.10,534 million, which is 44% of the last twelve months' operating revenue. Volaris is on track to enhance its fleet with more A320neo aircraft, aligning with sustainability goals.

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.