Controladora Vuela Compañía de Aviación, S.A.B. de C.V. reports news under the Volaris name as an ultra-low-cost carrier serving Mexico, the United States, Central America and South America. Coverage centers on point-to-point airline operations, low base fares, ancillary revenue, domestic and international traffic, and the company’s NYSE-listed ADR and BMV-listed shares.
Recurring updates include monthly traffic results using ASM capacity, RPMs, passenger volumes and load factor, as well as quarterly financial results covering revenue per passenger, fuel costs, capacity deployment, fleet productivity and cross-border demand. Company news also includes operational disruptions, shareholder meeting resolutions, bylaw amendments and other governance matters tied to its Mexican public-company structure.
On December 2, 2020, Volaris (NYSE: VLRS) announced strong preliminary traffic results for November 2020, achieving a capacity of 98% and a demand of 88.7% compared to November 2019. The airline transported 1.6 million passengers, marking a 14% increase from October. The booked load factor stood at 80.5%. Additionally, Volaris launched seven new international routes and plans to operate 100% of its capacity in December. This strong recovery demonstrates Volaris' ability to capitalize on demand in the VFR and leisure segments amid the ongoing COVID-19 challenges.
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Volaris (NYSE: VLRS) reported strong recovery in October 2020 traffic results, with capacity at 84.3% compared to last year and demand at 80.8%, up 13.3% from September. The airline transported 1.4 million passengers, marking a 14% increase from the previous month. October's load factor reached 82.1%, up 7.7 percentage points versus September. Volaris announced new domestic and international routes and plans to operate at 94% capacity in November, including an upcoming relaunch of Central American operations.
Aircastle Limited completed its first sale and leaseback of an A320 NEO aircraft with Volaris, marking the addition of the 28th NEO to the airline's fleet. The long-term lease agreement spans 12 years, with a second aircraft delivery expected later this month. CEO Mike Inglese emphasized the company’s ability to respond quickly to market needs, while Volaris acknowledged Aircastle's role in facilitating this transaction amid a recovering airline market in Mexico.
Volaris (VLRS) reported its third quarter 2020 financial results amid ongoing challenges from the COVID-19 pandemic. Total operating revenues fell by 50.3% year-over-year to Ps.4,724 million, with net loss reaching Ps.2,175 million, showing a significant drop from a previous operating income of Ps.1,703 million. Despite a 38.3% decline in passenger traffic, the company managed to increase ancillary revenue per passenger by 13.9%. Operating expenses per available seat mile (CASM) rose 20.9%, impacting the operating margin negatively to -47.1%. Volaris maintains a positive net cash position of Ps.2,387 million.
Volaris (NYSE: VLRS) reported its preliminary traffic results for September 2020, indicating a strong recovery. Capacity, measured by ASMs, stood at 84.2% compared to last year, while demand, measured by RPMs, reached 75.6%. The airline transported 1.3 million passengers, a 4.1% increase from August 2020, with a booked load factor of 74.4%. Volaris aims to operate 85% of capacity in October, with effective marketing strategies targeting first-time flyers being instrumental in this recovery process.
Volaris (NYSE: VLRS), the ultra-low-cost airline, announced adjustments to its hedging relationships as of June 30, 2020. The changes, prompted by lower jet fuel consumption due to COVID-19, resulted in a Ps.120 million benefit in the company’s net loss for the six months ended June 30, 2020. Additionally, Ps.53 million were reclassified to operating expenses. Total operating revenues for the period were Ps.1,526 million, with an operating loss of Ps.2,347 million. The total assets reported were Ps.67,783 million with total liabilities at Ps.71,951 million.
Volaris (NYSE: VLRS) has announced an extraordinary general shareholders meeting scheduled for September 18, 2020. The company plans to raise up to MXN 3.5 billion to enhance its capital and leverage potential growth opportunities. Shareholder approval is sought for new share issuance, which may include a rights offering or the sale of shares. This capital raise aims to improve Volaris' liquidity amid the challenges posed by the COVID-19 pandemic. The company's ultra-low-cost model positions it to capitalize on domestic market shifts and expand its operations.
On September 3, 2020, Volaris (NYSE: VLRS) reported its preliminary traffic results for August 2020, indicating a robust recovery in the Mexican aviation market. Capacity, measured by ASMs, improved to 78.6% year-over-year, with a 21.8% increase from July 2020. Demand, as RPMs, reached 68.4% compared to last year, marking a 20.8% rise monthly. Volaris transported 1.2 million passengers in August, equating to 64.9% of August 2019's figures. The load factor was 72.6%, reflecting a 10.9 pp decrease year-over-year due to increased capacity. Volaris plans to operate at approximately 75% capacity in September.
Volaris (NYSE: VLRS) announced a plan to operate approximately 75% of its capacity in September 2020, measured by available seat miles (ASMs), reflecting a recovery in demand amid the COVID-19 pandemic. This capacity is 86% of what was available in September 2019. The airline's capacity has gradually increased from 11% in May to 70% in August 2020, marking significant growth in operations. Volaris remains committed to biosecurity measures for the safety of passengers and staff. However, the company noted that past performance cannot predict future results.