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

Volaris (NYSE: VLRS) has released its January 2025 traffic results, showing mixed performance. The airline's ASM capacity increased by 4.7% year-over-year, while RPMs grew by 2.9%. The company transported 2.6 million passengers, with domestic RPMs rising 0.9% and international RPMs increasing by 5.9%. However, the load factor decreased by 1.5 percentage points to 86.6%.

The company noted softness in VFR traffic to the U.S. due to geopolitical uncertainty, leading to fare adjustments to maintain healthy load factors. For 2025, Volaris plans to grow total ASMs by 13-15% compared to 2024. However, overall capacity will remain relatively flat compared to 2023 due to Pratt & Whitney engine-related AOGs, with domestic capacity in Mexico expected to be 11% below 2023 levels, while international capacity is projected to be up 20%.

Volaris (NYSE: VLRS) has released its December 2024 traffic results, reporting a load factor of 87.6%, representing a 2.2 percentage point increase from the previous year. The airline transported 2.8 million passengers during December, while experiencing a 4.5% year-over-year decrease in ASM capacity due to Pratt & Whitney engine inspections.

The company's RPMs declined by 2.1% overall, with domestic RPMs down 8.3% while international RPMs grew by 9.0%. Despite challenges, Volaris achieved a 99% completion rate for the full year. The airline is seeing network stability and the return of aircraft that completed engine inspections, though some ASM production fluctuations are expected as inspections continue.

For the full year 2024, Volaris recorded total RPMs of 29,505 million (-11.8% YoY) and ASMs of 33,990 million (-12.6% YoY), maintaining an overall load factor of 86.8%, up 0.8 percentage points from 2023.

Volaris reported its November 2024 traffic results, showing a 3.7% decrease in ASM capacity year-over-year due to Pratt & Whitney engine inspections. The airline transported 2.6 million passengers with an 86.8% load factor, down 3.0 percentage points from last year. RPMs declined 6.9%, with domestic RPMs falling 10.5% while international RPMs remained relatively stable.

The company's CEO, Enrique Beltranena, noted solid demand across the network, particularly in the domestic market, and highlighted strategic investments in transborder capacity for the December high season. Year-to-date performance remains strong despite GTF engine inspection challenges.

Volaris reported its October 2024 traffic results, showing mixed performance. The airline's ASM capacity decreased by 6.8% year-over-year due to Pratt & Whitney engine inspections. The company transported 2.5 million passengers with a load factor of 87.4%, down 2.1 percentage points from last year. Total RPMs declined by 9.0%, with domestic RPMs falling 14.4% while international RPMs grew 1.5%. The CEO highlighted strong demand across markets and robust booking trends through the holiday season, focusing on sustained profitability through prudent capacity recovery and aggressive cost management.

Volaris reported its Q3 2024 financial results, achieving net income of $37 million with earnings per ADS of $32 cents. Total operating revenues reached $813 million, a 4% decrease year-over-year. The company's EBITDAR increased 52% to $315 million with a margin of 38.7%. Despite challenges from Pratt & Whitney engine inspections causing reduced capacity, TRASM increased 12% to $9.38 cents. The company maintained strong liquidity with $830 million in cash and equivalents, representing 26% of LTM operating revenue. The net debt-to-LTM EBITDAR ratio improved to 2.7x from 3.5x year-over-year.

Volaris, the ultra-low-cost carrier serving Mexico, the United States, Central, and South America, reported its September 2024 preliminary traffic results. Key points include:

- ASM capacity decreased by 12.8% year-over-year due to accelerated Pratt & Whitney engine inspections and aircraft groundings
- Transported 2.3 million passengers with a load factor of 85.0%, a 1.2 pp increase from last year
- RPMs decreased by 11.5%, with domestic RPMs down 18.5% and international RPMs up 2.1%

CEO Enrique Beltranena noted strong demand in both domestic and international markets for Q3. The company expects more normalized comparables in Q4, considering the timing of engine inspections and the recovery of Cat 1 in Q4 2023. The engine inspection process is progressing as forecasted, and the company's performance aligns with expectations.

Volaris, a leading ultra-low-cost carrier, reported its August 2024 traffic results. The company experienced a 15.1% decrease in ASM capacity year-over-year due to accelerated Pratt & Whitney engine inspections and resulting aircraft groundings. Despite these challenges, Volaris transported 2.6 million passengers with a load factor of 87.0%, flat against last year's levels.

Key highlights include:

• RPMs decreased by 15.3%, with domestic RPMs down 22.0% and international RPMs flat
• Mexican domestic ASMs decreased by 22.5%, while international ASMs remained stable
• The company reaffirmed its annual capacity guidance, indicating an approximate 14% reduction
• Volaris concluded the summer high season with strong operational performance and demand

CEO Enrique Beltranena stated that the strategic fleet mitigation plan is on track and delivering favorable outcomes, despite having almost 30% of the fleet grounded.

Volaris (NYSE: VLRS, BMV: VOLAR), the ultra-low-cost carrier serving Mexico, the United States, Central, and South America, has released its 2023 Integrated Annual Report titled "Total Vision: Exploring New Perspectives." The report is now available on Volaris' Investor Relations webpage. It's important to note that the information in this report is unaudited and does not provide future performance insights. Volaris emphasizes that future performance depends on various factors and past performance should not be considered indicative of future results.

Volaris, the ultra-low-cost carrier serving Mexico, the United States, Central, and South America, reported its July 2024 preliminary traffic results. Key highlights include:

- ASM capacity decreased by 15.0% year-over-year due to accelerated Pratt & Whitney engine inspections and aircraft groundings
- Load factor increased by 2.0 pp YoY to 89.8%
- RPMs decreased by 13.0%
- Mexican domestic RPMs decreased by 20.0%, while international RPMs increased by 1.0%
- Transported 2.7 million passengers during the month

The company's strategic fleet mitigation plan is on track, with a well-balanced market mix and increased presence in the cross-border market, strengthening unit revenues. Booking curves indicate robust performance for the summer high season.