Volaris Reports April 2025 Traffic Results: Load Factor of 82%

Rhea-AI Summary

Volaris (NYSE: VLRS) reported its April 2025 traffic results, showing mixed performance. The ultra-low-cost carrier's Available Seat Miles (ASM) capacity increased by 16.9% year-over-year, while Revenue Passenger Miles (RPMs) grew by 12.7%. The airline transported 2.6 million passengers, marking a 14.8% increase from April 2024. However, the load factor decreased by 3.1 percentage points to 81.6%. Mexican domestic RPMs rose by 12.9%, and international RPMs increased by 12.2%. CEO Enrique Beltranena acknowledged April's complexity in forecasting capacity due to macro volatility, emphasizing the company's focus on implementing competitive pricing strategies while prioritizing customer demand and sustained profitability.

Positive

• Total passenger traffic increased 14.8% YoY to 2.6 million passengers
• RPMs grew 12.7% YoY, with domestic up 12.9% and international up 12.2%
• ASM capacity expanded by 16.9% YoY, showing strong growth

Negative

• Load factor decreased by 3.1 percentage points YoY to 81.6%
• International load factor particularly weak at 73.9%
• Capacity growth (16.9%) outpacing demand growth (12.7%) suggests potential overcapacity

Insights

Airline Industry Analyst

Volaris shows strong capacity growth but declining load factors, suggesting demand challenges despite passenger increases.

Volaris' April 2025 traffic results reveal a company in expansion mode amid challenging conditions. The carrier increased capacity (ASMs) by 16.9% year-over-year while passenger traffic (RPMs) grew 12.7%. This growth mismatch resulted in a 3.1 percentage point decline in load factor to 81.6%, indicating capacity outpacing demand.

The domestic Mexican market performed relatively better with a 86.9% load factor compared to the international segment at just 73.9%. This substantial difference suggests Volaris is facing greater challenges filling seats on international routes, which typically have higher operating costs per flight hour.

Total passenger count increased to 2.6 million, up 14.8% year-over-year, but the lower load factor raises concerns about revenue efficiency. In the ultra-low-cost carrier model, high load factors are crucial for profitability as they spread fixed costs across more passengers.

CEO Beltranena's acknowledgment of April as "one of the most complex months to forecast capacity" signals market unpredictability. His reference to "competitive pricing strategies" likely indicates fare discounting to stimulate demand, which could pressure unit revenue despite the "optimizing TRASM" objective.

The year-to-date metrics show similar but less pronounced trends, with the cumulative load factor down 2.0 percentage points to 84.4%, suggesting April represents an acceleration of the capacity-demand imbalance. The company's stated focus on "cautiously modulate growth" indicates a potential strategic pivot from aggressive expansion toward more measured capacity additions aligned with actual demand patterns.

MEXICO CITY, May 07, 2025 (GLOBE NEWSWIRE) -- Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE: VLRS and BMV: VOLAR) (“Volaris” or “the Company”), the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central and South America, reports its April 2025 preliminary traffic results.

In April, Volaris’ ASM capacity increased by 16.9% year-over-year, while RPMs for the month grew by 12.7%. Mexican domestic RPMs increased 12.9%, while international RPMs increased 12.2%. As a result, the load factor decreased by 3.1 percentage points year-over-year to 81.6%. During the month, Volaris transported 2.6 million passengers.

Enrique Beltranena, Volaris’ President and CEO, said: “April figures reflect one of the most complex months to forecast capacity, given the macro volatility. We grew RPMs in both our domestic and international markets and, staying true to our ULCC model, proactively implemented competitive pricing strategies to sustain high occupancy levels while optimizing TRASM. Looking ahead, we continue to cautiously modulate growth, grounded in two guiding priorities: customer demand and sustained profitability.”

	Apr 2025		Apr 2024		Variance		YTD Apr 2025		YTD Apr 2024		Variance
RPMs (million, scheduled & charter)
Domestic	1,596		1,413		12.9	%	6,132		5,742		6.8	%
International	932		830		12.2	%	3,858		3,647		5.8	%
Total	2,528		2,243		12.7	%	9,990		9,389		6.4	%
ASMs (million, scheduled & charter)
Domestic	1,836		1,568		17.1	%	6,944		6,336		9.6	%
International	1,260		1,079		16.7	%	4,889		4,528		8.0	%
Total	3,096		2,647		16.9	%	11,833		10,864		8.9	%
Load Factor (%, RPMs/ASMs)
Domestic	86.9	%	90.1	%	(3.2) pp		88.3	%	90.6	%	(2.3) pp
International	73.9	%	76.9	%	(3.0) pp		78.9	%	80.5	%	(1.6) pp
Total	81.6	%	84.7	%	(3.1) pp		84.4	%	86.4	%	(2.0) pp
Passengers (thousand, scheduled & charter)
Domestic	1,967		1,716		14.6	%	7,375		6,701		10.1	%
International	649		563		15.4	%	2,659		2,501		6.3	%
Total	2,616		2,278		14.8	%	10,034		9,202		9.0	%

The information included in this report has not been audited and does not provide information on the Company’s future performance. Volaris’ future performance depends on several factors. It cannot be inferred that any period’s performance or its comparison year-over-year will indicate a similar performance in the future. Figures are rounded for convenience purposes.

Glossary

Revenue passenger miles (RPMs): Number of seats booked by passengers multiplied by the number of miles flown.

Available seat miles (ASMs): Number of seats available for passengers multiplied by the number of miles flown.

Load factor: RPMs divided by ASMs and expressed as a percentage.

Passengers: The total number of passengers booked on all flight segments.

Investor Relations Contact
Ricardo Martínez / ir@volaris.com

Media Contact
Israel Álvarez / ialvarez@gcya.net

About Volaris
*Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (“Volaris” or “the Company”) (NYSE: VLRS and BMV: VOLAR) is an ultra-low-cost carrier, with point-to-point operations, serving Mexico, the United States, Central, and South America. Volaris offers low base fares to build its market, providing quality service and extensive customer choice. Since the beginning of operations in March 2006, Volaris has increased its routes from 5 to more than 229 and its fleet from 4 to 145 aircraft. Volaris offers more than 500 daily flight segments on routes that connect 44 cities in Mexico and 29 cities in the United States, Central, and South America, with one of the youngest fleets in Mexico. Volaris targets passengers who are visiting friends and relatives, cost-conscious business and leisure travelers in Mexico, the United States, Central, and South America. For more information, please visit ir.volaris.com. Volaris routinely posts information that may be important to investors on its investor relations website. The Company encourages investors and potential investors to consult the Volaris website regularly for important information about Volaris.

FAQ

What was Volaris (VLRS) load factor in April 2025?

Volaris reported a load factor of 81.6% in April 2025, which was 3.1 percentage points lower than April 2024's 84.7%.

How many passengers did Volaris transport in April 2025?

Volaris transported 2.6 million passengers in April 2025, representing a 14.8% increase compared to April 2024.

What was the growth in Volaris' domestic vs international RPMs in April 2025?

In April 2025, Volaris' domestic RPMs increased by 12.9% while international RPMs grew by 12.2% year-over-year.

How much did Volaris increase its capacity (ASMs) in April 2025?

Volaris increased its ASM capacity by 16.9% year-over-year in April 2025, with domestic ASMs up 17.1% and international ASMs up 16.7%.