Volaris Reports December 2024 Traffic Results: Load Factor of 88%

Rhea-AI Summary

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.

Positive

• Load factor increased by 2.2 pp to 87.6%
• International RPMs grew by 9.0%
• International passenger traffic increased by 10.1%
• 99% flight completion rate achieved for full year
• Network showing stability after engine inspections

Negative

• Overall ASM capacity decreased by 4.5% YoY
• Total RPMs declined by 2.1%
• Domestic RPMs decreased by 8.3%
• Total passenger count dropped by 1.9%
• YTD total RPMs down 11.8%
• YTD total ASMs decreased 12.6%

Insights

Aviation Industry Analyst

The December 2024 traffic results for Volaris reveal a complex operational landscape. The 4.5% year-over-year decrease in ASM capacity, while concerning, performed better than anticipated due to improved engine recovery rates. The 87.6% load factor represents strong demand management, showing a 2.2 percentage point improvement from the previous year despite capacity constraints.

The divergence between domestic and international performance is noteworthy - domestic RPMs declined by 8.3% while international RPMs grew by 9.0%. This shift suggests successful market diversification strategy implementation during the Pratt & Whitney engine inspection challenges. The 99% completion rate for the full year demonstrates remarkable operational resilience.

For investors, the key takeaway is Volaris' ability to maintain high load factors while managing significant operational challenges. The improved international performance partially offsets domestic weakness, indicating effective network optimization. The engine inspection impact appears to be stabilizing, though continued short-term ASM fluctuations should be expected.

Financial Performance Analyst

The traffic metrics paint a picture of strategic adaptation to operational constraints. The ability to achieve an 87.6% load factor while reducing capacity suggests strong revenue management capabilities. The 10.1% growth in international passengers versus a 5.9% decline in domestic passengers indicates a deliberate shift in network strategy to optimize returns.

The year-to-date figures show more substantial impacts, with total RPMs down 11.8% and total passengers decreased by 12.0%. However, the company's ability to maintain load factors above 86% system-wide suggests effective capacity management and pricing strategies. The international segment's resilience, showing positive growth in both RPMs and passenger numbers, provides a valuable hedge against domestic market challenges.

MEXICO CITY, Jan. 08, 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 December 2024 preliminary traffic results.

In December, Volaris' ASM capacity decreased by 4.5% year-over-year due to the Pratt & Whitney engine inspections, slightly better than forecast as we recovered more engines than anticipated. Volaris transported 2.8 million passengers during the month with a load factor of 87.6%, a 2.2 pp increase from last year. RPMs for the month declined by 2.1%, with Mexican domestic RPMs down 8.3%, while international RPMs increased by 9.0%. Compared to December 2023, we are now seeing stability across the network and the return to service of aircraft that have completed their required engine inspections. While we anticipate some ongoing fluctuations in ASM production as engine inspections are completed, we remain committed to delivering a reliable network for our customers.

Enrique Beltranena, Volaris’ President and CEO, said: “We are pleased with the execution of our strategy and continue to prioritize the operational performance and network stability as we work through the Pratt & Whitney required engine inspections. We remain committed to high levels of customer satisfaction and operational excellence, reinforcing Volaris as the preferred airline in its core markets. As a result of the hard work of our ambassadors, we delivered a 99% completion rate for the full year in a challenging operating environment. I would like to thank all of our ambassadors for their efforts in 2024 and look forward to continuing excellence in 2025”.

	December 2024		December 2023		Variance		YTD December 2024		YTD December 2023		Variance
RPMs (million, scheduled & charter)
Domestic	1,658		1,809		-8.3%		18,161		22,422		-19.0%
International	1,112		1,020		9.0%		11,344		11,027		2.9%
Total	2,770		2,829		-2.1%		29,505		33,449		-11.8%
ASMs (million, scheduled & charter)
Domestic	1,820		2,025		-10.1%		20,030		25,630		-21.8%
International	1,340		1,286		4.2%		13,960		13,260		5.3%
Total	3,161		3,311		-4.5%		33,990		38,890		-12.6%
Load Factor (%, RPMs/ASMs)
Domestic	91.1	%	89.3	%	1.8 pp		90.7%		87.5%		3.2 pp
International	82.9	%	79.3	%	3.7 pp		81.3%		83.2%		(1.9) pp
Total	87.6	%	85.4	%	2.2 pp		86.8%		86.0%		0.8 pp
Passengers (thousand, scheduled & charter)
Domestic	1,984		2,108		-5.9%		21,705		25,909		-16.2%
International	777		706		10.1%		7,768		7,588		2.4%
Total	2,761		2,813		-1.9%		29,473		33,497		-12.0%

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 221 and its fleet from 4 to 143 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. Volaris has received the ESR Award for Social Corporate Responsibility for fifteen consecutive years. 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 December 2024?

Volaris achieved a load factor of 87.6% in December 2024, representing a 2.2 percentage point increase from December 2023.

How many passengers did Volaris (VLRS) transport in December 2024?

Volaris transported 2.8 million passengers in December 2024, showing a slight decrease of 1.9% compared to December 2023.

What was the impact of Pratt & Whitney engine inspections on Volaris (VLRS) capacity?

The Pratt & Whitney engine inspections led to a 4.5% year-over-year decrease in ASM capacity for December 2024.

How did Volaris (VLRS) international traffic perform in December 2024?

Volaris' international traffic showed strong growth with RPMs increasing by 9.0% and passenger numbers rising by 10.1% compared to December 2023.

What was Volaris (VLRS) flight completion rate for 2024?

Volaris achieved a 99% flight completion rate for the full year 2024 despite challenging operating conditions.