Volaris Reports Financial Results for the Second Quarter 2021
07/15/2021 - 06:35 PM
MEXICO CITY , July 15, 2021 /PRNewswire/ -- Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE: VLRS and BMV: VOLAR) ("Volaris" or "The Company"), the ultra-low-cost airline serving Mexico , the United States of America , and Central America, today announces its financial results for the second quarter 2021[1] .
Second Quarter 2021 Highlights (All metrics are compared to 2Q 2019 unless otherwise noted)
Volaris reported a strong second quarter with double-digit growth in revenue and EBITDAR, driven by a continued recovery of passenger demand in the Company´s markets.
Total operating revenue of Ps.11,501 million, a 38% increase. Total revenue per available seat mile (TRASM ) increased 22% to Ps.165 cents. Operating expenses of Ps.8,850 million, a 15% increase. Operating expenses per available seat mile (CASM ) decreased 3% to US$ 6.31 cents , while CASM ex-fuel increased 8% to US$ 4.22 cents . Net income of Ps.1,538 million with a net margin of 13.4% . Earnings per share of Ps.1.32 and earnings per ADS of US$ 0.67 . EBITDAR of Ps.4,696 million, increased 103% with an EBITDAR margin of 40.8% , an expansion of 13.1 percentage points. Cash generation of Ps.2,072 million with a cash and cash equivalents position of Ps.10,534 million or US$ 532 million , representing 44% of the last twelve months operating revenue. Net debt-to-EBITDAR ratio of 4.5 times, back to pre-pandemic levels."I am proud of what our team was able to achieve in the second quarter 2021, delivering considerable improvement in almost all operating and financial metrics. We were able to significantly increase capacity while improving TRASM and maintaining our cost control discipline. This efficient growth allowed us to more than double EBITDAR compared to the second quarter of 2019," said Enrique Beltranena , President & Chief Executive Officer. "We have demonstrated yet again that the Volaris business model is sound and can deliver superior results in various market conditions. Our team has taken the opportunities that presented themselves from the CoVID-19 pandemic and come out stronger in the market." Enrique added.
Second Quarter 2021 Financial and Operations Highlights (All metrics are compared to 2Q 2019 unless otherwise noted)
Second Quarter
Consolidated Financial Highlights
2021
2019
% Var.
Total Revenue (Ps. million)
11,501
8,329
38%
TRASM (Ps. cents)
165
136
22%
ASMs (million, scheduled & charter)
7,028
6,154
14%
Load Factor (scheduled, RPMs/ASMs)
86.6%
87.3%
(0.7) pp
Passengers (thousand, scheduled & charter)
6,202
5,654
10%
Fleet (end of period)
92
78
14
Operating Expenses (Ps. million)
8,850
7,670
15%
CASM (US$ cents)
6.31
6.53
(3% )
CASM excl. fuel (US$ cents)
4.22
3.89
8%
Operating income (EBIT) (Ps. million)
2,651
659
302%
% EBIT Margin
23.0%
7.9%
15.1 pp
Net income (Ps. million)
1,538
119
1,188%
% Net income margin
13.4%
1.4%
12.0 pp
EBITDAR (Ps. million)
4,696
2,310
103%
% EBITDAR Margin
40.8%
27.7%
13.1 pp
Net debt-to-EBITDAR
4.5x
4.4x
0.1x
Total operating revenue was Ps.11,501 million, a 38% increase, driven by higher capacity, healthy load factors and stronger unit revenue per passenger. Demand in the quarter was exceptionally strong both in the transborder and Mexican domestic market.
Volaris booked 6.2 million passengers in the quarter, an increase of 10% . Domestic and international passengers increased 9% and 11% , respectively; while total capacity, in terms of available seat miles (ASMs), increased 14% to 7.0 billion. Load factor reached 86.6% , back to pre-pandemic levels.
TRASM of Ps.165 cents, increased 22% . Average base fare was Ps.1,086, an increase of 13% . Ancillary revenue per passenger was Ps.785, a 53% increase, due to the continued growth of new and mature products, such as More Flexibility, Combo Business and Combo Health . Ancillary revenue represented 42% of total operating revenue, compared to 35% in the same period of 2019. Finally, total revenue per passenger increased 27% to Ps.1,870.
Operating expenses were Ps.8,850 million, a 15% increase, mainly impacted by maintenance and redelivery expenses. CASM ex-fuel increased 8% to US$ 4.22 cents . The average economic fuel cost per gallon declined 13% to Ps.42.6 per gallon (US$ 2.2) , which totaled a CASM decrease of 3% to US$ 6.31 cents .
Comprehensive financing result decreased 2% driven by a foreign exchange gain of Ps.164 million, despite an increase of 23% of financial cost mainly related to the increase in the Company's fleet. The Mexican peso depreciated 5% against the US dollar, from an average exchange rate of Ps.19.12 per US dollar in the second quarter of 2019 to Ps.20.05 per US dollar during the second quarter of 2021. At the end of the second quarter of 2021, the Mexican peso (Ps.19.80 per US dollar) appreciated 4% compared to the exchange rate at the end of the first quarter of 2021 (Ps.20.60 per US dollar).
Income tax expense was Ps.659 million, compared to Ps.78 million in the second quarter of 2019.
Net income was Ps.1,538 million with a net margin of 13.4% . Earnings per share totaled Ps.1.32 and earnings per ADS were US$ 0.67 .
EBITDAR was Ps.4,696 million, an increase of 103% due to capacity increase, higher unit revenues, and tight cost controls. EBITDAR margin was 40.8% , an increase of 13.1 percentage points.
Balance Sheet, Liquidity and Capital Allocation
During the second quarter 2021 Volaris generated cash flow of Ps.2,072 million. As of June 30 , cash and cash equivalents were Ps.10,534 million or US$ 532 million , representing 44% of the last twelve months operating revenue. The net cash flow generated by operating activities was Ps.5,807 million, while cash outflows in investing and financing activities were Ps.776 million and Ps.2,959 million, respectively. Negative net foreign exchange difference was Ps.255 million.
As of June 30, 2021 , the Company had only $18 million dollars outstanding of the working capital relief received on goods and services during 2020. By the end of the second quarter, the Company's suppliers and accrued liabilities were equal to 62 days of operating expenses.
As of the quarter end, net debt was Ps.39,849 million, which included Ps.5,332 million of financial debt, Ps.45,051 million of leasing liabilities, less cash and cash equivalents of Ps.10,534 million. The Company registered a negative adjusted net debt of Ps.5,202 million (excluding lease liability recognized under the IFRS16). The net debt-to-EBITDAR ratio was 4.5 times, in line with 2Q 2019.
Fleet
During the second quarter, the Company incorporated 5 new A320neo aircraft to its fleet. As of June 30, 2021 , Volaris' fleet was composed of 92 aircraft (6 A319s, 70 A320s and 16 A321s), with an average age of 5.4 years. Volaris' fleet had an average of 188 seats per aircraft. 80% of its aircraft are sharklet-equipped and 39% are New Engine Option (NEO) models.
The Company plans to incorporate 25 A320neo family aircraft to its fleet in the next 18 months, ending 2021 with 101 aircraft and closing the year 2022 with 113 aircraft. Volaris anticipates the percentage of A320neo family aircraft of its fleet to be 54% by year end 2022, aligned to the Company's sustainability strategy.
Investors are urged to carefully read the Company's periodic reports filed with or provided to the Securities and Exchange Commission, for additional information regarding the Company.
Investor Relations Contact: María Elena Rodríguez / Félix Martínez / ir@volaris.com
Media Contact: Gabriela Fernández / gabriela.fernandez@volaris.com / +52 55 3104 5264
Conference call and webcast details
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 and Central 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 180 and its fleet from 4 to 93 aircraft. Volaris offers more than 450 daily flight segments on routes that connect 43 cities in Mexico and 28 cities in the United States and Central America with the youngest fleet in Mexico . Volaris targets passengers who are visiting friends and relatives, cost-conscious business and leisure travelers in Mexico , the United States and Central America . Volaris has received the ESR Award for Social Corporate Responsibility for eleven consecutive years. For more information, please visit: www.volaris.com .
Forward-looking Statements:
Statements in this release contain various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which represent the Company's expectations, beliefs or projections concerning future events and financial trends affecting the financial condition of our business. When used in this release, the words "expects," "intends," "estimates," "predicts," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "potential," "outlook," "may," "continue," "will," "should," "seeks," "targets" and similar expressions are intended to identify forward-looking statements. Similarly, statements that describe the Company's objectives, plans or goals, or actions the Company may take in the future, are forward-looking statements. Forward-looking statements include, without limitation, statements regarding the Company's intentions and expectations regarding the delivery schedule of aircraft on order, announced new service routes and customer savings programs. Forward-looking statements should not be read as a guarantee or assurance of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Forward-looking statements are subject to several factors that could cause the Company's actual results to differ materially from the Company's expectations, including the competitive environment in the airline industry; the Company's ability to keep costs low; changes in fuel costs; the impact of worldwide economic conditions on customer travel behavior; the Company's ability to generate non-ticket revenue; and government regulation. Additional information concerning these, and other factors is contained in the Company's Securities and Exchange Commission filings. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date of this release. You should not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Financial and Operating Indicators (All metrics are compared to 2019 unless otherwise noted)
Unaudited
Three months
ended June 30, 2021
Three months ended June 30, 2021
Three months ended June 30, 2019
Variance
(Mexican pesos, except otherwise indicated)
(US Dollars)*
(%)
Total operating revenue (millions)
581
11,501
8,329
38.1%
Total operating expenses (millions)
447
8,850
7,670
15.4%
EBIT (millions)
134
2,651
659
302.0%
EBIT margin
23.0%
23.0%
7.9%
15.1 pp
Depreciation and amortization (millions)
79
1,563
1,335
17.1%
Aircraft and engine variable lease expenses (millions)
24
482
316
52.8%
Net income (millions)
78
1,538
119
1,187.9%
Net income margin
13.4%
13.4%
1.4%
12.0 pp
Earnings per share:
Basic (pesos)
0.07
1.32
0.12
1,017.7%
Diluted (pesos)
0.07
1.32
0.12
1,017.7%
Earnings per ADS:
Basic (pesos)
0.67
13.19
1.18
1,017.7%
Diluted (pesos)
0.67
13.19
1.18
1,017.7%
Weighted average shares outstanding:
Basic
-
1,165,976,677
1,011,876,677
15.2%
Diluted
-
1,165,976,677
1,011,876,677
15.2%
Available seat miles (ASMs) (millions) (1)
-
7,028
6,154
14.2%
Domestic
-
5,012
4,250
17.9%
International
-
2,016
1,904
5.9%
Revenue passenger miles (RPMs) (millions) (1)
-
6,082
5,370
13.3%
Domestic
-
4,424
3,812
16.1%
International
-
1,658
1,558
6.4%
Load factor (2)
-
86.6%
87.3%
(0.7) pp
Domestic
-
88.3%
89.7%
(1.4) pp
International
-
82.3%
81.9%
0.4 pp
Total operating revenue per ASM (TRASM) (cents) (1) (5)
8.3
165.0
135.5
21.8%
Total ancillary revenue per passenger (4) (5)
39.6
785
514
52.6%
Total operating revenue per passenger (5)
94.4
1,870
1,475
26.8%
Operating expenses per ASM (CASM) (cents) (1) (5)
6.4
126.4
124.9
1.3%
Operating expenses per ASM (CASM) (US cents) (1) (3) (5)
-
6.3
6.5
(3.2% )
CASM ex fuel (cents) (1) (5)
4.3
84.6
74.5
13.6%
CASM ex fuel (US cents) (1) (3) (5)
-
4.2
3.9
8.3%
Booked passengers (thousands) (1)
-
6,202
5,654
9.7%
Departures (1)
-
38,658
34,848
10.9%
Block hours (1)
-
96,721
87,686
10.3%
Fuel gallons consumed (millions)
-
69.1
63.4
9.0%
Average economic fuel cost per gallon (5)
2.2
42.6
48.9
(12.9% )
Aircraft at end of period
-
92
78
17.9%
Average aircraft utilization (block hours)
-
12.9
13.1
(1.1% )
Average exchange rate
-
20.05
19.12
4.8%
End of period exchange rate
-
19.80
19.17
3.3%
*Peso amounts were converted to US dollars at end of period exchange rate for convenience purposes only.
(1) Includes scheduled and chartered. (3) Dollar amounts were converted at average exchange rate of each period.
(2) Includes scheduled. (4) Includes "Other passenger revenue" and "Non-passenger revenue".
(5) Excludes non-derivatives financial instruments.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Financial and Operating Indicators (All metrics are compared to 2020 unless otherwise noted)
Unaudited
Three months
ended June 30, 2021
Three months ended June 30, 2021
Three months ended June 30, 2020
Variance
(Mexican pesos, except otherwise indicated)
(US Dollars)*
(%)
Total operating revenue (millions)
581
11,501
1,526
653.7%
Total operating expenses (millions)
447
8,850
3,820
131.7%
EBIT (millions)
134
2,651
(2,294)
NA
EBIT margin
23.0%
23.0%
(150.4% )
173.4 pp
Depreciation and amortization (millions)
79
1,563
1,451
7.8%
Aircraft and engine variable lease expenses (millions)
24
482
426
13.2%
Net income (loss) (millions)
78
1,538
(1,523)
NA
Net income (loss) margin
13.4%
13.4%
(99.8% )
113.2 pp
Earnings (loss) per share:
Basic (pesos)
0.07
1.32
(1.50)
NA
Diluted (pesos)
0.07
1.32
(1.50)
NA
Earnings (loss) per ADS:
Basic (pesos)
0.67
13.19
(15.05)
NA
Diluted (pesos)
0.67
13.19
(15.05)
NA
Weighted average shares outstanding:
Basic
-
1,165,976,677
1,011,876,677
15.2%
Diluted
-
1,165,976,677
1,011,876,677
15.2%
Available seat miles (ASMs) (millions) (1)
-
7,028
1,437
389.0%
Domestic
-
5,012
1,202
316.8%
International
-
2,016
235
758.7%
Revenue passenger miles (RPMs) (millions) (1)
-
6,082
1,138
434.2%
Domestic
-
4,424
936
372.7%
International
-
1,658
202
718.5%
Load factor (2)
-
86.6%
79.2%
7.3 pp
Domestic
-
88.3%
77.8%
10.4 pp
International
-
82.3%
86.3%
(4.0) pp
Total operating revenue per ASM (TRASM) (cents) (1) (5)
8.3
165.0
108.9
51.6%
Total ancillary revenue per passenger (4) (5)
39.6
785
644
22.0%
Total operating revenue per passenger (5)
94.4
1,870
1,417
32.0%
Operating expenses per ASM (CASM) (cents) (1) (5)
6.4
126.4
274.4
(53.9% )
Operating expenses per ASM (CASM) (US cents) (1) (3) (5)
-
6.3
11.7
(46.3% )
CASM ex fuel (cents) (1) (5)
4.3
84.6
234.3
(63.9% )
CASM ex fuel (US cents) (1) (3) (5)
-
4.2
10.0
(57.9% )
Booked passengers (thousands) (1)
-
6,202
1,105
461.4%
Departures (1)
-
38,658
7,785
396.6%
Block hours (1)
-
96,721
19,472
396.7%
Fuel gallons consumed (millions)
-
69.1
13.1
425.9%
Average economic fuel cost per gallon (5)
2.2
42.6
43.8
(2.8% )
Aircraft at end of period
-
92
82
12.2%
Average aircraft utilization (block hours)
-
12.9
7.7
68.0%
Average exchange rate
-
20.05
23.37
(14.2% )
End of period exchange rate
-
19.80
22.97
(13.8% )
*Peso amounts were converted to US dollars at end of period exchange rate for convenience purposes only.
(1) Includes scheduled and chartered. (3) Dollar amounts were converted at average exchange rate of each period.
(2) Includes scheduled. (4) Includes "Other passenger revenue" and "Non-passenger revenue".
(5) Excludes non-derivatives financial instruments.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Financial and Operating Indicators (All metrics are compared to 2020 unless otherwise noted)
Unaudited
Six months
ended June 30, 2021
Six months ended June 30, 2021
Six months ended June 30, 2020
Variance
(Mexican pesos, except otherwise indicated)
(US Dollars)*
(%)
Total operating revenues (millions)
904
17,904
9,350
91.5%
Total operating expenses (millions)
808
15,992
11,337
41.1%
EBIT (millions)
97
1,912
(1,986)
NA
EBIT margin
10.7%
10.7%
(21.2% )
31.9 pp
Depreciation and amortization (millions)
157
3,118
2,893
7.8%
Aircraft and engine rent expenses (millions)
48
950
801
18.6%
Net income (loss) (millions)
41
805
(3,016)
NA
Net income (loss) margin
4.5%
4.5%
(32.3% )
36.7 pp
Earnings (loss) per share:
Basic (pesos)
0.03
0.69
(2.98)
NA
Diluted (pesos)
0.03
0.69
(2.98)
NA
Earnings (loss) per ADS:
Basic (pesos)
0.35
6.90
(29.80)
NA
Diluted (pesos)
0.35
6.90
(29.80)
NA
Weighted average shares outstanding:
Basic
-
1,165,976,677
1,011,876,677
15.2%
Diluted
-
1,165,976,677
1,011,876,677
15.2%
Available seat miles (ASMs) (millions) (1)
-
12,407
7,533
64.7%
Domestic
-
9,050
5,455
65.9%
International
-
3,357
2,078
61.5%
Revenue passenger miles (RPMs) (millions) (1)
-
10,284
6,304
63.1%
Domestic
-
7,680
4,596
67.1%
International
-
2,604
1,708
52.5%
Load factor (2)
-
82.9%
83.7%
(0.8) pp
Domestic
-
84.9%
84.2%
0.6 pp
International
-
77.5%
82.2%
(4.7) pp
Total operating revenue per ASM (TRASM) (cents) (1)(5)
7.4
146.0
125.0
16.8%
Total ancillary revenue per passenger (4)(5)
39.3
778
578
34.6%
Total operating revenue per passenger (5)
87.3
1,730
1,475
17.2%
Operating expenses per ASM (CASM) (cents) (1)(5)
6.5
129.7
152.8
(15.1% )
Operating expenses per ASM (CASM) (US cents) (1)(3)(5)
-
6.4
7.1
(9.1% )
CASM ex fuel (cents) (1)(5)
4.5
90.0
111.1
(19.0% )
CASM ex fuel (US cents) (1)(3)(5)
-
4.5
5.1
(13.3% )
Booked passengers (thousands) (1)
-
10,474
6,382
64.1%
Departures (1)
-
67,620
41,446
63.2%
Block hours (1)
-
169,893
106,110
60.1%
Fuel gallons consumed (millions)
-
119.9
75.0
59.8%
Average economic fuel cost per gallon (5)
2.1
41.1
41.8
(1.6% )
Aircraft at end of period
-
92
82
12.2%
Average aircraft utilization (block hours)
-
11.8
11.4
3.5%
Average exchange rate
-
20.18
21.62
(6.7% )
End of period exchange rate
-
19.80
22.97
(13.8% )
*Peso amounts were converted to US dollars at end of period exchange rate for convenience purposes only.
(1) Includes scheduled and chartered. (3) Dollar amounts were converted at average exchange rate of each period.
(2) Includes scheduled. (4) Includes "Other passenger revenue" and "Non-passenger revenue".
(5) Excludes non-derivatives financial instruments.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Operations (All metrics are compared to 2020 unless otherwise noted)
Unaudited
Three months ended June 30, 2021
Three months
ended
June 30,
2021
Three months
ended
June 30,
2020
Variance
(In millions of Mexican pesos)
(US Dollars) *
(%)
Operating revenue:
Passenger revenue
563
11,145
1,436
676.1%
Fare revenue
340
6,729
854
688.2%
Other passenger revenue
223
4,416
582
658.4%
Non-passenger revenue
23
453
129
251.5%
Other non-passenger revenue
20
394
102
284.9%
Cargo
3
59
27
122.9%
Non-derivatives financial instruments
(5)
(98)
(39)
149.7%
Total operating revenue
581
11,501
1,526
653.7%
Other operating income
(3)
(50)
(180)
(72.2% )
Fuel expense, net (1)
147
2,907
452
542.8%
Depreciation of right of use assets
67
1,318
1,240
6.2%
Landing, take-off, and navigation expenses
77
1,528
438
249.1%
Sales, marketing, and distribution expenses
24
481
179
168.2%
Salaries and benefits
59
1,162
665
74.7%
Aircraft and engine variable lease expenses
24
482
426
13.2%
Maintenance expenses
25
485
166
193.0%
Other operating expenses
15
292
224
30.3%
Depreciation and amortization
12
245
210
16.7%
Operating expenses
447
8,850
3,820
131.7%
Operating income (loss)
134
2,651
(2,294)
NA
Finance income
1
21
27
(22.9% )
Finance cost
(32)
(639)
(1,137)
(43.9% )
Exchange gain, net
8
164
1,229
(86.7% )
Comprehensive financing result
(23)
(454)
119
NA
Income (loss) before income tax
111
2,197
(2,175)
NA
Income tax (expense) benefit
(33)
(659)
653
NA
Net income (loss)
78
1,538
(1,523)
NA
* Peso amounts were converted to US dollars at end of period exchange rate for convenience purposes only.
(1) 2Q 2021 and 2Q 2020 figures include a benefit from non-derivatives financial instruments by an amount of Ps.34.7 million and Ps.123.2 million, respectively.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Operations (All metrics are compared to 2020 unless otherwise noted)
Unaudited
Six months ended June 30, 2021
Six months
ended
June 30,
2021
Six months
ended
June 30,
2020
Variance
(In millions of Mexican pesos)
(US Dollars) *
(%)
Operating revenues:
Passenger revenues
872
17,275
8,984
92.3%
Fare revenues
503
9,966
5,727
74.0%
Other passenger revenues
369
7,309
3,257
124.4%
Non-passenger revenues
42
839
433
94.0%
Other non-passenger revenues
37
725
350
107.3%
Cargo
6
115
83
38.0%
Non-derivatives financial instruments
(11)
(210)
(66)
217%
Total operating revenues
904
17,904
9,350
91.5%
Other operating income
(5)
(109)
(301)
(63.9% )
Depreciation of right of use assets
132
2,620
2,474
5.9%
Salaries and benefits
108
2,134
1,605
33.0%
Fuel expense, net (1)
244
4,829
2,965
62.8%
Landing, take-off, and navigation expenses
138
2,739
1,915
43.0%
Aircraft and engine variable lease expenses
48
950
801
18.6%
Sales, marketing, and distribution expenses
42
836
542
54.2%
Maintenance expenses
46
908
399
127.4%
Other operating expenses
30
586
517
13.3%
Depreciation and amortization
25
499
419
19.0%
Operating expenses
808
15,992
11,337
41.1%
Operating income (loss)
97
1,912
(1,986)
NA
Finance income
2
33
76
(57.0% )
Finance cost
(61)
(1,206)
(1,794)
(32.8% )
Exchange gain (loss), net
21
411
(605)
NA
Comprehensive financing result
(38)
(762)
(2,322)
(67.2% )
Income (loss) before income tax
58
1,150
(4,308)
NA
Income tax (expense) benefit
(17)
(345)
1,292
NA
Net income (loss)
41
805
(3,016)
NA
* Peso amounts were converted to US dollars at end of period exchange rate for convenience purposes only.
(1) June YTD 2021 and June YTD 2020 figures include a benefit from non-derivatives financial instruments by an amount of Ps.100.5 million and Ps.171.4 million, respectively.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Reconciliation of total ancillary revenue per passenger (All metrics are compared to 2020 unless otherwise noted)
The following table shows quarterly additional detail about the components of total ancillary revenue:
Unaudited
Three months ended June 30, 2021
(US Dollars)*
Three months ended June 30, 2021
Three months ended June 30, 2020
Variance
(%)
(In millions of Mexican pesos)
Other passenger revenue
223
4,416
582
658.4%
Non-passenger revenue
23
453
129
251.5%
Total ancillary revenue
246
4,869
711
584.6%
Booked passengers (thousands)
-
6,202
1,105
461.4%
Total ancillary revenue per passenger
40
785
644
22.0%
* Peso amounts were converted to US dollars at end of period exchange rate for convenience purposes only.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Reconciliation of total ancillary revenue per passenger (All metrics are compared to 2020 unless otherwise noted)
The following table shows the first one half of the year additional detail about the components of total ancillary revenue:
Unaudited
Six months ended June 30, 2021
(US Dollars)*
Six months ended June 30, 2021
Six months ended June 30, 2020
Variance
(%)
(In millions of Mexican pesos)
Other passenger revenues
369
7,309
3,257
124.4%
Non-passenger revenues
42
839
433
94.0%
Total ancillary revenues
411
8,148
3,689
120.9%
Booked passengers (thousands)
-
10,474
6,382
64.1%
Total ancillary revenue per passenger
39
778
578
34.6%
* Peso amounts were converted to US dollars at end of period exchange rate for convenience purposes only.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Financial Position (All metrics are compared to 2020 unless otherwise noted)
(In millions of Mexican pesos)
June 30, 2021 Unaudited
June 30, 2021 Unaudited
December 31, 2020 Audited
(US Dollars)*
Assets
Cash and cash equivalents
532
10,534
10,103
Accounts receivable, net
144
2,861
2,027
Inventories
13
264
279
Prepaid expenses and other current assets
61
1,212
850
Financial instruments
-
-
-
Guarantee deposits
79
1,567
1,142
Total current assets
830
16,438
14,402
Rotable spare parts, furniture and equipment, net
400
7,921
7,281
Right of use assets
1,857
36,782
34,316
Intangible assets, net
9
169
192
Financial instruments
-
2
-
Deferred income taxes
140
2,775
3,129
Guarantee deposits
470
9,308
8,425
Other assets
4
80
119
Other long- term assets
16
319
325
Total non-current assets
2,896
57,357
53,787
Total assets
3,727
73,795
68,189
Liabilities
Unearned transportation revenue
413
8,180
5,851
Accounts payable
70
1,382
2,365
Accrued liabilities
175
3,462
2,356
Lease liabilities
266
5,276
6,484
Other taxes and fees payable
160
3,161
2,236
Income taxes payable
-
2
4
Financial instruments
-
-
10
Financial debt
168
3,322
1,559
Other liabilities
9
183
101
Total short-term liabilities
1,261
24,967
20,966
Financial debt
102
2,010
3,796
Accrued liabilities
14
269
67
Lease liabilities
2,009
39,775
37,646
Other liabilities
148
2,921
2,668
Employee benefits
3
56
51
Deferred income taxes
10
199
200
Total long-term liabilities
2,284
45,231
44,427
Total liabilities
3,545
70,198
65,393
Equity
Capital stock
173
3,426
3,426
Treasury shares
(10)
(204)
(224)
Contributions for future capital increases
-
-
-
Legal reserve
15
291
291
Additional paid-in capital
237
4,691
4,720
Retained losses
(154)
(3,050)
(3,855)
Accumulated other comprehensive losses (1)
(79)
(1,558)
(1,562)
Total equity
182
3,597
2,796
Total liabilities and equity
3,727
73,795
68,189
Total shares outstanding fully diluted
1,165,976,677
1,165,976,677
* Peso amounts were converted to US dollars at end of period exchange rate for convenience purposes only.
(1) As of June 30, 2021, and December 31, 2020, the figures include a negative foreign exchange effect of Ps.1,594 million and negative
foreign exchange effect of Ps.1,577 million, respectively, related to non-derivative financial instruments.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Cash Flows – Cash Flow Data Summary (All metrics are compared to 2020 unless otherwise noted)
Unaudited
Three months
ended June 30, 2021
Three months
ended June 30, 2021
Three months ended June 30, 2020
(In millions of Mexican pesos)
(US Dollars)*
Net cash flow generated by operating activities
293
5,807
584
Net cash flow (used in) provided by investing activities
(39)
(776)
71
Net cash flow used in financing activities**
(149)
(2,959)
(1,179)
Increase (decrease) in cash and cash equivalents
105
2,072
(524)
Net foreign exchange differences
(13)
(255)
(120)
Cash and cash equivalents at beginning of period
440
8,718
10,658
Cash and cash equivalents at end of period
532
10,534
10,013
* Peso amounts were converted to US dollars at end of period exchange rate for convenience purposes only.
**Includes aircraft rental payments of Ps.2,901 million and Ps.806 million for the three months ended period June 30, 2021 , and 2020, respectively.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Consolidated Statement of Cash Flows – Cash Flow Data Summary (All metrics are compared to 2020 unless otherwise noted)
Unaudited
Six months
ended June 30, 2021
Six months
ended June 30, 2021
Six months ended June 30, 2020
(In millions of Mexican pesos)
(US Dollars)*
Net cash flow generated by operating activities
331
6,559
3,403
Net cash flow (used in) provided by investing activities
(49)
(966)
34
Net cash flow used in financing activities**
(260)
(5,141)
(3,048)
Increase in cash and cash equivalents
23
452
389
Net foreign exchange differences
(1)
(21)
1,645
Cash and cash equivalents at beginning of period
510
10,103
7,980
Cash and cash equivalents at end of period
532
10,534
10,013
* Peso amounts were converted to US dollars at end of period exchange rate for convenience purposes only.
**Includes aircraft rental payments of Ps.5,037 million and Ps.2,626 million for the six months ended period June 30, 2021, and 2020, respectively.
[1] The financial information, unless otherwise indicated, is presented in accordance with the International Financial Reporting Standards (IFRS).
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SOURCE Volaris