Volaris Reports January 2025 Traffic Results: Load Factor of 87%

Rhea-AI Summary

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%.

Positive

• Total passenger traffic increased 4.3% YoY to 2.6 million passengers
• International RPMs grew 5.9% YoY
• Planned ASM growth of 13-15% for 2025 compared to 2024

Negative

• Load factor decreased 1.5 percentage points YoY to 86.6%
• Domestic RPMs showed weak growth of only 0.9% YoY
• Softness in U.S. VFR traffic requiring fare adjustments
• Continued impact from Pratt & Whitney engine-related AOGs affecting capacity

Insights

Aviation Industry Analyst

The January 2025 traffic results reveal important strategic shifts and challenges for Volaris. The 86.6% load factor, while still healthy for the industry, represents a concerning trend as capacity growth (4.7%) outpaces demand (2.9%). This mismatch typically pressures yields and unit revenues, particularly when combined with the disclosed fare adjustments to stimulate demand.

The divergence between international and domestic performance is particularly noteworthy. International RPM growth of 5.9% versus domestic at 0.9% reflects a strategic pivot, with management planning to maintain domestic capacity 11% below 2023 levels while expanding international capacity by 20%. This reallocation appears prudent given stronger international demand, though it may increase exposure to currency and competitive risks.

The planned 13-15% ASM growth for 2025 warrants scrutiny. While ambitious, this expansion faces three key challenges:

• Ongoing Pratt & Whitney engine-related AOGs constraining fleet availability
• Softening VFR traffic in key U.S. markets
• The need to maintain yield discipline in a capacity-heavy environment

The management's acknowledgment of temporary market softness and willingness to adjust network capacity demonstrates operational flexibility, but investors should monitor whether these adjustments can effectively protect unit revenues without sacrificing market share in key routes.

MEXICO CITY, Feb. 06, 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 January 2025 preliminary traffic results.

In January, Volaris’ ASM capacity increased by 4.7% year-over-year, while RPMs for the month grew by 2.9%. Mexican domestic RPMs rose 0.9%, while international RPMs increased by 5.9%. As a result, the load factor decreased by 1.5 percentage points year-over-year to 86.6%. During the month, Volaris transported 2.6 million passengers.

Enrique Beltranena, Volaris’ President and CEO, said: “In the second half of January, we observed some softness in VFR traffic to the U.S. that we believe is influenced by geopolitical uncertainty. To manage this, we adjusted base fares to stimulate demand and deliver healthy load factors. It is our expectation this is a temporary market condition, but we will continue to monitor demand patterns closely and will adjust the network accordingly.

For the full year 2025, Volaris currently plans to grow total ASMs by 13% to 15% as compared to 2024, with this expansion evenly distributed across the network. Despite this year-over-year growth, our overall capacity will be relatively flat as compared to 2023 as we recover from the Pratt & Whitney engine-related AOGs; with domestic capacity in Mexico around 11% below 2023 levels, proportional to expected demand, and international capacity, where demand has been strong, up approximately 20% as compared to 2023.”  

	January 2025		January 2024		Variance
RPMs (million, scheduled & charter)
Domestic	1,558		1,544		0.9%
International	1,107		1,045		5.9%
Total	2,665		2,590		2.9%
ASMs (million, scheduled & charter)
Domestic	1,775		1,722		3.0%
International	1,304		1,219		6.9%
Total	3,078		2,941		4.7%
Load Factor (%, RPMs/ASMs)
Domestic	87.8%		89.7%		(1.9) pp
International	84.9%		85.7%		(0.9) pp
Total	86.6%		88.0%		(1.5) pp
Passengers (thousand, scheduled & charter)
Domestic	1,833		1,772		3.5%
International	764		719		6.2%
Total	2,597		2,491		4.3%

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 222 and its fleet from 4 to 145 aircraft. Volaris offers more than 450 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 January 2025?

Volaris reported a load factor of 86.6% in January 2025, which was a decrease of 1.5 percentage points compared to January 2024.

How many passengers did Volaris (VLRS) transport in January 2025?

Volaris transported 2.6 million passengers in January 2025, representing a 4.3% increase from January 2024.

What is Volaris' (VLRS) capacity growth target for 2025?

Volaris plans to grow total ASMs by 13% to 15% in 2025 compared to 2024, with expansion evenly distributed across the network.

How did Volaris' (VLRS) international traffic perform in January 2025?

Volaris' international RPMs increased by 5.9% year-over-year in January 2025, with international passenger traffic growing by 6.2%.

What impact are the Pratt & Whitney engine issues having on Volaris (VLRS) capacity?

Due to Pratt & Whitney engine-related AOGs, Volaris' overall capacity will remain flat compared to 2023, with domestic capacity in Mexico about 11% below 2023 levels.