Volaris Reports March 2025 Traffic Results: Load Factor of 84%

Rhea-AI Summary

Volaris (VLRS) has released its March 2025 traffic results, showing mixed performance across key metrics. The ultra-low-cost carrier's total capacity (ASMs) increased by 10.9% year-over-year, while revenue passenger miles (RPMs) grew by 7.8%. The airline transported 2.6 million passengers, representing a 12.3% increase from March 2024.

The company's domestic RPMs rose by 9.9%, with international RPMs showing a more modest 4.6% growth. However, the overall load factor decreased by 2.4 percentage points to 84.4%. The domestic load factor stood at 89.4%, while international routes achieved 77.2%.

CEO Enrique Beltranena noted that domestic load factors remain stable, reflecting effective capacity management. He attributed part of the reduced load factors to the Easter holiday shift into April and mentioned that VFR (Visiting Friends and Relatives) segments maintained steady levels across both markets.

Positive

• Passenger traffic increased 12.3% YoY to 2.6 million passengers
• Total capacity (ASMs) grew 10.9% YoY
• Domestic RPMs showed strong growth of 9.9% YoY
• Maintained high domestic load factor of 89.4%

Negative

• Overall load factor decreased 2.4 percentage points to 84.4%
• International load factor declined to 77.2%, down 2.2 percentage points
• International RPMs showed growth of 4.6%
• elasticity in international cross-border demand

Insights

Aviation Industry Analyst

Volaris' March 2025 traffic results reveal mixed signals for the ultra-low-cost carrier. While the airline increased capacity by 10.9% year-over-year and grew passenger numbers by 12.3%, its load factor declined by 2.4 percentage points to 84.4%.

This divergence between capacity growth and load factor is concerning. When an airline adds capacity faster than passenger demand (as measured by RPMs, which grew only 7.8%), it typically indicates potential yield pressure. The carrier is essentially flying more seats with proportionally fewer passengers, which can compress margins if not managed carefully.

The domestic market shows stronger resilience with RPMs up 9.9%, while international markets grew more modestly at 4.6%. CEO Beltranena's acknowledgment that "international cross-border demand continues to show elasticity" suggests pricing challenges in these markets.

The Easter holiday shift to April partially explains the results, but doesn't eliminate concerns about the structural mismatch between capacity growth and demand. Volaris' statement about "effective approach to capacity management and fare modulation" will be tested in coming months as the company attempts to balance growth ambitions against yield preservation.

MEXICO CITY, April 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 March 2025 preliminary traffic results.

In March, Volaris’ ASM capacity increased by 10.9% year-over-year, while RPMs for the month grew by 7.8%. Mexican domestic RPMs increased 9.9%, while international RPMs increased 4.6%. As a result, the load factor decreased by 2.4 percentage points year-over-year to 84.4%. During the month, Volaris transported 2.6 million passengers.

Enrique Beltranena, Volaris’ President and CEO, said: "March domestic load factor remains stable, indicating our effective approach to capacity management and fare modulation. Meanwhile, international cross-border demand continues to show limited elasticity. Across both domestic and international markets, VFR segments have maintained steady levels. Additionally, the shift of the Easter holiday into April this year contributed to some of the reduced load factors observed. We will continue to monitor forward booking patterns and adjust capacity to match demand accordingly."

	Mar 2025		Mar 2024		Variance			YTD Mar 2025		YTD Mar 2024		Variance
RPMs (million, scheduled & charter)
Domestic	1,596		1,452		9.9	%		4,536		4,329		4.8	%
International	964		922		4.6	%		2,926		2,817		3.9	%
Total	2,560		2,374		7.8	%		7,462		7,146		4.4	%
ASMs (million, scheduled & charter)
Domestic	1,786		1,576		13.3	%		5,108		4,768		7.1	%
International	1,248		1,160		7.6	%		3,629		3,449		5.2	%
Total	3,034		2,736		10.9	%		8,737		8,217		6.3	%
Load Factor (%, RPMs/ASMs)
Domestic	89.4	%	92.1	%	(2.8) pp			88.8	%	90.8	%	(2.0) pp
International	77.2	%	79.5	%	(2.2) pp			80.6	%	81.7	%	(1.0) pp
Total	84.4	%	86.8	%	(2.4) pp			85.4	%	87.0	%	(1.6) pp
Passengers (thousand, scheduled & charter)
Domestic	1,932		1,674		15.3	%		5,408		4,985		8.5	%
International	663		636		4.2	%		2,010		1,939		3.7	%
Total	2,595		2,310		12.3	%		7,418		6,924		7.1	%
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 146 aircraft. Volaris offers more than 550 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) passenger growth in March 2025?

Volaris transported 2.6 million passengers in March 2025, representing a 12.3% increase compared to March 2024.

How did Volaris' load factor perform in March 2025?

The overall load factor decreased by 2.4 percentage points year-over-year to 84.4%, with domestic at 89.4% and international at 77.2%.

What was the capacity growth for Volaris in March 2025?

Volaris increased its ASM capacity by 10.9% year-over-year in March 2025.

How did Volaris' domestic vs international RPMs compare in March 2025?

Domestic RPMs increased by 9.9%, while international RPMs grew by 4.6% compared to March 2024.

What impact did the Easter holiday timing have on Volaris' March 2025 results?

The shift of Easter holiday into April 2025 contributed to reduced load factors in March 2025.