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

Rhea-AI Summary

Volaris (VLRS) reported its May 2025 traffic results, showing mixed performance metrics. The airline's capacity (ASMs) increased by 9.0% year-over-year, while revenue passenger miles (RPMs) grew by 3.5%. Domestic RPMs rose by 5.7%, but international RPMs remained flat with a -0.2% change. The overall load factor decreased by 4.3 percentage points to 81.8%. The company transported 2.5 million passengers during May, representing a 4.2% increase from the previous year. CEO Enrique Beltranena noted that the capacity growth aligns with previously announced adjustments, with the commercial team focusing on maximizing unit revenue by prioritizing close-in fares over load factors. Management expressed optimism about booking trends for the upcoming summer season.

Positive

• Total passenger traffic increased 4.2% year-over-year to 2.5 million passengers
• Domestic RPMs showed healthy growth of 5.7%
• Overall capacity (ASMs) expanded by 9.0%, indicating network growth
• Management reports encouraging booking trends for the summer high season

Negative

• Load factor declined by 4.3 percentage points to 81.8%
• International RPMs showed negative growth at -0.2%
• Capacity growth (9.0%) significantly outpaced RPM growth (3.5%), indicating lower efficiency
• Both domestic and international load factors decreased significantly (3.8 and 5.2 percentage points respectively)

Insights

Aviation Industry Analyst

Volaris reported mixed May traffic with increased capacity but declining load factors as the airline prioritizes revenue over filling seats.

Volaris' May 2025 traffic results reveal an interesting strategic shift in the ultra-low-cost carrier's approach to revenue management. The company increased its overall capacity (ASMs) by 9.0% year-over-year, outpacing its 3.5% growth in revenue passenger miles (RPMs). This mismatch resulted in a 4.3 percentage point decline in load factor to 81.8%.

The most telling aspect of these results is the deliberate strategy articulated by CEO Enrique Beltranena, who explained that the company is prioritizing unit revenue performance over load factors by focusing on higher-yield close-in bookings (tickets purchased shortly before travel). This represents a tactical shift from the traditional ULCC model of maximizing seat occupancy at all costs.

Breaking down the performance: domestic Mexican traffic showed relative strength with 5.7% RPM growth, while international traffic remained essentially flat at -0.2%. The carrier transported 2.5 million passengers, a 4.2% increase from the previous year.

The divergence between domestic and international performance is significant. Domestic load factor declined 3.8 percentage points to 86.5%, while international routes saw a steeper 5.2 percentage point drop to 74.7%. The sub-75% load factor on international routes merits attention, as this is below industry averages and suggests potential challenges in international markets despite management's revenue-focused strategy.

Management's commentary indicating "encouraging booking trends" heading into the summer high season provides some reassurance that the company's strategy of sacrificing load factor for higher yields may be working as intended. However, investors should monitor whether this approach translates to improved financial results in the upcoming quarter.

MEXICO CITY, June 04, 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 May 2025 preliminary traffic results.

In May, Volaris��� ASM capacity increased by 9.0% year-over-year, while RPMs for the month grew by 3.5%. Mexican domestic RPMs increased 5.7%, while international RPMs were effectively flat. As a result, the load factor decreased by 4.3 percentage points year-over-year to 81.8%. During the month, Volaris transported 2.5 million passengers.

Enrique Beltranena, Volaris’ President and CEO, said: “May’s capacity growth aligns with the adjustments outlined during our earnings call, allowing us to better match customer demand. Tactically, our commercial team has focused its efforts to maximize unit revenue performance by prioritizing close-in fares over load factors. As we move through the second quarter, we remain aligned with our guidance for the quarter and are seeing encouraging booking trends heading into the summer high season."

	May 2025	May 2024	Variance	YTD May 2025	YTD May 2024	Variance
RPMs (million, scheduled & charter)
Domestic	1,553	1,469	5.7%	7,685	7,211	6.6%
International	889	890	-0.2%	4,747	4,538	4.6%
Total	2,442	2,360	3.5%	12,432	11,749	5.8%
ASMs (million, scheduled & charter)
Domestic	1,795	1,626	10.4%	8,739	7,962	9.8%
International	1,190	1,114	6.8%	6,079	5,642	7.7%
Total	2,985	2,739	9.0%	14,818	13,604	8.9%
Load Factor (%, RPMs/ASMs)
Domestic	86.5%	90.4%	(3.8) pp	87.9%	90.6%	(2.6) pp
International	74.7%	79.9%	(5.2) pp	78.1%	80.4%	(2.3) pp
Total	81.8%	86.1%	(4.3) pp	83.9%	86.4%	(2.5) pp
Passengers (thousand, scheduled & charter)
Domestic	1,894	1,797	5.4%	9,269	8,498	9.1%
International	608	603	0.8%	3,267	3,104	5.2%
Total	2,502	2,400	4.2%	12,536	11,602	8.0%

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 147 aircraft. Volaris offers around 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 May 2025?

Volaris reported a load factor of 81.8% in May 2025, which was 4.3 percentage points lower than May 2024.

How many passengers did Volaris transport in May 2025?

Volaris transported 2.5 million passengers in May 2025, representing a 4.2% increase from May 2024.

What was the capacity growth for Volaris in May 2025?

Volaris increased its capacity (ASMs) by 9.0% year-over-year in May 2025.

How did Volaris' international traffic perform in May 2025?

Volaris' international RPMs remained nearly flat with a -0.2% decrease, while international load factor decreased by 5.2 percentage points to 74.7%.

What is Volaris' strategy for revenue management according to the May 2025 report?

Volaris is focusing on maximizing unit revenue by prioritizing close-in fares over load factors, as stated by management in the traffic report.