Volaris Reports October 2024 Traffic Results: Strong Demand Across Our Markets, Load Factor of 87%

Rhea-AI Summary

Volaris reported its October 2024 traffic results, showing mixed performance. The airline's ASM capacity decreased by 6.8% year-over-year due to Pratt & Whitney engine inspections. The company transported 2.5 million passengers with a load factor of 87.4%, down 2.1 percentage points from last year. Total RPMs declined by 9.0%, with domestic RPMs falling 14.4% while international RPMs grew 1.5%. The CEO highlighted strong demand across markets and robust booking trends through the holiday season, focusing on sustained profitability through prudent capacity recovery and aggressive cost management.

Positive

• International RPMs increased by 1.5% year-over-year
• International passenger traffic grew 1.3%
• Strong booking trends reported for holiday season
• High load factor maintained at 87.4% despite capacity adjustments

Negative

• Total ASM capacity decreased 6.8% year-over-year
• Overall RPMs declined 9.0%
• Domestic RPMs dropped 14.4%
• Total passenger traffic decreased 6.7%
• Load factor decreased 2.1 percentage points from previous year

Insights

Aviation Industry Analyst

The October traffic results reveal important operational dynamics at Volaris. The 6.8% year-over-year capacity decrease, primarily due to Pratt & Whitney engine inspections, shows better fleet management compared to previous months. The 87.4% load factor, though 2.1% lower than last year, remains robust and indicates strong market demand.

Key metrics show divergent trends between domestic and international markets. While domestic RPMs declined by 14.4%, international RPMs grew by 1.5%, suggesting successful market diversification. The total passenger count of 2.5 million and positive booking trends for the holiday season indicate resilient consumer demand despite operational challenges.

The gradual capacity recovery strategy, coupled with aggressive cost management, positions Volaris well for sustained profitability. The improving operational metrics and strong forward bookings suggest the airline is effectively managing the engine inspection impact while maintaining market share.

MEXICO CITY, Nov. 07, 2024 (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 October 2024 preliminary traffic results.

In October, Volaris' ASM capacity decreased by 6.8% year-over-year due to the Pratt & Whitney engine inspections offset by fewer aircraft groundings following the return of the initial batch of inspected engines. Volaris transported 2.5 million passengers during the month with a load factor of 87.4%, a 2.1 pp decrease from last year. RPMs for the month declined by 9.0%, with Mexican domestic RPMs down 14.4% and international RPMs up 1.5%. When comparing year-over-year RPMs and load factor results it is useful to note that our 2023 figures were impacted by the accelerating engine inspections. Last year, we had to reduce operations as engines temporarily left our fleet; today, we are gradually adding capacity as engines and aircraft return.    

Enrique Beltranena, Volaris’ President and CEO, said: “In line with the main message from our earnings call – sustained profitability driven by prudent capacity recovery and aggressive cost management – October figures are tracking well, showing strong demand across our markets, with consistently high load factors. Looking ahead, booking trends remain robust through the holiday high season, in line with our guidance.”

	October 2024		October 2023		Variance			YTD October 2024		YTD October 2023		Variance
RPMs (million, scheduled & charter)
Domestic	1,549		1,811		-14.4%			14,949		18,876		-20.8%
International	959		945		1.5%			9,269		9,041		2.5%
Total	2,509		2,756		-9.0%			24,217		27,917		-13.3%
ASMs (million, scheduled & charter)
Domestic	1,685		1,940		-13.1%			16,522		21,738		-24.0%
International	1,185		1,140		3.9%			11,408		10,831		5.3%
Total	2,870		3,080		-6.8%			27,930		32,568		-14.2%
Load Factor (%, RPMs/ASMs)
Domestic	92.0%		93.4%		(1.4) pp			90.5%		86.8%		3.6 pp
International	80.9%		82.9%		(1.9) pp			81.2%		83.5%		(2.2) pp
Total	87.4%		89.5%		(2.1) pp			86.7%		85.7%		1.0 pp
Passengers (thousand, scheduled & charter)
Domestic	1,880		2,071		-9.2%			17,839		21,754		-18.0%
International	657		649		1.3%			6,322		6,215		1.7%
Total	2,537		2,720		-6.7%			24,162		27,970		-13.6%

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 219 and its fleet from 4 to 139 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 October 2024?

Volaris reported a load factor of 87.4% in October 2024, which was a 2.1 percentage point decrease from October 2023.

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

Volaris transported 2.5 million passengers in October 2024, representing a 6.7% decrease from October 2023.

What caused the capacity decrease for Volaris (VLRS) in October 2024?

Volaris' capacity decreased by 6.8% year-over-year due to Pratt & Whitney engine inspections, partially offset by fewer aircraft groundings following the return of initially inspected engines.

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

Volaris' international RPMs increased by 1.5% year-over-year, and international passenger traffic grew by 1.3% in October 2024.