Volaris Reports Financial Results for the Fourth Quarter 2024: Net Income of $46 million
MEXICO CITY, Feb. 24, 2025 (GLOBE NEWSWIRE) -- Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS, BMV:VOLAR) ("Volaris" or "the Company"), the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central and South America, today reports its unaudited financial results for the fourth quarter and full year of 20241.
Fourth Quarter 2024 Highlights
(All figures are reported in U.S. dollars and compared to 4Q 2023 unless otherwise noted)
- Net income of $46 million. Earnings per American Depositary Shares (ADS) of $40 cents.
- Total operating revenues of $835 million, a 7% decrease.
- Total revenue per available seat mile (TRASM) decreased 2% to $9.35 cents.
- Available seat miles (ASMs) decreased by 5% to 8.9 billion.
- Total operating expenses of $718 million, representing 86% of total operating revenue.
- Total operating expenses per available seat mile (CASM) increased 3% at $8.04 cents.
- Average economic fuel cost decreased 20% to $2.51 per gallon.
- CASM ex fuel increased 17% to $5.68 cents.
- EBITDAR of $331 million, an 18% increase.
- EBITDAR margin was 39.6%, an increase of 8 percentage points.
- Total cash, cash equivalents, restricted cash, and short-term investments totaled $954 million, representing 30% of the last twelve months' total operating revenue.
- Net debt-to-LTM EBITDAR2 ratio decreased to 2.6x, compared to 2.7x in the previous quarter.
Enrique Beltranena, President & Chief Executive Officer, said: "2024 was a remarkable year for Volaris. Despite continuous adversity from GTF engine inspections and aircraft groundings, we generated some of our best top and bottom-line results. Thanks to the work of our management team and Ambassadors, we posted a net profit each quarter and achieved a full-year EBITDAR margin of 36%. Throughout the year, we remained focused on reshaping the company, increasing profitability, and upholding our commitment to schedule integrity, customer preference and operational excellence.
Looking ahead, we anticipate the ongoing engine inspections to affect a significant portion of our fleet not only in 2025, but also in 2026 and 2027. In response, we remain focused on harmonizing three critical areas to maximize return on investment: 1) balancing unscheduled engine removals, inspections, and GTF engine returns; 2) managing new aircraft arrivals from Airbus; and 3) optimizing aircraft returns and lease extensions.
For 2025, considering these three elements, our strategic approach will continue to prioritize profitability while reinforcing our position as the preferred airline in our core markets. We will maintain a rational and prudent approach to capacity growth in 2025, targeting an expansion of around 13%. Despite this growth, Volaris' total capacity will remain below 2023 levels, with approximately 40% now allocated to the international market."
1 The financial information, unless otherwise indicated, is presented in accordance with the International Financial Reporting Standards (IFRS).
2 Includes short-term investments.
Full Year 2024 Highlights
(All figures are reported in U.S. dollars and compared to FY 2023 unless otherwise noted)
- Net income of $126 million. Earnings per American Depositary Shares (ADS) of $1.10.
- Total operating revenues of $3,142 million, a 4% decrease.
- Total revenue per available seat mile (TRASM) increased 10% to $9.24 cents.
- Available seat miles (ASMs) decreased 13% to 34.0 billion.
- Total operating expenses of $2,729 million, representing 87% of total operating revenue.
- Total operating expenses per available seat mile (CASM) increased 3% to $8.03 cents.
- Average economic fuel cost decreased 12% to $2.75 per gallon.
- CASM ex fuel increased 12% to $5.40 cents.
- EBITDAR of $1,141 million, a 39% increase.
- EBITDAR margin was 36.3%, an increase of 11 percentage points.
Fourth Quarter and Full Year 2024 Consolidated Financial and Operating Highlights
(All figures are reported in U.S. dollars and compared to 4Q 2023 and FY 2023 unless otherwise noted)
| Fourth Quarter | Full Year | |||||
| 2024 | 2023 | Var. | 2024 | 2023 | Var. | |
| Total operating revenues (millions) | 835 | 899 | (7.1%) | 3,142 | 3,259 | (3.6%) |
| TRASM (cents) | 9.35 | 9.56 | (2.2%) | 9.24 | 8.38 | 10.3% |
| ASMs (millions, scheduled & charter) | 8,930 | 9,402 | (5.0%) | 33,990 | 38,890 | (12.6%) |
| Load Factor (RPMs/ASMs) | 87.3% | 88.1% | (0.8 pp) | 86.8% | 86.0% | 0.8 pp |
| Passengers (thousands, scheduled & charter) | 7,848 | 8,247 | (4.8%) | 29,473 | 33,497 | (12.0%) |
| Fleet (at the end of the period) | 143 | 129 | 14 | 143 | 129 | 14 |
| Total operating expenses (millions) | 718 | 735 | (2.3%) | 2,729 | 3,036 | (10.1%) |
| CASM (cents) | 8.04 | 7.81 | 2.9% | 8.03 | 7.81 | 2.8% |
| CASM ex fuel (cents) | 5.68 | 4.86 | 16.8% | 5.40 | 4.81 | 12.2% |
| Adjusted CASM ex fuel (cents)3 | 5.25 | 5.07 | 3.5% | 5.09 | 4.57 | 11.6% |
| Operating income (EBIT) (millions) | 117 | 164 | (28.7%) | 413 | 223 | 85.2% |
| % EBIT margin | 14.0% | 18.3% | (4.2 pp) | 13.2% | 6.8% | 6.3 pp |
| Net income (millions) | 46 | 112 | (58.9%) | 126 | 8 | >100.0% |
| % Net income margin | 5.5% | 12.5% | (7.0 pp) | 4.0% | 0.2% | 3.8 pp |
| EBITDAR (millions) | 331 | 281 | 17.8% | 1,141 | 823 | 38.6% |
| % EBITDAR margin | 39.6% | 31.3% | 8.4 pp | 36.3% | 25.2% | 11.1 pp |
| Net debt-to-LTM EBITDAR4 | 2.6x | 3.3x | (0.8x) | 2.6x | 3.3x | (0.8x) |
| Note: Figures are rounded for convenience purposes. Further detail found in financial and operating indicators. 3 Excludes fuel expense, aircraft and engine variable lease expenses and sale and lease-back gains. 4 Includes short-term investments. | ||||||
Reconciliation of CASM to Adjusted CASM ex fuel:
| Fourth Quarter | Full Year | |||||
| Reconciliation of CASM | 2024 | 2023 | Var. | 2024 | 2023 | Var. |
| CASM (cents) | 8.04 | 7.81 | 2.9% | 8.03 | 7.81 | 2.8% |
| Fuel expense | (2.36) | (2.95) | (20.0%) | (2.63) | (3.00) | (12.2%) |
| CASM ex fuel | 5.68 | 4.86 | 16.8% | 5.40 | 4.81 | 12.2% |
| Aircraft and engine variable lease expenses5 | (0.58) | 0.15 | N/A | (0.40) | (0.27) | 48.9% |
| Sale and lease back gains | 0.15 | 0.06 | >100.0% | 0.09 | 0.03 | >100.0% |
| Adjusted CASM ex fuel | 5.25 | 5.07 | 3.5% | 5.09 | 4.57 | 11.6% |
| Note: Figures are rounded for convenience purposes. Further detail found in financial and operating indicators. 5 Aircraft redeliveries. | ||||||
Fourth Quarter 2024
(All figures are reported in U.S. dollars and compared to 4Q 2023 unless otherwise noted)
Total operating revenues for the quarter amounted to $835 million, a 7.1% decrease, primarily due to the depreciation of the Mexican peso against the U.S. dollar and a reduction in ASMs, partially offset by higher ancillary revenues.
Total capacity, in terms of available seat miles (ASMs), was 8.9 billion, representing a 5.0% decline.
Booked passengers totaled 7.8 million, a 4.8% decrease. Mexican domestic booked passengers decreased 7.7%, while international booked passengers increased 4.0%.
The load factor for the quarter reached 87.3%, representing a 0.8 percentage point decrease.
TRASM declined 2.2% to $9.35 cents, and total operating revenue per passenger stood at $106, decreasing 2.4%.
The average base fare per passenger stood at $50, an 8.4% decrease. The total ancillary revenue per passenger was $57, reflecting a 3.6% improvement. Ancillary revenues accounted for 53.3% of total operating revenues.
Total operating expenses were $718 million, representing 86.0% of total operating revenues.
CASM totaled $8.04 cents, representing a 2.9% increase.
The average economic fuel cost decreased by 19.9% to $2.51 per gallon.
CASM ex fuel increased 16.8% to $5.68 cents, mainly due to reduced operating leverage as a result of the aircraft-on-ground (AOG) caused by the P&W engine inspections, with an average of 34 AOGs during the quarter.
Comprehensive financing result represented an expense of $76 million, compared to a $35 million expense in the same period of 2023.
Income tax benefit was $5 million, compared to a $17 million expense registered in the fourth quarter of 2023.
Net income in the quarter was $46 million, with an earnings per ADS of $40 cents.
EBITDAR for the quarter was $331 million, a 17.8% improvement, primarily driven by strict cost control, and more favorable jet fuel prices. EBITDAR margin stood at 39.6%, up by 8.4 percentage points.
Cash Flow
For the quarter, net cash flow provided by operating activities was $308 million. Net cash flow used in investing and financing activities was $85 million and $98 million, respectively.
Full Year 2024
(All figures are reported in U.S. dollars and compared to FY 2023 unless otherwise noted)
Total operating revenues were $3,142 million, a decrease of 3.6% compared to 2023.
Volaris transported 29.5 million passengers, a decrease of 12.0%, while total capacity for the year, in terms of available seat miles (ASMs), decreased 12.6% to 34.0 billion.
Load factor reached 86.8%, a 0.8 percentage point increase compared to 2023.
TRASM increased 10.3% to $9.24 cents. Average base fare was $51, a 4.5% increase and total operating revenue per passenger stood at $107, representing an increase of 9.6%.
Ancillary revenue per passenger was $55, posting a 14.8% increase and represented 51.7% of total operating revenues.
Volaris posted total operating expenses of $2,729 million, representing 86.9% of total operating revenues.
CASM increased 2.8% to $8.03 cents. The average economic fuel cost of $2.75 per gallon, a 11.6% decrease compared to 2023 levels. CASM ex fuel increased 12.2% to $5.40 cents.
The comprehensive financing result for the full year 2024 amounted to an expense of $231 million, compared to a $215 million expense posted in 2023.
The Company recorded an income tax expense for the full year 2024 of $56 million, compared to an income tax benefit of $0.4 million registered in 2023.
For the full year 2024, Volaris reported a net income of $126 million, with earnings per ADS of $1.10, compared to an $8 million net income in 2023.
Volaris registered an EBITDAR of $1,141 million, a 38.6% increase compared to 2023. EBITDAR margin was 36.3%, an increase of 11.1 percentage points.
Balance Sheet, Liquidity, and Capital Allocation
As of December 31, 2024, cash, cash equivalents, restricted cash, and short-term investments were $954 million, representing 30.4% of the last twelve months' total operating revenue.
Net cash flow provided by operating activities was $1,090 million. Net cash flow used in investing and financing activities was $472 million and $472 million, respectively.
The financial debt amounted to $810 million, an increase of 24.0% year-over-year, due to pre-delivery payments related to 2026 aircraft deliveries and spare engine financing. Total lease liabilities stood at $3,061 million, an increase of 5.9% due to the increase in the total fleet.
Net debt-to-LTM EBITDAR6 ratio stood at 2.6x, compared to 2.7x in the previous quarter and 3.3x at the end of 2023.
The average exchange rate for the fourth quarter was Ps.20.07 per U.S. dollar and Ps.20.27 per U.S. dollar at the end of the period, reflecting a depreciation of 14.1% and 20.0% of the Mexican peso, respectively. As for full year 2024, the average exchange rate was Ps.18.30 per U.S. dollar, a 3.0% appreciation compared to the previous year.
6 Includes short-term investments.
2025 Guidance
For the full year 2025, the Company expects:
| 2025 | 2024 (1) | |
| Full Year 2025 Guidance | ||
| ASM growth (YoY) | ~13% | -12.6% |
| EBITDAR margin | 34% to 36% | 36.3% |
| CAPEX (2) | ~$250 million | $350 million |
| Average USD/MXN rate | Ps. 21.00 to 21.20 | Ps. 18.30 |
| Average U.S. Gulf Coast jet fuel price | $2.15 to $2.25 | $2.34 |
| (1) For convenience purposes, actual reported figures for 2024 are included. (2) CAPEX net of financed fleet predelivery payments. | ||
For the first quarter of 2025, the Company expects:
| 1Q'25 | 1Q'24 (3) | |
| 1Q'25 Guidance | ||
| ASM growth (YoY) | ~7% | -13.4% |
| TRASM | $7.9 to $8.0 cents | $9.34 cents |
| CASM ex fuel | $5.5 to $5.6 cents | $5.16 cents |
| EBITDAR margin | 28% to 29% | 30.6% |
| Average USD/MXN rate | Ps. 20.60 to 20.80 | Ps. 17.00 |
| Average U.S. Gulf Coast jet fuel price | $2.25 to $2.35 | $2.60 |
| (3) For convenience purposes, actual reported figures for 1Q'24 are included. | ||
The first quarter and full year 2025 outlook presented above includes the compensation that Volaris expects to receive for the projected grounded aircraft resulting from the GTF engine inspections, in accordance with the Company's agreement with Pratt & Whitney.
The Company's outlook is subject to unforeseen disruptions, macroeconomic factors, or other negative impacts that may affect its business and is based on several assumptions, including the foregoing, which are subject to change an