Volaris Reports Financial Results for the Second Quarter 2024: Net Income of USD $10 million
MEXICO CITY, , July 22, 2024 (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 second quarter of 20241.
Second Quarter 2024 Highlights
(All figures are reported in U.S. dollars and compared to 2Q 2023 unless otherwise noted)
- Net income of $10 million. Earnings per American Depositary Shares (ADS) of $9 cents.
- Total operating revenue of $726 million, a 7.2% decrease.
- Total revenue per available seat mile (TRASM) increased 12% to $8.89 cents.
- Available seat miles (ASMs) decreased by 17% to 8.2 billion.
- Total operating expenses of $660 million, representing 91% of total operating revenue.
- Total operating expenses per available seat mile (CASM) increased 9.1% to $8.08 cents.
- Average economic fuel cost increased 6.1% to $2.86 per gallon.
- CASM ex fuel increased 11% to $5.33 cents.
- EBITDAR of $261 million, a 23% increase.
- EBITDAR margin was 35.9%, an increase of 8.8 percentage points.
- Total cash, cash equivalents, restricted cash, and short-term investments totaled $774 million, representing 24% of the last twelve months' total operating revenue.
- Net debt-to-LTM EBITDAR2 ratio decreased to 2.9x, compared to 3.1x in the previous quarter.
Enrique Beltranena, President & Chief Executive Officer, said: "Volaris continues to perform positively, achieving our highest absolute EBITDAR for a second quarter despite the fleet groundings due to accelerated engine inspections. Volaris' unwavering focus on execution and efficient cost control has enabled us to deliver strong results. Our mitigation plan is on track with favorable outcomes, and we have largely achieved our goals since the inspections began. In fact, we are improving our full-year ASM guidance to -14%3. We currently have a well-balanced market mix, with an increased presence in the cross-border market that has strengthened our TRASM, and our booking curves indicate ongoing robust performance for the summer high season.
With recent updates from Pratt & Whitney, we are cautiously optimistic about this evolving situation, but we recognize that the engine's time on wing remains a challenge. Looking ahead, as grounded aircraft gradually return to our productive fleet, we expect recent unit revenue levels to remain resilient and remain committed to prudent and rational growth, prioritizing profitability."
1 The financial information, unless otherwise indicated, is presented in accordance with the International Financial Reporting Standards (IFRS).
2 Includes short-term investments.
3 See detailed guidance on page 5.
Second Quarter 2024 Consolidated Financial and Operating Highlights
(All figures are reported in U.S. dollars and compared to 2Q 2023 unless otherwise noted)
| Second Quarter | |||
| Consolidated Financial Highlights | 2024 | 2023 | Var. |
| Total operating revenue (millions) | 726 | 782 | (7.2%) |
| TRASM (cents) | 8.89 | 7.92 | 12.2% |
| ASMs (million, scheduled & charter) | 8,173 | 9,873 | (17.2%) |
| Load Factor (RPMs/ASMs) | 85.5% | 84.6% | 0.9 pp |
| Passengers (thousand, scheduled & charter) | 7,087 | 8,373 | (15.4%) |
| Fleet (at the end of the period) | 136 | 123 | 13 |
| Total operating expenses (millions) | 660 | 731 | (9.7%) |
| CASM (cents) | 8.08 | 7.40 | 9.1% |
| CASM ex fuel (cents) | 5.33 | 4.82 | 10.7% |
| Adjusted CASM ex fuel (cents)4 | 4.86 | 4.43 | 9.6% |
| Operating income (EBIT) (millions) | 66 | 51 | 29.4 % |
| % EBIT Margin | 9.1% | 6.5% | 2.6 pp |
| Net income (millions) | 10 | 6 | 66.7 % |
| % Net income Margin | 1.4% | 0.7% | 0.7 pp |
| EBITDAR (millions) | 261 | 212 | 23.1 % |
| % EBITDAR Margin | 35.9% | 27.1% | 8.8 pp |
| Net debt-to-EBITDAR5 | 2.9x | 3.5x | (0.6x) |
Reconciliation of CASM to Adjusted CASM ex fuel:
| Second Quarter | |||
| Reconciliation of CASM | 2024 | 2023 | Var. |
| CASM (cents) | 8.08 | 7.40 | 9.1% |
| Fuel expense | (2.75) | (2.58) | 6.9% |
| CASM ex fuel | 5.33 | 4.82 | 10.7% |
| Aircraft and engine variable lease expenses6 | (0.56) | (0.41) | 36.2% |
| Sale and lease back gains | 0.09 | 0.02 | >100% |
| Adjusted CASM ex fuel | 4.86 | 4.43 | 9.6% |
| Note: Figures are rounded for convenience purposes. Further detail found in financial and operating indicators. |
| 4 Excludes fuel expense, aircraft and engine variable lease expenses and sale and lease-back gains. |
| 5 Includes short-term investments. |
| 6 Aircraft redeliveries. |
Second Quarter 2024
(All figures are reported in U.S. dollars and compared to 2Q 2023 unless otherwise noted)
Total operating revenue amounted to $726 million in the quarter, driven by strong domestic demand and an improvement in total operating revenue per passenger. This represents a 7.2% decrease, notwithstanding the 17% reduction in total capacity resulting from aircraft-on-ground (AOG) due to Pratt & Whitney's accelerated engine inspections.
Total capacity, in terms of available seat miles (ASMs), was 8.2 billion.
Booked passengers totaled 7.1 million, a 15% decrease. Mexican domestic and international booked passengers decreased 18% and 4.9%, respectively.
The load factor for the quarter reached 85.5%, representing an increase of 0.9 percentage points.
TRASM rose 12% to $8.89 cents, and total operating revenue per passenger stood at $102, representing a 9.8% increase.
The average base fare was $49, a 4.3% increase. The total ancillary revenue per passenger was $53, reflecting a 15% improvement. Ancillary revenue represented 52% of total operating revenue, up by 2.6 percentage points.
Total operating expenses were $660 million, representing 91% of total operating revenue.
CASM totaled $8.08 cents, a 9.1% increase when compared to the same period of 2023.
The average economic fuel cost rose 6.1% to $2.86 per gallon.
CASM ex fuel increased 11% to $5.33 cents, mainly due to the AOG due to Pratt and Whitney's engine preventive accelerated inspections.
Comprehensive financing result represented an expense of $52 million, compared to a $43 million expense in the same period of the previous year.
Income tax expense was $4 million, compared to a $2 million expense registered in the second quarter of 2023.
Net income in the quarter was $10 million, with an earnings per ADS of $9 cents.
EBITDAR for the quarter was $261 million, a 23% improvement, primarily attributable to strong unit revenues and efficient cost control, partially offset by an increase in fuel prices. EBITDAR margin stood at 35.9%, up by 8.8 percentage points.
Balance Sheet, Liquidity, and Capital Allocation
For the quarter, net cash flow provided by operating activities was $304 million. Net cash flow used in investing and financing activities was $141 million and $149 million, respectively.
As of June 30, 2024, cash, cash equivalents, restricted cash, and short-term investments were $774 million, representing 24% of the last twelve months' total operating revenue.
The financial debt amounted to $638 million, while total lease liabilities stood at $3,003 million, resulting in a net debt of $2,8677 million.
Net debt-to-LTM EBITDAR7 ratio stood at 2.9x, compared to 3.1x in the previous quarter and 3.5x in the same period of 2023.
The average exchange rate for the period was Ps.17.21 per U.S. dollar, a 2.9% appreciation. At the end of the second quarter, the exchange rate stood at Ps.18.38 per U.S. dollar.
7 Includes short-term investments.
2024 Guidance
For the third quarter of 2024, the Company expects:
| 3Q'24 | 3Q'23 (1) | |||
| 3Q'24 Guidance | ||||
| ASM growth (YoY) | ~ -14% | +8.2% | ||
| TRASM | ~$9.3 cents | $8.37 cents | ||
| CASM ex fuel | ~$5.6 cents | $4.91 cents | ||
| EBITDAR margin | ~33% | 24.4% | ||
| Average USD/MXN rate | Ps.18.40 to 18.60 | Ps.17.06 | ||
| Average U.S. Gulf Coast jet fuel price | $2.60 to $2.70 | $2.77 | ||
(1) For convenience purposes, actual reported figures for 3Q'23 are included.
For the full year 2024, the Company expects:
| Updated Guidance | Prior Guidance | |
| Full Year 2024 Guidance | ||
| ASM growth (YoY) | ~ -14% | -16% to -18% |
| EBITDAR margin | 32% to 34% | 32% to 34% |
| CAPEX (2) | $400 million | $400 million |
| Average USD/MXN rate | Ps.17.80 to 18.00 | Ps.17.30 to 17.50 |
| Average U.S. Gulf Coast jet fuel price | $2.60 to $2.70 | $2.60 to $2.70 |
(2) CAPEX net of financed fleet predelivery payments.
The third quarter and full year 2024 outlook presented above includes the compensation that Volaris expects to receive for the projected grounded aircraft resulting from the GTF engine removals, 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 and may be outside the control of the Company and its management. The Company's expectations may change if actual results vary from these assumptions. There can be no assurances that Volaris will achieve these results.
Fleet
During the second quarter, Volaris added two A321neo aircraft to its fleet, bringing the total number of aircraft to 136. At the end of the quarter, Volaris' fleet had an average age of 6.1 years and an average seating capacity of 197 passengers per aircraft. Of the total fleet, 60% of the aircraft are New Engine Option (NEO) models.
| Second Quarter | First Quarter | |||||
| Total Fleet | 2024 | 2023 | Var. | 2024 | Var. | |
| CEO | ||||||
| A319 | 3 | 3 | - | 3 | - | |
| A320 | 42 | 40 | 2 | 42 | - | |
| A321 | 10 | 10 | - | 10 | - | |
| NEO | ||||||
| A320 | 51 | 51 | - | 51 | - | |
| A321 | 30 | 19 | 11 | 28 | 2 | |
| Total aircraft at the end of the period | 136 | 123 | 13 | 134 | 2 | |
Investors are urged to carefully read the Company's periodic reports filed with or provided to the Securities and Exchange Commission, for additional information regarding the Company.
Investor Relations Contact
Ricardo Martínez / [email protected]
Media Contact
Israel Álvarez / [email protected]
Conference Call Details
| Date: | Tuesday, July 23, 2024 |
| Time: | 9:00 am Mexico City / 11:00 am New York (USA) (ET) |
| Webcast link: | Volaris Webcast (View the live webcast) |
| Dial-in & Live Q&A link: | Volaris Dial-in and Live Q&A
|
About Volaris
*Controladora Vuela Compañía de Aviación, S.A.B. de C.V. ("Volaris" or "the Company") (NYSE:VLRS, 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 201 and its fleet from 4 to 137 aircraft. Volaris offers more than 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. 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.
Forward-Looking Statements
Statements in this release contain various forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended, which represent the Company's expectations, beliefs, or projections concerning future events and financial trends affecting the financial condition of our business. When used in this release, the words "expects," "intends," "estimates," "predicts," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "potential," "outlook," "may," "continue," "will," "should," "seeks," "targets" and similar expressions are intended to identify forward-looking statements. Similarly, statements describing the Company's objectives, plans or goals, or actions the Company may take in the future are forward-looking. Forward-looking statements include, without limitation, statements regarding the Company's outlook, the expectation of receiving certain compensation in connection with the GTF engine removals, and the anticipated execution of its business plan and focus on its priorities. Forward-looking statements should not be read as a guarantee or assurance of future performance or results. They will not necessarily be accurate indications of the times at or by which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time concerning future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Forward-looking statements are subject to several factors that could cause the Company's actual results to differ materially from the Company's expectations, including the competitive environment in the airline industry, the Company's ability to keep costs low; changes in fuel costs, the impact of worldwide economic conditions on customer travel behavior; the Company's ability to generate non-ticket revenue; and government regulation. The Company's US Securities and Exchange Commission filings contain additional information concerning these and other factors. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date of this release. You should not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
Supplemental Information on Non-IFRS Measures
We evaluate our financial performance by using various financial measures that are not performance measures under International Financial Reporting Standards ("non-IFRS measures"). These non-IFRS measures include CASM, CASM ex fuel, Adjusted CASM ex fuel, EBITDAR, Net debt-to-LTM EBITDAR, Total cash, cash equivalents, restricted cash, and short-term investments. We define CASM as total operating expenses by available seat mile. We define CASM ex fuel as total operating expenses by available seat mile, excluding fuel expense. We define Adjusted CASM ex fuel as total operating expenses by available seat mile, excluding fuel expense, aircraft and engine variable lease expenses and sale and lease back gains. We define EBITDAR as earnings before interest, income tax, depreciation and amortization, depreciation of right of use assets and aircraft and engine variable lease expenses. We define Net debt-to-LTM EBITDAR as Net debt divided by LTM EBITDAR. We define Total cash, cash equivalents, restricted cash, and short-term investments as the sum of cash, cash equivalents, restricted cash, and short-term investments.
These non-IFRS measures are provided as supplemental information to the financial information presented in this release that is calculated and presented in accordance with International Financial Reporting Standards ("IFRS") because we believe that they, in conjunction with the IFRS financial information, provide useful information to management's, analysts and investors overall understanding of our operating performance.
Because non-IFRS measures are not calculated in accordance with IFRS, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related IFRS measures presented in this release and may not be the same as or comparable to
similarly titled measures presented by other companies due to possible differences in the method of calculation and the items being adjusted.
We encourage investors to review our financial statements and other filings with the Securities and Exchange Commission in their entirety for additional information regarding the Company and not to rely on any single financial measure.
Shareholders have the ability to receive a hard copy of the 2023 audited consolidated financial statements free of charge upon request.
| Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Financial and Operating Indicators | |||
| Unaudited (U.S. dollars, except otherwise indicated) | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Variance |
| Total operating revenues (millions) | 726 | 782 | (7.2%) |
| Total operating expenses (millions) | 660 | 731 | (9.7%) |
| EBIT (millions) | 66 | 51 | 29.4% |
| EBIT margin | 9.1% | 6.5% | 2.6 pp |
| Depreciation and amortization (millions) | 150 | 121 | 24.0% |
| Aircraft and engine variable lease expenses (millions) | 45 | 40 | 12.5% |
| Net income (millions) | 10 | 6 | 66.7% |
| Net income margin | 1.4% | 0.7% | 0.7 pp |
| Earnings per share (1): | |||
| Basic | 0.01 | 0.00 | 89.6% |
| Diluted | 0.01 | 0.00 | 89.1% |
| Earnings per ADS*: | |||
| Basic | 0.09 | 0.05 | 89.6% |
| Diluted | 0.09 | 0.05 | 89.1% |
| Weighted average shares outstanding: | |||
| Basic | 1,150,766,440 | 1,152,974,446 | (0.2%) |
| Diluted | 1,165,976,677 | 1,165,244,334 | 0.1% |
| Financial Indicators | |||
| Total operating revenue per ASM (TRASM) (cents) (2) | 8.89 | 7.92 | 12.2% |
| Average base fare per passenger | 49 | 47 | 4.3% |
| Total ancillary revenue per passenger (3) | 53 | 46 | 15.3% |
| Total operating revenue per passenger | 102 | 93 | 9.8% |
| Operating expenses per ASM (CASM) (cents) (2) | 8.08 | 7.40 | 9.1% |
| CASM ex fuel (cents) (2) | 5.33 | 4.82 | 10.7% |
| Adjusted CASM ex fuel (cents) (2) (4) | 4.86 | 4.43 | 9.6% |
| Operating Indicators | |||
| Available seat miles (ASMs) (millions) (2) | 8,173 | 9,873 | (17.2%) |
| Domestic | 4,868 | 6,614 | (26.4%) |
| International | 3,305 | 3,260 | 1.4% |
| Revenue passenger miles (RPMs) (millions) (2) | 6,988 | 8,348 | (16.3%) |
| Domestic | 4,388 | 5,643 | (22.2%) |
| International | 2,600 | 2,705 | (3.9%) |
| Load factor (5) | 85.5% | 84.6% | 0.9 pp |
| Domestic | 90.1% | 85.3% | 4.9 pp |
| International | 78.7% | 83.0% | (4.3 pp) |
| Booked passengers (thousands) (2) | 7,087 | 8,373 | (15.4%) |
| Domestic | 5,324 | 6,518 | (18.3%) |
| International | 1,763 | 1,855 | (4.9%) |
| Departures (2) | 42,495 | 51,127 | (16.9%) |
| Block hours (2) | 109,638 | 132,965 | (17.5%) |
| Aircraft at end of period | 136 | 123 | 13 |
| Average aircraft utilization (block hours) | 13.05 | 13.27 | (1.7%) |
| Fuel gallons accrued (millions) | 77.93 | 94.04 | (17.1%) |
| Average economic fuel cost per gallon (6) | 2.86 | 2.70 | 6.1% |
| Average exchange rate | 17.21 | 17.72 | (2.9%) |
| Exchange rate at the end of the period | 18.38 | 17.07 | 7.6% |
| *Each ADS represents ten CPOs and each CPO represents a financial interest in one Series A share. | |||
| (1) The basic and diluted loss or earnings per share are calculated in accordance with IAS 33. Basic loss or earnings per share is calculated by dividing net loss or earnings by the average number of shares outstanding (excluding treasury shares). Diluted loss or earnings per share is calculated by dividing net loss or earnings by the average number of shares outstanding adjusted for dilutive effects. | (2) Includes schedule and charter. (3) Includes "Other passenger revenues" and "Non-passenger revenues". (4) Excludes fuel expense, aircraft and engine variable lease expenses and sale and lease-back gains. (5) Includes schedule. (6) Excludes Non-creditable VAT. | ||
| Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Financial and Operating Indicators | |||
| Unaudited (U.S. dollars, except otherwise indicated) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | Variance |
| Total operating revenues (millions) | 1,494 | 1,513 | (1.3%) |
| Total operating expenses (millions) | 1,324 | 1,493 | (11.3%) |
| EBIT (millions) | 170 | 20 | >100% |
| EBIT margin | 11.4% | 1.3% | 10.1 pp |
| Depreciation and amortization (millions) | 283 | 240 | 17.9% |
| Aircraft and engine variable lease expenses (millions) | 42 | 76 | (44.7%) |
| Net income (loss) (millions) | 44 | (65) | N/A |
| Net income (loss) margin | 2.9% | (4.3%) | 7.2 pp |
| Earnings (loss) per share (1): | |||
| Basic | 0.04 | (0.06) | N/A |
| Diluted | 0.04 | (0.06) | N/A |
| Earnings (loss) per ADS*: | |||
| Basic | 0.38 | (0.57) | N/A |
| Diluted | 0.37 | (0.56) | N/A |
| Weighted average shares outstanding: | |||
| Basic | 1,151,108,712 | 1,152,750,608 | (0.1%) |
| Diluted | 1,165,976,677 | 1,165,147,164 | 0.1% |
| Financial Indicators | |||
| Total operating revenue per ASM (TRASM) (cents) (2) | 9.12 | 7.81 | 16.7% |
| Average base fare per passenger | 52 | 47 | 9.4% |
| Total ancillary revenue per passenger (3) | 55 | 44 | 24.5% |
| Total operating revenue per passenger | 107 | 91 | 16.7% |
| Operating expenses per ASM (CASM) (cents) (2) | 8.08 | 7.71 | 4.8% |
| CASM ex fuel (cents) (2) | 5.25 | 4.74 | 10.8% |
| Adjusted CASM ex fuel (cents) (2) (4) | 5.09 | 4.36 | 16.8% |
| Operating Indicators | |||
| Available seat miles (ASMs) (millions) (2) | 16,390 | 19,362 | (15.3%) |
| Domestic | 9,636 | 13,151 | (26.7%) |
| International | 6,754 | 6,211 | 8.7% |
| Revenue passenger miles (RPMs) (millions) (2) | 14,134 | 16,415 | (13.9%) |
| Domestic | 8,717 | 11,189 | (22.1%) |
| International | 5,417 | 5,226 | 3.7% |
| Load factor (5) | 86.2% | 84.8% | 1.4 pp |
| Domestic | 90.5% | 85.1% | 5.4 pp |
| International | 80.2% | 84.2% | (4.0 pp) |
| Booked passengers (thousands) (2) | 14,010 | 16,559 | (15.4%) |
| Domestic | 10,309 | 12,958 | (20.4%) |
| International | 3,702 | 3,601 | 2.8% |
| Departures (2) | 82,923 | 101,318 | (18.2%) |
| Block hours (2) | 219,001 | 263,514 | (16.9%) |
| Aircraft at end of period | 136 | 123 | 13 |
| Average aircraft utilization (block hours) | 12.89 | 13.39 | (3.8%) |
| Fuel gallons accrued (millions) | 157.15 | 186.27 | (15.6%) |
| Average economic fuel cost per gallon (6) | 2.93 | 3.07 | (4.5%) |
| Average exchange rate | 17.10 | 18.21 | (6.1%) |
| Exchange rate at the end of the period | 18.38 | 17.07 | 7.6% |
| *Each ADS represents ten CPOs and each CPO represents a financial interest in one Series A share | |||
| (1) The basic and diluted loss or earnings per share are calculated in accordance with IAS 33. Basic loss or earnings per share is calculated by dividing net loss or earnings by the average number of shares outstanding (excluding treasury shares). Diluted loss or earnings per share is calculated by dividing net loss or earnings by the average number of shares outstanding adjusted for dilutive effects. | (2) Includes schedule and charter. (3) Includes "Other passenger revenues" and "Non-passenger revenues". (4) Excludes fuel expense, aircraft and engine variable lease expenses and sale and lease-back gains. (5) Includes schedule. (6) Excludes Non-creditable VAT. | ||
| Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Consolidated Statement of Operations | |||
| Unaudited (In millions of U.S. dollars) | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Variance |
| Operating revenues: | |||
| Passenger revenues | 693 | 746 | (7.1%) |
| Fare revenues | 349 | 396 | (11.9%) |
| Other passenger revenues | 344 | 350 | (1.7%) |
| Non-passenger revenues | 33 | 36 | (8.3%) |
| Cargo | 5 | 5 | 0.0% |
| Other non-passenger revenues | 28 | 31 | (9.7%) |
| Total operating revenues | 726 | 782 | (7.2%) |
| Other operating income | (48) | (3) | >100% |
| Fuel expense | 224 | 255 | (12.2%) |
| Aircraft and engine variable lease expenses | 45 | 40 | 12.5% |
| Salaries and benefits | 99 | 96 | 3.1% |
| Landing, take-off and navigation expenses | 117 | 127 | (7.9%) |
| Sales, marketing and distribution expenses | 32 | 38 | (15.8%) |
| Maintenance expenses | 11 | 25 | (56.0%) |
| Depreciation and amortization | 50 | 31 | 61.3% |
| Depreciation of right of use assets | 100 | 90 | 11.1% |
| Other operating expenses | 30 | 32 | (6.3%) |
| Operating expenses | 660 | 731 | (9.7%) |
| Operating income | 66 | 51 | 29.4% |
| Finance income | 12 | 9 | 33.3% |
| Finance cost | (72) | (57) | 26.3% |
| Exchange gain, net | 8 | 5 | 60.0% |
| Comprehensive financing result | (52) | (43) | 20.9% |
| Income before income tax | 14 | 8 | 75.0% |
| Income tax expense | (4) | (2) | 100.0% |
| Net income | 10 | 6 | 66.7% |
| Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Consolidated Statement of Operations | |||
| Unaudited (In millions of U.S. dollars) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | Variance |
| Operating revenues: | |||
| Passenger revenues | 1,425 | 1,447 | (1.5%) |
| Fare revenues | 724 | 782 | (7.4%) |
| Other passenger revenues | 701 | 665 | 5.4% |
| Non-passenger revenues | 69 | 66 | 4.5% |
| Cargo | 11 | 10 | 10.0% |
| Other non-passenger revenues | 58 | 56 | 3.6% |
| Total operating revenues | 1,494 | 1,513 | (1.3%) |
| Other operating income | (93) | (4) | >100% |
| Fuel expense | 464 | 576 | (19.4%) |
| Aircraft and engine variable lease expenses | 42 | 76 | (44.7%) |
| Salaries and benefits | 201 | 187 | 7.5% |
| Landing, take-off and navigation expenses | 244 | 237 | 3.0% |
| Sales, marketing and distribution expenses | 78 | 74 | 5.4% |
| Maintenance expenses | 48 | 51 | (5.9%) |
| Depreciation and amortization | 85 | 63 | 34.9% |
| Depreciation of right of use assets | 198 | 177 | 11.9% |
| Other operating expenses | 57 | 56 | 1.8% |
| Operating expenses | 1,324 | 1,493 | (11.3%) |
| Operating income | 170 | 20 | >100% |
| Finance income | 24 | 16 | 50.0% |
| Finance cost | (134) | (115) | 16.5% |
| Exchange gain (loss), net | 2 | (8) | N/A |
| Comprehensive financing result | (108) | (107) | 0.9% |
| Income (loss) before income tax | 62 | (87) | N/A |
| Income tax (expense) benefit | (18) | 22 | N/A |
| Net income (loss) | 44 | (65) | N/A |
| Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries | |||
| Reconciliation of Total Ancillary Revenue per Passenger | |||
| The following table provides additional details about the components of total ancillary revenue for the quarter: | |||
| Unaudited (In millions of U.S. dollars) | Three months ended June 30, 2024 | Three months ended June 30, 2023 | Variance |
| Other passenger revenues | 344 | 350 | (1.7%) |
| Non-passenger revenues | 33 | 36 | (8.3%) |
| Total ancillary revenues | 377 | 386 | (2.3%) |
| Booked passengers (thousands) (1) | 7,087 | 8,373 | (15.4%) |
| Total ancillary revenue per passenger | 53 | 46 | 15.3% |
| (1) Includes schedule and charter. | |||
| Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries | |||
| Reconciliation of Total Ancillary Revenue per Passenger | |||
| The following table provides additional details about the components of total ancillary revenue for the first half of the year: | |||
| Unaudited (In millions of U.S. dollars) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | Variance |
| Other passenger revenues | 701 | 665 | 5.4% |
| Non-passenger revenues | 69 | 66 | 4.5% |
| Total ancillary revenues | 770 | 731 | 5.3% |
| Booked passengers (thousands) (1) | 14,010 | 16,559 | (15.4%) |
| Total ancillary revenue per passenger | 55 | 44 | 24.5% |
| (1) Includes schedule and charter. | |||
| Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Consolidated Statement of Financial Position | ||
(In millions of U.S. dollars) | As of June 30, 2024 Unaudited | As of December 31, 2023 Audited |
| Assets | ||
| Cash, cash equivalents and restricted cash | 758 | 774 |
| Short-term investments | 16 | 15 |
| Total cash, cash equivalents, restricted cash, and short-term investments (1) | 774 | - |
| Accounts receivable, net | 226 | 251 |
| Inventories | 16 | 16 |
| Guarantee deposits | 200 | 148 |
| Prepaid expenses and other current assets | 57 | 44 |
| Total current assets | 1,273 | 1,248 |
| Right of use assets | 2,436 | 2,338 |
| Rotable spare parts, furniture and equipment, net | 954 | 805 |
| Intangible assets, net | 21 | 16 |
| Derivatives financial instruments | 1 | 2 |
| Deferred income taxes | 249 | 236 |
| Guarantee deposits | 441 | 462 |
| Other long-term assets | 43 | 39 |
| Total non-current assets | 4,145 | 3,898 |
| Total assets | 5,418 | 5,146 |
| Liabilities and equity | ||
| Unearned transportation revenue | 459 | 343 |
| Accounts payable | 209 | 250 |
| Accrued liabilities | 184 | 163 |
| Other taxes and fees payable | 271 | 262 |
| Income taxes payable | 14 | 8 |
| Financial debt | 325 | 220 |
| Lease liabilities | 357 | 373 |
| Other liabilities | 6 | 2 |
| Total short-term liabilities | 1,825 | 1,621 |
| Financial debt | 313 | 433 |
| Accrued liabilities | 10 | 14 |
| Employee benefits | 15 | 15 |
| Deferred income taxes | 16 | 16 |
| Lease liabilities | 2,646 | 2,518 |
| Other liabilities | 307 | 286 |
| Total long-term liabilities | 3,307 | 3,282 |
| Total liabilities | 5,132 | 4,903 |
| Equity | ||
| Capital stock | 248 | 248 |
| Treasury shares | (12) | (12) |
| Contributions for future capital increases | - | - |
| Legal reserve | 17 | 17 |
| Additional paid-in capital | 284 | 282 |
| Accumulated deficit | (104) | (148) |
| Accumulated other comprehensive loss | (147) | (144) |
| Total equity | 286 | 243 |
| Total liabilities and equity | 5,418 | 5,146 |
| (1) Non-GAAP measure. | ||
| Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Consolidated Statement of Cash Flows – Cash Flow Data Summary | ||
| Unaudited (In millions of U.S. dollars) | Three months ended June 30, 2024 | Three months ended June 30, 2023 |
| Net cash flow provided by operating activities | 304 | 159 |
| Net cash flow used in investing activities | (141) | (102) |
| Net cash flow used in financing activities* | (149) | (109) |
| Increase (decrease) in cash, cash equivalents and restricted cash | 14 | (52) |
| Net foreign exchange differences | (8) | 3 |
| Cash, cash equivalents and restricted cash at beginning of period | 752 | 704 |
| Cash, cash equivalents and restricted cash at end of period | 758 | 655 |
| *Includes aircraft rental payments of $143 million and $131 million for the three months ended June 30, 2024, and 2023, respectively. | ||
| Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Consolidated Statement of Cash Flows – Cash Flow Data Summary | ||
| Unaudited (In millions of U.S. dollars) | Six months ended June 30, 2024 | Six months ended June 30, 2023 |
| Net cash flow provided by operating activities | 549 | 367 |
| Net cash flow used in investing activities | (238) | (211) |
| Net cash flow used in financing activities* | (320) | (219) |
| Decrease in cash, cash equivalents and restricted cash | (9) | (63) |
| Net foreign exchange differences | (7) | 6 |
| Cash, cash equivalents and restricted cash at beginning of period | 774 | 712 |
| Cash, cash equivalents and restricted cash at end of period | 758 | 655 |
| *Includes aircraft rental payments of $284 million and $258 million for the six months ended June 30, 2024, and 2023, respectively. | ||
