MEXICO CITY, May 20, 2021 /PRNewswire/ -- Volaris* (NYSE:
VLRS and BMV: VOLAR), the ultra-low-cost airline
serving Mexico, the United States and Central America, updates guidance for the
second quarter of 2021.
Over the past three weeks the Company has seen a material
improvement in sales for both the domestic Mexican market and the
transborder US international market. While the recovery from
COVID-19 has been difficult to predict and a high level of
uncertainty remains, based on current trends the Company is
adjusting the guidance it provided during its first quarter 2021
earnings call for the second quarter 2021 as follows:
- Capacity for the second quarter measured in available seat
miles (ASMs) is now projected to be in the range of 110% to 113% of
2019 second quarter capacity.
- The Company expects to generate positive cash in the quarter in
the range of US$800,000 to
US$1,000,000 per day. This is after
fully meeting contractual repayment obligations deferred in
previous quarters which are now due in this quarter.
- Total operating revenues per available seat mile (TRASM) is now
projected to increase between 8% and 10% as compared to the same
period of 2019.
- EBITDAR margin for the second quarter is now projected to be in
the low to mid-thirty percent range driven by improved TRASM
levels.
|
2Q21
Guidance
|
|
Revised
|
Original
|
Capacity (ASMs
vs. 2Q19)
|
110% -
113%
|
110%
|
Average daily
cash burn/generation
|
Cash generation
of
US$ 0.8M - US$
1M
|
Cash burn
of
~US$ 0.6M
|
TRASM (Peso
cents vs. 2Q19)
|
8% - 10%
|
In line with
2Q19
|
EBITDAR
margin (% range)
|
Low to mid
30's
|
High 20's
|
The information included in this current report on Form 6-K
has not been audited. Additionally, this current report on
Form 6-K contains various forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the 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 current
report, 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 that
describe the Company's objectives, plans or goals, or actions the
Company may take in the future, are forward-looking
statements. Forward-looking statements should not be read as
a guarantee or assurance of future performance or results and 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 with respect to 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 a number of 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 revenues;
and government regulation. Additional information concerning these
and other factors is contained in the Company's Securities and
Exchange Commission filings. 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
current report. 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.
About Volaris:
*("Volaris" or the "Company") (NYSE:
VLRS and BMV: VOLAR), is an ultra-low-cost carrier (ULCC), with
point-to-point operations, serving Mexico, the United
States and Central America.
Volaris offers low base fares to build its market, providing
quality service and extensive customer choice. Since beginning
operations in March 2006, Volaris has
increased its routes from five to 170 and its fleet from four to 87
aircraft. Volaris offers more than 425 daily flight segments on
routes that connect 43 cities in Mexico and 25 cities in the United States with one of the youngest
fleet in The Americas. Volaris targets passengers who are visiting
friends and relatives, cost-conscious business and leisure
travelers in Mexico and in
selected destinations in the United
States and Central America.
Volaris has received the ESR Award for Social Corporate
Responsibility for eleven consecutive years. For more information,
please visit: www.volaris.com.
Investor Relations contact: María Elena Rodríguez /
Investor Relations / ir@volaris.com / +52 55 5261 6444
Media contact: Gabriela Fernández / volaris@gcya.mx /
+52 55 5246 0100
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SOURCE Volaris