MEXICO CITY, Feb. 24, 2022 /PRNewswire/ -- Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE: VLRS and BMV: VOLAR) ("Volaris" or "The Company"), the ultra-low-cost airline serving Mexico, the United States of America, Central and South America, today announces its financial results for the fourth quarter and full year 2021[1].

Volaris Logo

Fourth Quarter 2021 Highlights
(All metrics are compared to 4Q 2019 unless otherwise noted)

Volaris, due to its disciplined growth strategy, reported double-digit growth in revenue and EBITDAR in the fourth quarter, built a strong liquidity position and improved its balance sheet.

  • Total operating revenue of Ps.13,954 million, a 43% increase. Total revenue per available seat mile (TRASM) increased 13% to Ps.176 cents.
  • Operating expenses of Ps.10,922 million, a 41% increase. Operating expenses per available seat mile (CASM) increased 3% to US$6.60 cents, while CASM ex-fuel grew 3% to US$4.08 cents.
  • Net loss of Ps.200 million, impacted by a one-off, non-cash accounting charge of Ps.2,251 million (US$109 million) related to the termination of a non-derivative financial instrument as a result of the change in the functional currency. Earnings per share of negative Ps.0.17 and earnings per ADS of negative US$0.08.
  • Adjusted net income (excluding the one-off, non-cash accounting charge related to the termination of a non-derivative financial instrument) of Ps.1,559 million, a 21% increase. Adjusted earnings per share of Ps.1.34 and adjusted earnings per ADS of US$0.65.
  • EBITDAR of Ps.5,161 million, a 45% increase, with an EBITDAR margin of 37.0%, an increase of 0.5 percentage points.
  • Cash generation of Ps.2,587 million (includes the issuance of VOLARCB 21L) with a cash and cash equivalents position of Ps.15,255 million or US$741 million, representing 34% of the last twelve months total operating revenue. On October 13th, 2021, Volaris issued successfully its first sustainability-linked asset backed trust notes (VOLARCB 21L) for an amount of Ps.1,500 million.
  • Net debt-to-LTM EBITDAR ratio of 2.5 times, the lowest level in Volaris' history.
  • As of December 31st, 2021, the Company changed its functional currency from the Mexican Peso to the US Dollar. 

Full Year 2021 Highlights
(All metrics are compared to FY 2019 unless otherwise noted)

Volaris reported a solid 2021, driven by a continued recovery of passenger demand in the Company´s markets, as well as its disciplined growth strategy.

  • Total operating revenue of Ps.44,662 million, a 29% increase. Total revenue per available seat mile (TRASM) increased 13% to Ps.161 cents.
  • Operating expenses of Ps.36,596 million, a 20% increase. Operating expenses per available seat mile (CASM) remained unchanged at US$6.45 cents, while CASM ex-fuel increased 7% to US$4.25 cents.
  • Net income of Ps.2,121 million with a net margin of 4.7%. Earnings per share of Ps.1.82 and earnings per ADS of US$0.88. As a result of the change in the functional currency, the Company recorded a one-off, non-cash accounting charge related to the termination of a non-derivative financial instrument of Ps.2,251 million (US$109 million).
  • Adjusted net income (excluding the one-off, non-cash accounting charge related to the termination of a non-derivative financial instrument) of Ps.3,879 million, a 47% increase. Adjusted earnings per share of Ps.3.33 and earnings per ADS of US$1.62.
  • EBITDAR of Ps.16,375 million, increased 53% with an EBITDAR margin of 36.7%, an increase of 5.9 percentage points.
  • Cash generation of Ps.5,152 million with a cash and cash equivalents position of Ps.15,255 million or US$741 million.

"In 2021, despite the demand uncertainty associated with Covid-19, we were able to report a strong performance. This highlights our team's ability to manage and adapt to changing market dynamics. Thanks to our devoted family of ambassadors and our experienced management team, we are now reaping the rewards of our joint effort," said Enrique Beltranena, President & Chief Executive Officer. "Going forward we will continue to focus on executing our growth strategy. This centers upon catering to the travel demands of a large, growing middle class in Mexico, focusing on longer-haul bus substitution, and growth in our international markets. Our resilient ultra-low-cost business model positions us well for success in these markets." Enrique added.

Fourth Quarter and Full Year 2021 Financial and Operations Highlights
(All metrics are compared to 4Q and full year 2019 unless otherwise noted)

 


Fourth Quarter

Full Year

Consolidated Financial Highlights

2021

2019

Var.

2021

2019

Var.

Total Operating Revenue (Ps. million)

13,954

9,729

43%

44,662

34,753

29%

TRASM (Ps. cents)

176

155

13%

161

142

13%

ASMs (million, scheduled & charter)

8,022

6,300

27%

28,097

24,499

15%

Load Factor (scheduled, RPMs/ASMs)

86.9%

87.6%

-0.8 pp

84.7%

85.9%

-1.2 pp

Passengers (thousand, scheduled & charter)

7,281

5,738

27%

24,405

21,975

11%

Fleet (end of period)

101

82

19

101

82

19

Total Operating Expenses (Ps. million)

10,922

7,762

41%

36,596

30,397

20%

CASM (US$ cents)

6.60

6.40

3%

6.45

6.45

0%

CASM excl. fuel (US$ cents)

4.08

3.94

3%

4.25

3.98

7%

Operating income (EBIT) (Ps. million)

3,032

1,967

54%

8,066

4,355

85%

% EBIT Margin

21.7%

20.2%

1.5 pp

18.1%

12.5%

5.5 pp

Net (loss) income (Ps. million)

(200)

1,287

N/A

2,121

2,639

(20%)

% Net (loss) income margin

-1.4%

13.2%

-14.7 pp

4.7%

7.6%

-2.8 pp

Adjusted Net income(1) (Ps. million)

1,559

1,287

21%

3,879

2,639

47%

% Adjusted Net income margin

11.2%

13.2%

-2.0 pp

8.7%

7.6%

1.1 pp

EBITDAR (Ps. million)

5,161

3,549

45%

16,375

10,696

53%

% EBITDAR Margin

37.0%

36.5%

0.5 pp

36.7%

30.8%

5.9 pp

Net debt-to-LTM EBITDAR

2.5x

3.5x

-1.0x

2.5x

3.5x

-1.0x

1)  Excludes the one-off, non-cash accounting charge related to the termination of a non-derivative financial instrument.

Total operating revenue in the quarter was Ps.13,954 million, a 43% increase, driven by higher capacity, healthy load factors and stronger unit revenue per passenger. Moreover, demand remained relatively strong at the end of the quarter despite the increase of Covid-19 cases (Omicron variant) in our markets.

Volaris transported 7.3 million passengers in the quarter, an increase of 27%. Domestic and international passengers increased 29% and 19%, respectively; while total capacity, in terms of available seat miles (ASMs), increased 27% to 8.0 billion. Load factor reached 86.9%, slightly below pre-pandemic levels.

TRASM of Ps.176 cents represented a 13% increase. Average base fare was Ps.1,125, a decrease of 2%. Ancillary revenue per passenger was Ps.810, a 45% increase, due to the continued growth of new and traditional products, such as First Baggage, Seat Selection and More Flexibility. Ancillary revenue represented 42% of total operating revenue, compared to 33% in the same period of 2019. Finally, total operating revenue per passenger increased 14% to Ps.1,935.

For full year 2021, Volaris reported a total operating revenue of Ps.44,662 million, an increase of 29% as compared to 2019 levels. This performance demonstrates the Company's ability to increase capacity while improving load factors and unit revenue despite the changing demand environment throughout the year resulting from the different waves of Covid.

Total operating expenses in the quarter were Ps.10,992 million, a 41% increase, driven by capacity growth and the incorporation of new fuel-efficient aircraft. The average economic fuel cost per gallon increased 16% to Ps.53.1 per gallon (US$2.58) in the period. CASM totaled US$6.60 cents, 3% higher when compared to same period of 2019. CASM ex-fuel increased 3% to US$4.08 cents.

For full year 2021, Volaris posted total operating expenses of Ps.36,596 million, an increase of 20% as compared to 2019 levels, driven by higher capacity growth and the incorporation of new aircraft to the fleet.  

Comprehensive financing result represented a loss of Ps.3,632 million in fourth quarter of 2021, compared to a loss of Ps.164 million in the same period of 2019. This result was significantly impacted by a one-off, non-cash accounting charge related to the termination of a non-derivative financial instrument that generated a foreign exchange loss of Ps.2,251 million or US$109 million. Volaris determined that the currency which most reflects its operations is the US Dollar. As a result of this change, Volaris also concluded that the hedging strategies related to non-derivative financial instruments will no longer be effective and must be termination.

In the fourth quarter, the Mexican peso depreciated 8% against the US dollar to an average of Ps.20.75 per US dollar. At the end of the quarter, the Mexican peso stood at Ps.20.58 per US dollar, a 1% depreciation compared to the exchange rate at the end of the third quarter of 2021.

For the full year 2021, Volaris reported a comprehensive financing loss of Ps.5,352 million as compared to a loss of Ps.662 million posted in 2019. As mentioned above, in the fourth quarter of 2021, Volaris recorded a one-off, non-cash accounting charge of Ps. 2,251 million related to the termination of a non-derivative financial instrument as a result of the change in the functional currency as of December 31, 2021

Income tax benefit was Ps.400 million, compared to the expense of Ps.516 million posted in the fourth quarter of 2019.

For full year 2021, Volaris reported an income tax expense of Ps.594 million, compared to the expense of Ps.1,095 registered in 2019.

Net loss in the quarter stood at Ps.200 million, impacted by the aforementioned one-off accounting charge related to the termination of a non-derivative financial instrument of Ps.2,251 million or US$109 million, with earnings per share of negative Ps.0.17 and earnings per ADS of negative US$0.08. Adjusted net income (excluding the one-off related to the termination of a non-derivative financial instrument) reached Ps.1,559 million, a 21% increase, with adjusted earnings per share of Ps.1.34 and adjusted earnings per ADS of US$0.65.

For the full year 2021, Volaris posted a net income of Ps.2,121 million, equivalent to a 20% annual decrease, with earnings per share of Ps.1.82 and earnings per ADS of US$0.88. Excluding the one-time accounting charge associated with the change in the functional currency, adjusted net income reached Ps.3,879 million, a 47% increase compared to 2019. Adjusted earnings per share and adjusted earnings per ADS totaled Ps.3.33 and US$1.62, respectively.

EBITDAR was Ps.5,161 million, an increase of 45%, due to capacity growth, higher unit revenues, and effective cost control. EBITDAR margin was 37.0%, an increase of 0.5 percentage points.

For full year 2021, Volaris registered an EBITDAR of Ps.16,375 million, an increase of 53% compared to 2019, driven by improving our unit revenues and cost control discipline. EBITDAR margin was 36.7%, an increase of 5.9 percentage points.

Balance Sheet, Liquidity and Capital Allocation 
During the fourth quarter, Volaris generated Ps.2,587 million in cash, including the issuance of its first sustainability-linked asset backed trust notes (VOLARCB 21L). As of December 31st, cash and cash equivalents were Ps.15,255 million or US$741 million, representing 34% of the last twelve months total operating revenue. Net cash flow provided by operating activities was Ps.5,090 million, while cash outflows in investing and financing activities were Ps.1,385 million and Ps.1,812 million, respectively. Positive net foreign exchange difference was Ps.694 million. On October 13th, 2021, Volaris issued successfully its first sustainability-linked asset backed trust notes (VOLARCB 21L) for an amount of Ps.1,500 million.

For full year 2021, Volaris generated Ps.5,152 million in cash. Net cash flow provided by operating activities was Ps.15,869 million, while cash outflows in investing and financing activities were Ps.2,731 million and Ps.8,828 million, respectively. Positive net foreign exchange difference was Ps.842 million.

As of the year, net debt was Ps.40,672 million, which included Ps.6,277 million of financial debt, Ps.49,650 million of leasing liabilities, less cash and cash equivalents of Ps.15,255 million. The net debt-to-LTM EBITDAR ratio was 2.5 times, compared to 3.5 times in the same period of 2019 and 2.8 times in third quarter of 2021.

As of December 31st, 2021, Volaris and its main subsidiary have changed their functional currency from the Mexican Peso to the US Dollar. According to IAS 21 the functional currency is the currency of the primary economic environment in which the entity operates; in other words, the currency in which Volaris measures and records its transactions. As a result of the recent developments in the Company's operational environment, the way it measures its business performance, the determination of the selling fares based on US Dollar, the increase of operations in the international market, and that most of Volaris´ cost is determined and denominated in US dollars, the Company concluded that the currency that most reflects its operations is the US Dollar. The change of this new functional currency was made on a prospectively basis with no restatement of previous periods.

Volaris believes the measurement of the financial information with the new functional currency will mitigate the impact of the Mexican Peso volatility over its financial results and improves the comparability with other companies in the market.

2022 Outlook 
Volaris expects to continue with its disciplined growth strategy for the rest of the year. Assuming no significant unexpected disruptions related to COVID-19 or other macroeconomics impacts to the business, the Company expects to grow capacity (ASMs) in the mid-twenties compared to 2021. Furthermore, it expects total operating revenue in the range of US$2.6 to US$2.8 billion. Finally, the Company anticipates capex in the range of US$140 to US$145 million. This outlook assumes a FX USD/MXN of Ps.20.80 to Ps.21.10.

Fleet
During the fourth quarter, the Company incorporated seven new A320neo aircraft to its fleet. As of December 31, 2021, Volaris' fleet was composed of 101 aircraft (6 A319s, 79 A320s and 16 A321s), with an average age of 5.4 years. Volaris' fleet had an average of 187 seats per aircraft. 82% of its aircraft are sharklet-equipped and 45% are New Engine Option (NEO) models. The Company plans to end 2022 approximately with 115 aircraft.

On November 15th, 2021, Volaris signed a new purchase order with Airbus for 39 A321neo aircraft, in order to secure its growth in the second half of the decade. In addition to the acquisition of these 39 aircraft, Volaris agreed with Airbus to convert 20 aircraft in its current order contract from A320neo to A321neos.

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:
Félix Martínez / Naara Cortés Gallardo / ir@volaris.com 

Media Contact:
Gabriela Fernández / gabriela.fernandez@volaris.com

Conference call and webcast details                              

Date:

Friday, February 25th, 2022

Time:

9:00 am Mexico City (CT) / 10:00 am New York (USA) (ET)

United States dial in:

+1-844-204-8586

Mexico dial in:

+52-55-8880-8040

International dial in:

+1-412-317-6346

Participant code:

Volaris

Webcast & video presentation:

https://webcastlite.mziq.com/cover.html?webcastId=423f690b-ffe2-401e-9603-561864dcb46d

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 184 and its fleet from 4 to 102 aircraft. Volaris offers more than 500 daily flight segments on routes that connect 43 cities in Mexico and 27 cities in the United States, Central and South America with the youngest fleet 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 eleven consecutive years. For more information, please visit: www.volaris.com.

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 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 include, without limitation, statements regarding the Company's intentions and expectations regarding the delivery schedule of aircraft on order, announced new service routes and customer savings programs. 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 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. Additional information concerning these, and other factors is contained in the Company's US 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 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.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Financial and Operating Indicators
(All metrics are compared to 2019 unless otherwise noted)

Unaudited
(In Mexican pesos, except otherwise indicated)

Three months ended December 31, 2021 (US Dollars)*

Three months ended December 31, 2021

Three months ended December 31, 2019

Variance





Total operating revenues (millions)

678

13,954

9,729

43.4%



Total operating expenses (millions)

531

10,922

7,762

40.7%



EBIT (millions)

147

3,032

1,967

54.1%



EBIT margin

21.7%

21.7%

20.2%

1.5 pp



Depreciation and amortization (millions)

89

1,823

1,389

31.3%



Aircraft and engine variable lease expenses (millions)

15

306

193

58.4%



Net (loss) income (millions)

(10)

(200)

1,287

N/A



Net (loss) income margin

(1.4%)

(1.4%)

13.2%

-14.7 pp



(Loss) earnings per share:







Basic

(0.01)

(0.17)

1.27

N/A



Diluted

(0.01)

(0.17)

1.27

N/A



(Loss) earnings per ADS:







Basic

(0.08)

(1.71)

12.72

N/A



Diluted

(0.08)

(1.71)

12.72

N/A



Weighted average shares outstanding:







Basic

-

1,165,976,677

1,011,876,677

15.2%



Diluted

-

1,165,976,677

1,011,876,677

15.2%



Available seat miles (ASMs) (millions) (1)

-

8,022

6,300

27.3%



     Domestic

-

5,652

4,343

30.2%



     International

-

2,370

1,957

21.1%



Revenue passenger miles (RPMs) (millions) (1)

-

6,968

5,521

26.2%



     Domestic

-

5,076

3,888

30.6%



     International

-

1,892

1,633

15.8%



Load factor (2)

-

86.9%

87.6%

-0.8 pp



     Domestic

-

89.8%

89.5%

 0.3 pp



     International

-

79.8%

83.4%

-3.6 pp



Total operating revenue per ASM (TRASM) (cents) (1)(5)

8.5

175.6

155.0

13.3%



Total ancillary revenue per passenger (4)(5)

39.3

810

557

45.4%



Total operating revenue per passenger (5)

94.0

1,935

1,701

13.7%



Operating expenses per ASM (CASM) (cents) (1)(5)

6.6

136.8

123.5

10.8%



Operating expenses per ASM (CASM) (US cents) (1)(3)(5)

-

6.60

6.40

3.0%



CASM ex fuel (cents) (1)(5)

4.1

84.6

76.0

11.2%



CASM ex fuel (US cents) (1)(3)(5)

-

4.08

3.94

3.4%



Booked passengers (thousands) (1)

-

7,281

5,738

26.9%



Departures (1)

-

44,473

35,261

26.1%



Block hours (1)

-

111,656

89,714

24.5%



Fuel gallons consumed (millions)

-

79.0

65.2

21.1%



Average economic fuel cost per gallon (5)

2.58

53.1

45.8

15.8%



Aircraft at end of period

-

101

82

23.2%



Average aircraft utilization (block hours)

-

13.31

12.8

4.3%



Average exchange rate

-

20.75

19.28

7.6%



End of period exchange rate

-

20.58

18.85

9.2%



*Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only.
(1) Includes schedule and charter.                                                                                               (3) Dollar amounts were converted at average exchange rate of each period.
(2) Includes schedule.                                                                                                                  (4) Includes "Other passenger revenues" and "non-passenger revenues".
(5) Excludes non-derivatives financial instruments.



Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Financial and Operating Indicators
(All metrics are compared to 2020 unless otherwise noted)

Unaudited
(In Mexican pesos, except otherwise indicated)

Three months ended December 31, 2021
(US Dollars) *

Three months ended December 31, 2021

Three months ended December 31, 2020

Variance





Total operating revenues (millions)

678

13,954

8,086

72.6%



Total operating expenses (millions)

531

10,922

7,126

53.3%



EBIT (millions)

147

3,032

960

215.9%



EBIT margin

21.7%

21.7%

11.9%

9.9 pp



Depreciation and amortization (millions)

89

1,823

1,546

17.9%



Aircraft and engine variable lease expenses (millions)

15

306

507

(39.7%)



Net (loss) income (millions)

(10)

(200)

897

N/A



Net (loss) income margin

(1.4%)

(1.4%)

11.1%

(12.5 pp)



(Loss) earnings per share:







Basic

(0.01)

(0.17)

0.85

N/A



Diluted

(0.01)

(0.17)

0.85

N/A



(Loss) earnings per ADS:







Basic

(0.08)

(1.71)

8.54

N/A



Diluted

(0.08)

(1.71)

8.54

N/A



Weighted average shares outstanding:







Basic

-

1,165,976,677

1,050,401,677

11.0%



Diluted

-

1,165,976,677

1,050,401,677

11.0%



Available seat miles (ASMs) (millions) (1)

-

8,022

5,979

34.2%



     Domestic

-

5,652

4,307

31.2%



     International

-

2,370

1,673

41.7%



Revenue passenger miles (RPMs) (millions) (1)

-

6,968

4,797

45.3%



     Domestic

-

5,076

3,594

41.2%



     International

-

1,892

1,203

57.3%



Load factor (2)

-

86.9%

80.2%

6.6 pp



     Domestic

-

89.8%

83.5%

 6.4 pp



     International

-

79.8%

71.9%

7.9 pp



Total operating revenue per ASM (TRASM) (cents) (1)(5)

8.5

175.6

138.1

27.1%



Total ancillary revenue per passenger (4)(5)

39.3

810

798

1.5%



Total operating revenue per passenger (5)

94.0

1,935

1,699

13.9%



Operating expenses per ASM (CASM) (cents) (1)(5)

6.6

136.8

120.6

13.5%



Operating expenses per ASM (CASM) (US cents) (1)(3)(5)

-

6.60

5.84

12.8%



CASM ex fuel (cents) (1)(5)

4.1

84.6

85.3

(0.8%)



CASM ex fuel (US cents) (1)(3)(5)

-

4.08

4.13

(1.4%)



Booked passengers (thousands) (1)

-

7,281

4,861

49.8%



Departures (1)

-

44,473

31,652

40.5%



Block hours (1)

-

111,656

80,163

39.3%



Fuel gallons consumed (millions)

-

79.0

56.8

39.2%



Average economic fuel cost per gallon (5)

2.6

53.1

37.2

42.7%



Aircraft at end of period

-

101

86

17.4%



Average aircraft utilization (block hours)

-

13.3

11.8

13.1%



Average exchange rate

-

20.75

20.63

0.6%



End of period exchange rate

-

20.58

19.95

3.2%



*Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only.
(1) Includes schedule and charter.                                                                                               (3) Dollar amounts were converted at average exchange rate of each period.
(2) Includes schedule.                                                                                                                  (4) Includes "Other passenger revenues" and "non-passenger revenues".
(5) Excludes non-derivatives financial instruments.



Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Financial and Operating Indicators
(All metrics are compared to 2020 unless otherwise noted)

Unaudited
(In Mexican pesos, except otherwise indicated)

Twelve months ended December 31, 2021

Twelve months ended December 31, 2021

Twelve months ended December 31, 2020

Variance



(US Dollars) *



Total operating revenues (millions)

2,170

44,662

22,160

101.5%



Total operating expenses (millions)

1,778

36,596

25,413

44.0%



EBIT (millions)

392

8,066

(3,254)

N/A



EBIT margin

18.1%

18.1%

(14.7%)

32.7 pp



Depreciation and amortization (millions)

322

6,622

5,947

11.3%



Aircraft and engine rent expenses (millions)

82

1,687

1,845

(8.6%)



Net income (loss) (millions)

103

2,121

(4,294)

N/A



Net income (loss) margin

4.7%

4.7%

(19.4%)

24.1 pp



Earnings (loss) per share:







Basic

0.09

1.82

(4.20)

N/A



Diluted

0.09

1.82

(4.20)

N/A



Earnings (loss) per ADS:







Basic

0.88

18.19

(42.03)

N/A



Diluted

0.88

18.19

(42.03)

N/A



Weighted average shares outstanding:







Basic

-

1,165,976,677

1,021,560,557

14.1%



Diluted

-

1,165,976,677

1,021,560,557

14.1%



Available seat miles (ASMs) (millions) (1)

-

28,097

18,275

53.7%



     Domestic

-

20,099

13,446

49.5%



     International

-

7,997

4,829

65.6%



Revenue passenger miles (RPMs) (millions) (1)

-

23,802

14,597

63.1%



     Domestic

-

17,470

10,900

60.3%



     International

-

6,332

3,696

71.3%



Load factor (2)

-

84.7%

79.9%

4.8 pp



     Domestic

-

86.9%

81.1%

 5.9 pp



     International

-

79.2%

76.5%

 2.6 pp



Total operating revenue per ASM (TRASM) (cents) (1)(5)

7.8

160.5

123.5

30.0%



Total ancillary revenue per passenger (4)(5)

38.6

795

659

20.6%



Total operating revenue per passenger (5)

89.8

1,848

1,534

20.4%



Operating expenses per ASM (CASM) (cents) (1)(5)

6.4

130.9

141.3

(7.4%)



Operating expenses per ASM (CASM) (US cents) (1)(3)(5)

-

6.45

6.57

(1.8%)



CASM ex fuel (cents) (1)(5)

4.2

86.2

102.7

(16.1%)



CASM ex fuel (US cents) (1)(3)(5)

-

4.25

4.78

(11.1%)



Booked passengers (thousands) (1)

-

24,405

14,712

65.9%



Departures (1)

-

153,913

97,819

57.3%



Block hours (1)

-

386,752

248,952

55.4%



Fuel gallons consumed (millions)

-

273.5

176.6

54.8%



Average economic fuel cost per gallon (5)

2.2

45.9

39.9

15.0%



Aircraft at end of period

-

101

86

17.4%



Average aircraft utilization (block hours)

-

12.5

11.3

10.9%



Average exchange rate

-

20.28

21.50

(5.6%)



End of period exchange rate

-

20.58

19.95

3.2%



*Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only.
(1) Includes schedule and charter.                                                                                      (3) Dollar amounts were converted at average exchange rate of each period.
(2) Includes schedule.                                                                                                         (4) Includes "Other passenger revenues" and "non-passenger revenues".
(5) Excludes non-derivatives financial instruments.



Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Consolidated Statement of Operations
(All metrics are compared to 2020 unless otherwise noted)

Unaudited
(In millions of Mexican pesos)

Three months ended December 31, 2021
(US Dollars) *

Three months ended December 31, 2021

Three months ended December 31, 2020

Variance





Operating revenues:







 Passenger revenues

660

13,577

7,863

72.7%



   Fare revenues

398

8,195

4,382

87.0%



   Other passenger revenues

261

5,382

3,481

54.6%










 Non-passenger revenues

25

513

397

29.3%



   Other non-passenger revenues

22

444

327

35.8%



   Cargo

3

69

70

(1.5%)










Non-derivatives financial instruments

(7)

(136)

(174)

(21.7%)










Total operating revenues

678

13,954

8,086

72.6%










Other operating income

(3)

(65)

(162)

(59.8%)



Fuel expense, net (1)

201

4,137

2,027

104.1%



Landing, take-off and navigation expenses

85

1,754

1,148

52.7%



Salaries and benefits

72

1,487

983

51.2%



Depreciation of right of use assets

70

1,433

1,297

10.5%



Sales, marketing, and distribution expenses

27

549

335

63.8%



Maintenance expenses

26

537

454

18.4%



Aircraft and engine variable lease expenses

15

306

507

(39.7%)



Depreciation and amortization

19

390

249

56.9%



Other operating expenses

19

394

288

36.9%



Operating expenses

531

10,922

7,126

53.3%










Operating income

147

3,032

960

215.9%










Finance income

1

18

8

119.3%



Finance cost

(43)

(882)

(495)

78.2%



Exchange (loss) gain, net (2)

(134)

(2,768)

889

N/A



Comprehensive financing result

(176)

(3,632)

403

N/A










(Loss) income before income tax

(29)

(600)

1,362

N/A



Income tax benefit (expense)

19

400

(465)

N/A



Net (loss) income

(10)

(200)

897

N/A










* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only.
(1) 4Q 2021 and 4Q 2020 figures include a benefit from non-derivatives financial instruments by an amount of Ps.54.7 million and Ps.84.2 million, respectively.
(2) 4Q 2021 figures include termination non-derivative financial instrument by an amount of Ps.2,251 million.



 

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Consolidated Statement of Operations
(All metrics are compared to 2020 unless otherwise noted)

Unaudited

Twelve months ended December 31, 2021

Twelve months ended December 31, 2021

Twelve months ended December 31, 2020 (Audited)

Variance



(In millions of Mexican pesos)

(US Dollars) *



Operating revenues:







 Passenger revenues

2,103

43,297

21,487

101.5%



   Fare revenues

1,249

25,703

12,873

99.7%



   Other passenger revenues

855

17,594

8,613

104.3%










 Non-passenger revenues

87

1,799

1,084

65.9%



   Other non-passenger revenues

76

1,558

882

76.6%



   Cargo

12

241

202

19.5%










Non-derivatives financial instruments

(21)

(435)

(411)

5.7%










Total operating revenues

2,170

44,662

22,160

101.5%










Other operating income

(11)

(218)

(730)

(70.2%)



Fuel expense, net (1)

601

12,376

6,641

86.4%



Landing, take-off and navigation expenses

293

6,021

4,091

47.2%



Depreciation of right of use assets

265

5,463

5,049

8.2%



Salaries and benefits

236

4,857

3,453

40.6%



Sales, marketing, and distribution expenses

95

1,962

1,841

6.6%



Maintenance expenses

95

1,952

1,168

67.2%



Aircraft and engine variable lease expenses

82

1,687

1,845

(8.6%)



Other operating expenses

65

1,337

1,157

15.5%



Depreciation and amortization

56

1,159

898

29.0%



Operating expenses

1,778

36,596

25,413

44.0%










Operating income (loss)

392

8,066

(3,254)

N/A










Finance income

3

72

102

(29.5%)



Finance cost

(138)

(2,832)

(3,018)

(6.2%)



Exchange (loss) gain, net (2)

(126)

(2,591)

471

N/A



Comprehensive financing result

(260)

(5,352)

(2,446)

118.8%










Income (loss) before income tax

132

2,714

(5,700)

N/A



Income tax (expense) benefit

(29)

(594)

1,406

N/A



Net income (loss)

103

2,121

(4,294)

N/A










* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only.
(1) December YTD 2021 and December YTD 2020 figures include a benefit from non-derivatives financial instrument by an amount of Ps.182.2 million and Ps.409.2 million, respectively.
(2) December YTD 2021 figures include termination non-derivative financial instrument by an amount of Ps.2,251 million.







Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Reconciliation of total ancillary revenue per passenger
(All metrics are compared to 2020 unless otherwise noted)

The following table shows quarterly additional detail about the components of total ancillary revenue:

Unaudited

Three months ended December 31, 2021
(US Dollars) *

Three months ended December 31, 2021

Three months ended December 31, 2020

Variance



(In millions of Mexican pesos)










Other passenger revenues

261

5,382

3,481

54.6%



Non-passenger revenues

25

513

397

29.3%



Total ancillary revenues

286

5,895

3,877

52.0%










Booked passengers (thousands) (1)

-

7,281

4,861

49.8%










Total ancillary revenue per passenger

39

810

798

1.5%










* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only.                                                                         

(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
(All metrics are compared to 2020 unless otherwise noted)

The following table shows the twelve months of the year additional detail about the components of total ancillary revenue:

Unaudited

Twelve months ended December 31, 2021
(US Dollars) *

Twelve months ended December 31, 2021

Twelve months ended December 31, 2020 (Audited)

Variance



(In millions of Mexican pesos)










Other passenger revenues

855

17,594

8,613

104.3%



Non-passenger revenues

87

1,799

1,084

65.9%



Total ancillary revenues

942

19,394

9,698

100.0%










Booked passengers (thousands) (1)

-

24,405

14,712

65.9%










Total ancillary revenue per passenger

39

795

659

20.6%










* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only.                                                                         

(1) Includes schedule and charter.           



Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Consolidated Statement of Financial Position
(All metrics are compared to 2020 unless otherwise noted)

(In millions of Mexican pesos)

December 31,
2021
Unaudited
(US Dollars) *

December 31,
2021
Unaudited

December 31,
2020
Audited





Assets






Cash and cash equivalents

741

15,255

10,103



Accounts receivable, net

106

2,184

2,027



Inventories

14

296

279



Prepaid expenses and other current assets

40

823

850



Financial instruments

-

-

-



Guarantee deposits

79

1,626

1,142



Total current assets

981

20,184

14,402



Rotable spare parts, furniture and equipment, net

455

9,357

7,281



Right of use assets

1,917

39,463

34,316



Intangible assets, net

13

260

192



Financial instruments

1

29

-



Deferred income taxes

141

2,908

3,129



Guarantee deposits

455

9,373

8,425



Other assets

5

106

119



Other long- term assets

21

423

325



Total non-current assets

3,008

61,919

53,787



Total assets

3,988

82,103

68,189



Liabilities






Unearned transportation revenue

304

6,257

5,851



Accounts payable

119

2,444

2,365



Accrued liabilities

178

3,666

2,356



Lease Liabilities

284

5,842

6,484



Other taxes and fees payable

131

2,700

2,236



Income taxes payable

4

86

4



Financial instruments

-

-

10



Financial debt

197

4,053

1,559



Other liabilities

35

713

101



Total short-term liabilities

1,252

25,761

20,966



Financial debt

108

2,224

3,796



Accrued liabilities

1

30

67



Lease Liabilities

2,128

43,808

37,646



Other liabilities

167

3,436

2,668



Employee benefits

4

82

51



Deferred income taxes

11

230

200



Total long-term liabilities

2,419

49,810

44,427



Total liabilities

3,671

75,571

65,393



Equity






Capital stock

166

3,426

3,426



Treasury shares

(10)

(209)

(224)



Contributions for future capital increases

-

-

-



Legal reserve

14

291

291



Additional paid-in capital

230

4,741

4,720



Retained losses

(84)

(1,735)

(3,855)



Accumulated other comprehensive income (loss) (1)

1

18

(1,562)



Total equity

317

6,532

2,796



Total liabilities and equity

3,988

82,103

68,189









Weighted average shares outstanding


1,165,976,677

1,165,976,677



* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only.
1) As of December 31, 2021, the figures do not include the exchange rate loss of Ps. 2,251 million resulting from the termination of the non-derivative financial instrument because of the change of the functional currency. As of December 31, 2020, the figures include an exchange rate loss of Ps.1,577 million, related to non-derivative financial instrument.



Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Consolidated Statement of Cash Flows – Cash Flow Data Summary
(All metrics are compared to 2020 unless otherwise noted)

Unaudited
(In millions of Mexican pesos)

Three months ended December 31, 2021
(US Dollars) *

Three months ended December 31, 2021

Three months ended December 31, 2020











Net cash flow provided by operating activities

247

5,090

1,070



Net cash flow (used in) provided by investing activities

(67)

(1,385)

77



Net cash flow (used in) provided by financing activities **

(88)

(1,812)

1,364



Increase in cash and cash equivalents

92

1,893

2,511



Net foreign exchange differences

34

694

(609)



Cash and cash equivalents at beginning of period

615

12,668

8,202



Cash and cash equivalents at end of period

741

15,255

10,103



*Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only.
**Includes aircraft rental payments of Ps.2,556 million and Ps.1,761 million for the three months ended period December 31, 2021 and 2020, respectively.



Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Consolidated Statement of Cash Flows – Cash Flow Data Summary
(All metrics are compared to 2020 unless otherwise noted)

Unaudited

Twelve months ended December 31, 2021

 

Twelve months ended December 31, 2021

 

Twelve months ended December 31, 2020 (Audited)

(In millions of Mexican pesos)

(US Dollars) *





Net cash flow provided by operating activities

771

15,869

4,359

Net cash flow used in investing activities

(133)

(2,731)

(68)

Net cash flow used in financing activities **

(429)

(8,828)

(3,041)

Increase in cash and cash equivalents

209

4,310

1,251

Net foreign exchange differences

41

842

873

Cash and cash equivalents at beginning of year

491

10,103

7,980

Cash and cash equivalents at end of year

741

15,255

10,103

* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only.
**Includes aircraft rental payments of Ps.9,308 million and Ps.6,111 million for the twelve months ended period December 31, 2021 and 2020, respectively.


[1] The financial information, unless otherwise indicated, is presented in accordance with the International Financial Reporting Standards (IFRS).

 

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