MEXICO
CITY, April 27, 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 first quarter 2022[1].
First Quarter 2022 Highlights[2]
(All figures are reported in U.S. dollars and compared to 1Q 2021
unless otherwise noted)
Volaris reported double-digit growth in revenue and EBITDAR in
the first quarter, maintained a strong liquidity position and a
healthy balance sheet. Strong TRASM growth in the quarter was
partially offset by rising fuel prices.
- Total operating revenue of $567 million, an 80% increase. Total revenue per
available seat mile (TRASM) increased 18% to $7.0 cents.
- Operating expenses of $598
million, a 70% increase. Operating expenses per available
seat mile (CASM) increased 13% to $7.4 cents, while CASM ex-fuel decreased
8% to $4.4 cents.
- Net loss of $49
million. Loss per share $0.04
and loss per ADS of $0.42.
- EBITDAR of $97 million, a
52% increase. EBITDAR margin was 17.0%, a decrease of 3.2
percentage points.
- Cash generation of $9
million, with a cash, cash equivalents and restricted cash
position of $750 million,
representing 31% of the last twelve months total operating
revenue.
- Net debt-to-LTM EBITDAR ratio of 2.3 times, the lowest
level in Volaris' history.
"2022 started with sharply rising fuel prices and a new surge in
Covid cases. Strong demand trends remained, however, and we are
observing less and less of a disruption in demand from new Covid
cases and customers recognizing Volaris' reliability. This strong
demand allowed us to gradually raise fares to offset rising fuel
prices. Our 1Q22 results give us confidence in the overall strength
in demand of our existing markets and our ability to closely match
it with new capacity." said Enrique
Beltranena, President & Chief Executive Officer. "We
will continue on our path of a disciplined growth strategy and are
well-positioned for the summer season as VFR and leisure travelers
are eager to fly." Enrique added.
First Quarter 2022 Financial and Operations
Highlights[3]
(All figures are reported in U.S. dollars and compared to 1Q 2021
unless otherwise noted)
|
First
Quarter
|
Consolidated
Financial
Highlights
|
2022
|
2021
|
Var.
|
Total Revenue (US$
million)
|
567
|
315
|
80%
|
TRASM (US$
cents)
|
7.0
|
6.0
|
18%
|
ASMs (million,
scheduled & charter)
|
8,061
|
5,380
|
50%
|
Load Factor (scheduled,
RPMs/ASMs)
|
83.5%
|
78.1%
|
5.4 pp
|
Passengers (thousand,
scheduled & charter)
|
6,989
|
4,271
|
64%
|
Fleet (end of
period)
|
104
|
87
|
17
|
Operating Expenses
(US$ million)
|
598
|
351
|
70%
|
CASM (US$
cents)
|
7.4
|
6.6
|
13%
|
CASM excl. fuel (US$
cents)
|
4.4
|
4.8
|
(8%)
|
Operating loss
(EBIT) (US$ million)
|
(31)
|
(36)
|
(14%)
|
% EBIT
Margin
|
(5.5%)
|
(11.4%)
|
5.9 pp
|
Net loss (million)
(US$ million)
|
(49)
|
(36)
|
36%
|
% Net loss
margin
|
(8.7%)
|
(11.4%)
|
2.7 pp
|
EBITDAR (US$
million)
|
97
|
64
|
52%
|
% EBITDAR
Margin
|
17.0%
|
20.2%
|
-3.2 pp
|
Net
debt-to-EBITDAR
|
2.3x
|
11.2x
|
-8.9x
|
Total operating revenue in the quarter was
$567 million, an 80% increase, driven
by higher capacity, healthy load factors and stronger unit revenue
per passenger. Moreover, demand remained relatively strong
throughout the quarter despite the increase of Covid-19 cases
(Omicron variant) in our markets early in the quarter.
Volaris transported 7.0 million passengers in the quarter, an
increase of 64%. Domestic and international passengers increased
58% and 95%, respectively; while total capacity, in terms of
available seat miles (ASMs), increased 50% to 8.1 billion. Load
factor reached 83.5%, 5.4 pp higher than the same period of
2021.
TRASM of $7.0 cents represented a
18% increase. Average base fare was $46, an increase of 24%. Ancillary revenue per
passenger was $35, a 7% decrease.
Ancillary revenue represented 43% of total operating revenue,
compared to 51% in the same period of 2021.Total operating revenue
per passenger increased 8% to $81.
Total operating expenses in the quarter were
$598 million, a 70% increase, driven
by higher fuel cost, which soared due to geopolitical conflicts in
Eastern Europe. The average
economic fuel cost per gallon increased 64% to $3.15 per gallon in the period. CASM totaled
$7.4 cents, 13% higher when compared
to same period of 2021. CASM ex-fuel decreased 8% to $4.4 cents due to higher aircraft utilization in
the first quarter of 2022; in the same period of last year aircraft
utilization was impacted by second wave of Covid-19.
Comprehensive financing result represented a loss of
$33 million in first quarter of 2022,
compared to a loss of $16 million in
the same period of 2021. This result was impacted by higher
financial cost.
In the first quarter, the Mexican peso depreciated 1% against
the US dollar to an average of Ps.20.52 per US dollar. At the end
of the quarter, the Mexican peso stood at Ps.19.99 per US dollar, a
3% appreciation compared to the exchange rate at the end of the
fourth quarter of 2021.
Income tax benefit was $16
million, compared to the $15
million benefit posted in the first quarter of 2021.
Net loss in the quarter stood at $49 million, with loss per share of $0.04 and loss per ADS of $0.42.
EBITDAR was $97
million, an increase of 52%, driven by strong revenue
growth, although substantially higher fuel costs were a negative
factor during the quarter. EBITDAR margin was 17.0%, a decrease of
3.2 percentage points.
Balance Sheet, Liquidity and Capital
Allocation
During the first quarter, Volaris generated
$9 million in cash. As of
March 31st, cash, cash
equivalents and restricted were $750
million, representing 31% of the last twelve months total
operating revenue. Net cash flow provided by operating activities
was $196 million, while cash outflows
in investing and financing activities were $6 million and $183
million, respectively. Positive net foreign exchange
difference was $2 million.
On March 31, net debt was
$1,931 million, which included
$242 million of financial debt,
$2,439 million of leasing
liabilities, less cash, cash equivalents and restricted of
$750 million. The net debt-to-LTM
EBITDAR ratio was 2.3 times, compared to 11.2 times in the same
period of 2021 and 2.5 times in fourth quarter of 2021.
Full Year 2022 Outlook
Despite the macroeconomic
and geopolitical challenges around the globe, demand remains strong
across Volaris' route system. Accordingly, Volaris expects to
continue with its growth plans while closely monitoring demand
trends. More specifically, the Company maintains its prior guidance
and forecast full year growth in capacity (ASMs) in the
mid-twenties compared to 2021 and revises upward its total
operating revenue for 2022 in the range of $2.8 to $3.0
billion. Also, the Company expects a full year CASM ex-fuel,
to increase between 1% and 3% compared to 2021; and an EBITDAR
margin in the high twenties. The Company continues to anticipate
capex spend in the range of $140 to
$145 million. This outlook assumes a
full year average USD/MXN rate of Ps.20.50 to Ps.20.80 and an
average economic fuel price of $3.10
to $3.40 per gallon.
This guidance also assumes no significant unexpected disruptions
related to COVID-19 or other, exogenous macroeconomic or other
negative impacts to its business.
Fleet
During the first quarter, the Company
incorporated three new A320neo aircraft to its fleet. As of
March 31st, 2022, Volaris'
fleet was composed of 104 aircraft (6 A319s, 81 A320s and 17
A321s), of which 46% are New Engine Option (NEO) models. Volaris'
fleet had an average of 188 seats per aircraft and an average age
of 5.6 years. The Company plans to end 2022 approximately with 115
aircraft.
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:
|
Thursday, April
28th, 2022
|
Time:
|
10:00 am Mexico City
(CT) / 11:00 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=a1ab999b-d688-4955-88e7-b67bf46b59f7
|
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 188 and its fleet from 4 to 105 aircraft. Volaris
offers more than 500 daily flight segments on routes that connect
44 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
|
|
|
|
|
|
Unaudited
(In U.S. dollars, except otherwise indicated)
|
Three months
ended
March 31, 2022
|
Three months
ended
March 31, 2021
|
Variance
|
|
|
|
|
Total operating
revenues (millions)
|
567
|
315
|
80.0%
|
|
|
Total operating
expenses (millions)
|
598
|
351
|
70.4%
|
|
|
EBIT
(millions)
|
(31)
|
(36)
|
(13.1%)
|
|
|
EBIT margin
|
(5.5%)
|
(11.4%)
|
5.9 pp
|
|
|
Depreciation and
amortization (millions)
|
95
|
79
|
20.8%
|
|
|
Aircraft and engine
variable lease expenses (millions)
|
25
|
17
|
41.2%
|
|
|
Net loss
(millions)
|
(49)
|
(36)
|
36.2%
|
|
|
Net loss
margin
|
(8.7%)
|
(11.4%)
|
2.8 pp
|
|
|
Loss per
share:
|
|
|
|
|
|
Basic
|
(0.04)
|
(0.03)
|
36.2%
|
|
|
Diluted
|
(0.04)
|
(0.03)
|
36.2%
|
|
|
Loss per
ADS:
|
|
|
|
|
|
Basic
|
(0.42)
|
(0.31)
|
36.2%
|
|
|
Diluted
|
(0.42)
|
(0.31)
|
36.2%
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
Basic
|
1,165,976,677
|
1,165,976,677
|
0.0%
|
|
|
Diluted
|
1,165,976,677
|
1,165,976,677
|
0.0%
|
|
|
Available seat miles
(ASMs) (millions) (1)
|
8,061
|
5,380
|
49.8%
|
|
|
Domestic
|
5,682
|
4,038
|
40.7%
|
|
|
International
|
2,379
|
1,342
|
77.3%
|
|
|
Revenue passenger miles
(RPMs) (millions) (1)
|
6,728
|
4,202
|
60.1%
|
|
|
Domestic
|
4,895
|
3,256
|
50.4%
|
|
|
International
|
1,833
|
946
|
93.7%
|
|
|
Load factor
(2)
|
83.5%
|
78.1%
|
5.4 pp
|
|
|
Domestic
|
86.1%
|
80.6%
|
5.5 pp
|
|
|
International
|
77.0%
|
70.5%
|
6.5 pp
|
|
|
Total operating revenue
per ASM (TRASM) (cents) (1)(4)
|
7.0
|
6.0
|
18.0%
|
|
|
Total ancillary revenue
per passenger (3)(4)
|
35
|
38
|
(7.3%)
|
|
|
Total operating revenue
per passenger (4)
|
81
|
75
|
8.1%
|
|
|
Operating expenses per
ASM (CASM) (cents) (1)(4)
|
7.42
|
6.59
|
12.7%
|
|
|
CASM ex fuel
(cents) (1)(4)
|
4.40
|
4.77
|
(7.7%)
|
|
|
Booked passengers
(thousands) (1)
|
6,989
|
4,271
|
63.6%
|
|
|
Departures
(1)
|
44,938
|
28,962
|
55.2%
|
|
|
Block hours
(1)
|
113,413
|
73,171
|
55.0%
|
|
|
Fuel gallons consumed
(millions)
|
77.22
|
50.80
|
52.0%
|
|
|
Average economic fuel
cost per gallon (4)
|
3.15
|
1.93
|
63.7%
|
|
|
Aircraft at end of
period
|
104
|
87
|
19.5%
|
|
|
Average aircraft
utilization (block hours)
|
13.26
|
10.59
|
25.2%
|
|
|
Average exchange
rate
|
0.05
|
0.05
|
(1.0%)
|
|
|
End of period exchange
rate
|
0.05
|
0.05
|
3.1%
|
|
|
(1) Includes schedule
and
charter.
(3) Includes "Other passenger revenues" and "non-passenger
revenues".
(2) Includes
schedule.
(4) Excludes non-derivative financial instruments.
|
|
|
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
March 31, 2022
|
Three months
ended
March 31, 2021
|
Variance
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
Passenger
revenues
|
542
|
302
|
79.6%
|
|
|
Fare
revenues
|
322
|
159
|
102.4%
|
|
|
Other
passenger revenues
|
219
|
142
|
54.1%
|
|
|
|
|
|
|
|
|
Non-passenger
revenues
|
25
|
19
|
33.2%
|
|
|
Other
non-passenger revenues
|
22
|
16
|
36.0%
|
|
|
Cargo
|
3
|
3
|
16.7%
|
|
|
|
|
|
|
|
|
Non-derivatives
financial instruments
|
0
|
(6)
|
(100.0%)
|
|
|
|
|
|
|
|
|
Total operating
revenues
|
567
|
315
|
80.0%
|
|
|
|
|
|
|
|
|
Other operating
income
|
(3)
|
(3)
|
(14.4%)
|
|
|
Fuel expense, net
(1)
|
243
|
95
|
157.4%
|
|
|
Landing, take-off, and
navigation expenses
|
92
|
60
|
54.2%
|
|
|
Depreciation of right
of use assets
|
75
|
64
|
16.6%
|
|
|
Salaries and
benefits
|
67
|
48
|
40.7%
|
|
|
Aircraft and engine
rent expense
|
33
|
23
|
42.6%
|
|
|
Maintenance
expenses
|
26
|
21
|
23.5%
|
|
|
Sales, marketing, and
distribution expenses
|
25
|
17
|
41.2%
|
|
|
Depreciation and
amortization
|
20
|
12
|
63.9%
|
|
|
Other operating
expenses
|
20
|
14
|
39.8%
|
|
|
Operating
expenses
|
598
|
351
|
70.4%
|
|
|
|
|
|
|
|
|
Operating
loss
|
(31)
|
(36)
|
(13.1%)
|
|
|
|
|
|
|
|
|
Finance
income
|
1
|
1
|
15.7%
|
|
|
Finance cost
|
(47)
|
(28)
|
69.1%
|
|
|
Exchange gain,
net
|
13
|
12
|
11.4%
|
|
|
Comprehensive
financing result
|
(33)
|
(16)
|
115.1%
|
|
|
|
|
|
|
|
|
Loss before income
tax
|
(65)
|
(52)
|
25.5%
|
|
|
Income tax
benefit
|
16
|
15
|
0.4%
|
|
|
Net
loss
|
(49)
|
(36)
|
36.2%
|
|
|
|
|
|
|
|
|
(1) Q 2021 figures
include a benefit from non-derivative financial instruments by an
amount of USD$3 million.
|
|
|
Controladora Vuela
Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
|
|
Reconciliation of total
ancillary revenue per passenger
|
|
The following table
shows quarterly additional detail about the components of total
ancillary revenue:
|
|
Unaudited
|
Three months
ended
March 31, 2022
|
Three months
ended
March 31, 2021
|
Variance
|
(In millions of U.S.
dollars)
|
|
|
|
|
Other passenger
revenues
|
219
|
142
|
54.1%
|
Non-passenger
revenues
|
25
|
19
|
33.2%
|
Total ancillary
revenues
|
245
|
161
|
51.6%
|
|
|
|
|
Booked passengers
(thousands) (1)
|
6,989
|
4,271
|
63.6%
|
|
|
|
|
Total ancillary
revenue per passenger
|
35
|
38
|
(7.3%)
|
|
|
|
|
(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)
|
March 31,
2022
Unaudited
|
December 31,
2021*
|
|
|
|
|
Assets
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
750
|
741
|
|
|
Accounts receivable,
net
|
168
|
106
|
|
|
Inventories
|
13
|
14
|
|
|
Prepaid expenses and
other current assets
|
45
|
38
|
|
|
Guarantee
deposits
|
64
|
79
|
|
|
Total current
assets
|
1,039
|
979
|
|
|
Rotable spare parts,
furniture and equipment, net
|
436
|
455
|
|
|
Right of use
assets
|
1943
|
1917
|
|
|
Intangible assets,
net
|
12
|
13
|
|
|
Derivatives Financial
Instruments
|
2
|
1
|
|
|
Deferred income
taxes
|
160
|
141
|
|
|
Guarantee
deposits
|
449
|
455
|
|
|
Other long- term
assets
|
25
|
23
|
|
|
Total non-current
assets
|
3,026
|
3,006
|
|
|
Total
assets
|
4,065
|
3,985
|
|
|
Liabilities
|
|
|
|
|
Unearned transportation
revenue
|
373
|
304
|
|
|
Accounts
payable
|
73
|
119
|
|
|
Accrued
liabilities
|
223
|
178
|
|
|
Lease
Liabilities
|
288
|
284
|
|
|
Other taxes and fees
payable
|
201
|
131
|
|
|
Income taxes
payable
|
4
|
4
|
|
|
Financial
debt
|
137
|
197
|
|
|
Other
liabilities
|
31
|
35
|
|
|
Total short-term
liabilities
|
1,329
|
1,252
|
|
|
Financial
debt
|
105
|
108
|
|
|
Accrued
liabilities
|
0
|
1
|
|
|
Lease
Liabilities
|
2,151
|
2,128
|
|
|
Other
liabilities
|
200
|
167
|
|
|
Employee
benefits
|
4
|
4
|
|
|
Deferred income
taxes
|
16
|
11
|
|
|
Total long-term
liabilities
|
2,477
|
2,420
|
|
|
Total
liabilities
|
3,805
|
3,671
|
|
|
Equity
|
|
|
|
|
Capital
stock
|
248
|
248
|
|
|
Treasury
shares
|
(9)
|
(9)
|
|
|
Contributions for
future capital increases
|
-
|
-
|
|
|
Legal
reserve
|
17
|
17
|
|
|
Additional paid-in
capital
|
282
|
281
|
|
|
Accumulated
deficit
|
(125)
|
(76)
|
|
|
Accumulated other
comprehensive income loss
|
(155)
|
(149)
|
|
|
Total
equity
|
259
|
313
|
|
|
Total liabilities
and equity
|
4,065
|
3,985
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
1,165,976,677
|
1,165,976,677
|
|
|
(*) Unaudited
USD figures.
|
|
|
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 March 31,
2022
|
Three months
ended March 31,
2021
|
|
|
|
|
Net cash flow provided
by operating activities
|
196
|
37
|
|
|
|
Net cash flow used in
investing activities
|
(6)
|
(9)
|
|
|
|
Net cash flow used in
financing activities (1)
|
(183)
|
(106)
|
|
|
|
Increase (decrease)
in cash, cash equivalents and restricted cash
|
7
|
(79)
|
|
|
|
Net foreign exchange
differences
|
2
|
11
|
|
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
741
|
490
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
750
|
423
|
|
|
|
(1)
Includes aircraft rental payments of
USD$112 million and USD$104 million for the three months ended
period March 31, 2022, and 2021, respectively.
|
|
|
|
[1] The financial information, unless otherwise indicated, is
presented in accordance with the International Financial Reporting
Standards (IFRS).
[2] As of January 1, 2022, all
figures are reported in U.S. dollars.
[3] As of January 1, 2022, all
figures are reported in U.S. dollars.
View original
content:https://www.prnewswire.com/news-releases/volaris-reports-financial-results-for-the-first-quarter-2022-301534814.html
SOURCE Volaris