MEXICO
CITY, Oct. 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, Central and South
America, today announces its financial results for the third
quarter 2022[1].
Third Quarter 2022 Highlights[2]
(All figures are reported in U.S. dollars and compared to 3Q
2021 unless otherwise noted)
Volaris reported double-digit growth in revenue, maintained CASM
ex-fuel at industry-leading levels, and finished the quarter with a
healthy balance sheet. Volaris will continue to take advantage of
its flexible network strategy and stimulate demand through its
resilient ULCC model.
- Total operating revenue of $769 million, a 20% increase. Total revenue per
available seat mile (TRASM) decreased 2.4% to $8.2 cents.
- Total operating expenses of $734 million, a 52% increase. Total operating
expenses per available seat mile (CASM) increased 24% to
$7.85 cents, while CASM
ex-fuel decreased 0.5% to $4.07
cents. Average economic fuel cost increased 72.2% to
$3.96 per gallon.
- Net income of $40 million.
Earnings per share of $0.03 and
earnings per ADS of $0.30.
- EBITDAR of $175 million, a
33% decrease. EBITDAR margin was 22.8%, a decrease of 18.1
percentage points.
- Cash, cash equivalents and restricted cash
position totaled $750
million, representing 28% of the last twelve months' total
operating revenue.
- Net debt-to-LTM EBITDAR ratio of 3.4 times.
"We have consistently anticipated strong demand in our visiting
friends-and-relatives and leisure markets - markets which show no
signs of a slowdown. ASMs grew by 22% for the third quarter
compared to 2021 and by 48% compared to 2019. Our strategically
planned growth has been both consistent and profitable.
While typically we see load factor peak in July and reductions
towards the end of Summer, in this year our load factors increased
every month in the third quarter, from 84.7% in July, to 84.9% in
August, and reached an all-time monthly record high of 87.4% in
September. Forward bookings are solid, and we expect to maintain a
strong load factor for the remainder of the year, while CASM
ex-fuel for the third quarter was under control despite
inflationary pressures" said Enrique
Beltranena, Chief Executive Officer.
Third Quarter 2022 Financial and Operations
Highlights[3]
(All figures are reported in U.S.
dollars and compared to 3Q 2021 unless otherwise noted)
|
Three months ended
September 30,
|
Consolidated
Financial
Highlights
|
2022
|
2021
|
Var.
|
Total operating
revenue (millions)
|
769
|
640
|
20 %
|
TRASM
(cents)
|
8.2
|
8.4
|
(2.4 %)
|
ASMs (million,
scheduled & charter)
|
9,355
|
7,667
|
22 %
|
Load Factor (scheduled,
RPMs/ASMs)
|
85.6 %
|
85.4 %
|
0.2 pp
|
Passengers (thousand,
scheduled & charter)
|
8,125
|
6,650
|
22.2 %
|
Fleet (end of
period)
|
113
|
94
|
19
|
Total operating
expenses (millions)
|
734
|
484
|
52 %
|
CASM (cents)
|
7.85
|
6.33
|
24 %
|
CASM ex fuel
(cents)
|
4.07
|
4.09
|
(0.5 %)
|
Adjusted CASM ex fuel
(cents) (1) (2)
|
3.78
|
3.96
|
(4.5 %)
|
Operating income
(EBIT) (millions)
|
35
|
156
|
(78 %)
|
% EBIT
Margin
|
4.6 %
|
24.4 %
|
(19.8 pp)
|
Net income
(millions)
|
40
|
76
|
(47 %)
|
% Net income
margin
|
5.2 %
|
11.9 %
|
(6.7 pp)
|
EBITDAR
(millions)
|
175
|
262
|
(33 %)
|
% EBITDAR
Margin
|
22.8 %
|
40.9 %
|
(18.1 pp)
|
Net
debt-to-EBITDAR
|
3.4x
|
2.8x
|
0.6x
|
*Note: Figures are rounded for convenience purposes. Further
detail found in financial & operating indicators.
(1) Excludes fuel expense, redelivery expense and sale and
lease-back gains.
(2) Reconciliation of CASM to Adjusted CASM ex fuel:
|
Three months ended
September 30,
|
Reconciliation
of CASM
|
2022
|
2021
|
Var.
|
CASM
(cents)
|
7.85
|
6.33
|
24 %
|
- Fuel expense,
net
|
3.78
|
2.24
|
69 %
|
CASM ex
fuel
|
4.07
|
4.09
|
(0.5 %)
|
-
Redelivery expenses
|
0.31
|
0.16
|
94 %
|
-
Sale and lease back gains
|
(0.02)
|
(0.03)
|
(33 %)
|
Adjusted CASM ex
fuel
|
3.78
|
3.96
|
(4.5 %)
|
Total operating revenue in the quarter was
$769 million, a 20% increase, driven
by higher capacity, strong load factors, and seasonality. Moreover,
demand has remained strong throughout the quarter with healthy
booking curves notwithstanding certain headwinds (high inflation,
economic and political uncertainty) occurring in the markets where
Volaris operates.
Volaris transported 8.1 million passengers in the quarter, an
increase of 22.2%. Domestic and international passengers increased
22.7% and 20.2%, respectively; total capacity, in terms of
available seat miles (ASMs), increased 22% to 9.4 billion. Load
factor reached 85.6%, 0.2 percentage points higher than the
same period in 2021.
TRASM decreased 2.4% to $8.2 cents
in the quarter. Average base fare was $56, a decrease of 1.8%. Ancillary revenue per
passenger was $39, a 2.5% decrease.
Ancillary revenue represented 41% of total operating revenue, the
same level as third quarter 2021. Total operating revenue per
passenger decreased 2.1% to $95.
Total operating expenses in the quarter were
$734 million, a 52% increase, driven
by higher fuel costs and major maintenance. The average economic
fuel cost increased 72.2% to $3.96
per gallon in the period. CASM totaled $7.85
cents, 24% higher when compared to same period of 2021. CASM
ex-fuel decreased 0.5% to $4.07 cents
due to Volaris' disciplined cost control and increased utilization
per aircraft. Adjusted CASM ex-fuel decreased 4.5% to $3.78 cents.
Comprehensive financing result represented a loss of
$44 million in the third quarter of
2022, compared to a loss of $48
million in the same period of 2021. This result was impacted
by higher interest rates.
In the third quarter, the average exchange rate was Ps.20.24 per
US dollar, a 1.1% and 1.0% depreciation compared to the third
quarter 2021 and second quarter of 2022, respectively. At the end
of the quarter, the exchange rate stood at Ps.20.31 per US
dollar.
Income tax benefit was $49
million, compared to the $32
million expenses posted in the third quarter of 2021.
Net income in the quarter was $40
million, with earnings per share of $0.03 and earnings per ADS of $0.30. In the same period of 2021. In the same
period of 2021. Net income was $76
million with earnings per share of $0.06 and earnings per ADS of $0.60.
EBITDAR was $175
million, a decrease of 33%, negatively impacted by higher
fuel and landing, take-offs, and navigation expenses. EBITDAR
margin was 22.8%, a decrease of 18.1 percentage points.
Balance Sheet, Liquidity and Capital Allocation
As of September 30th,
2022, Volaris required $9 million of
cash for the third quarter, closing with $750 million in cash and cash equivalents,
representing 28% of the last twelve months total operating revenue.
Net cash flow provided by operating activities was $88 million, while cash outflows in investing and
financing activities were $51 million
and $46 million respectively.
Positive net foreign exchange remained unchanged.
On September 30th,
2022, net debt was $2,151 million,
which included $242 million of
financial debt, $2,659 million of
leasing liabilities, and less cash, cash equivalents and restricted
position of $750 million. The net
debt-to-LTM EBITDAR ratio was 3.4 times, compared to 2.9 times in
the second quarter 2022.
Full Year 2022 Outlook
The Company expects to continue with its growth plans despite
the global macroeconomic and geopolitical challenges faced
throughout the year, while servicing the robust demand seen within
its current network.
Volaris' full year 2022 guidance. Of note, the Company
expects:
- ASM growth of 25% compared to 2021.
- Operating revenue in the range of $2.8 to $3.0
billion.
- CASM ex-fuel increase of approximately 1% compared to
2021.
- EBITDAR margin in the low twenties.
- And finally, CAPEX of $145
million.
This outlook assumes a full year average USD/MXN rate between
Ps.20.25 to Ps.20.30 and an average economic fuel price between
$3.85 to $3.90 per gallon; it also assumes no significant
unexpected disruptions related to COVID-19, macroeconomic factors,
or other negative impacts on its business. The Company's Full Year
2022 Outlook is based on a number of assumptions, including the
foregoing, that are subject to change and may be outside the
control of the Company. If actual results vary from these
assumptions, the Company's expectations may change. There can be no
assurances that Volaris will achieve these results.
Fleet
During the third quarter, the Company redelivered one A319ceo in
September and incorporated one new A320neo to its fleet. As of
September 30th, 2022,
Volaris' fleet was composed of 113 aircraft (5 A319s, 87 A320s and
21 A321s), of which 51% are New Engine Option (NEO) models.
Volaris' fleet had an average of 190 seats per aircraft and an
average age of 5.5 years. The Company plans to end 2022 with
approximately 116 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:
Ricardo Martínez /
ir@volaris.com
Media Contact:
Gabriela Fernández /
gabriela.fernandez@volaris.com
Conference call and webcast
details
Date:
|
Tuesday, October
25th, 2022
|
Time:
|
8:00 am Mexico City
(CT) / 9:00 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=5a3163ba-e4b8-4978-8e6e-99bfd160633b
|
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 196 and its fleet from 4 to 114 aircraft. Volaris
offers more than 500 daily flight segments on routes that connect
43 cities in Mexico and 28 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 thirteen 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 full year
outlook and intentions and expectations regarding the delivery
schedule of aircraft on order, amount of aircrafts at year end,
amount of forward bookings during the holiday season, ability to
maintain the load factor, 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.
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 and Net debt-to-LTM EBITDAR. 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,
redelivery expense and sale and lease back gains. We define EBITDAR
as earnings before interest, income tax, depreciation and
amortization, depreciation of right of use assents and aircraft and
engine variable lease expenses. We define Net debt-to-LTM EBITDAR
as Net debt divided by LTM EBITDAR.
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 in 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.
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 September
30, 2022
|
Three months
ended September
30, 2021
|
Variance
|
|
|
|
|
Total operating
revenues (millions)
|
769
|
640
|
20.2 %
|
|
|
Total operating
expenses (millions)
|
734
|
484
|
51.7 %
|
|
|
EBIT
(millions)
|
35
|
156
|
(77.6 %)
|
|
|
EBIT margin
|
4.6 %
|
24.4 %
|
(19.8 pp)
|
|
|
Depreciation and
amortization (millions)
|
107
|
84
|
27.4 %
|
|
|
Aircraft and engine
variable lease expenses (millions)
|
32
|
22
|
45.5 %
|
|
|
Net income
(millions)
|
40
|
76
|
(47.4 %)
|
|
|
Net income
margin
|
5.2 %
|
11.9 %
|
(6.7 pp)
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic
|
0.03
|
0.06
|
(50.0 %)
|
|
|
Diluted
|
0.03
|
0.06
|
(50.0 %)
|
|
|
Earnings per
ADS:
|
|
|
|
|
|
Basic
|
0.30
|
0.65
|
(53.8 %)
|
|
|
Diluted
|
0.30
|
0.65
|
(53.8 %)
|
|
|
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)
|
9,355
|
7,667
|
22.0 %
|
|
|
Domestic
|
6,507
|
5,397
|
20.6 %
|
|
|
International
|
2,848
|
2,270
|
25.5 %
|
|
|
Revenue passenger miles
(RPMs) (millions) (1)
|
8,007
|
6,551
|
22.2 %
|
|
|
Domestic
|
5,708
|
4,714
|
21.1 %
|
|
|
International
|
2,299
|
1,837
|
25.1 %
|
|
|
Load factor
(2)
|
85.6 %
|
85.4 %
|
0.2 pp
|
|
|
Domestic
|
87.7 %
|
87.3 %
|
0.4 pp
|
|
|
International
|
80.8 %
|
80.9 %
|
(0.1 pp)
|
|
|
Total operating revenue
per ASM (TRASM) (cents) (1)(4)
|
8.2
|
8.4
|
(2.4 %)
|
|
|
Total ancillary revenue
per passenger (3)(4)
|
39
|
40
|
(2.5 %)
|
|
|
Total operating revenue
per passenger (4)
|
95
|
97
|
(2.1 %)
|
|
|
Operating expenses per
ASM (CASM) (cents) (1)(4)
|
7.85
|
6.33
|
24.0 %
|
|
|
CASM ex fuel (cents)
(1)(4)
|
4.07
|
4.09
|
(0.5 %)
|
|
|
Adjusted CASM ex fuel
(cents) (1)(4)(6)
|
3.78
|
3.96
|
(4.5 %)
|
|
|
Booked passengers
(thousands) (1)
|
8,125
|
6,650
|
22.2 %
|
|
|
Departures
(1)
|
50,586
|
41,820
|
21.0 %
|
|
|
Block hours
(1)
|
130,323
|
105,202
|
23.9 %
|
|
|
Fuel gallons consumed
(millions)
|
89.04
|
74.67
|
19.2 %
|
|
|
Average economic fuel
cost per gallon (4)(5)
|
3.96
|
2.30
|
72.2 %
|
|
|
Aircraft at end of
period
|
113
|
94
|
19
|
|
|
Average aircraft
utilization (block hours)
|
13.35
|
13.00
|
2.7 %
|
|
|
Average exchange
rate
|
20.24
|
20.01
|
1.1 %
|
|
|
End of period exchange
rate
|
20.31
|
20.31
|
0.0 %
|
|
|
(1) Includes schedule
and
charter.
(3) Includes "Other passenger revenues" and "Non-passenger
revenues".
(2) Includes
schedule.
(4) Excludes non-derivative financial instruments.
(5) Excludes Non-creditable
VAT.
(6)
Excludes fuel expense, redelivery expense and sale and lease-back
gains.
|
|
|
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)
|
Nine months
ended September
30, 2022
|
Nine months
ended September
30, 2021
|
Variance
|
|
|
|
|
Total operating
revenues (millions)
|
2,027
|
1,529
|
32.6 %
|
|
|
Total operating
expenses (millions)
|
2,043
|
1,277
|
60.0 %
|
|
|
EBIT
(millions)
|
(16)
|
252
|
N/A
|
|
|
EBIT margin
|
(0.8 %)
|
16.5 %
|
(17.3 pp)
|
|
|
Depreciation and
amortization (millions)
|
305
|
238
|
28.2 %
|
|
|
Aircraft and engine
rent expenses (millions)
|
90
|
69
|
30.4 %
|
|
|
Net (loss) income
(millions)
|
(58)
|
116
|
N/A
|
|
|
Net (loss) income
margin
|
(2.9 %)
|
7.6 %
|
(10.5 pp)
|
|
|
(Loss) earnings per
share:
|
|
|
|
|
|
Basic
|
(0.05)
|
0.10
|
N/A
|
|
|
Diluted
|
(0.05)
|
0.10
|
N/A
|
|
|
(Loss) earnings per
ADS:
|
|
|
|
|
|
Basic
|
(0.50)
|
1.00
|
N/A
|
|
|
Diluted
|
(0.50)
|
1.00
|
N/A
|
|
|
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)
|
25,777
|
20,074
|
28.4 %
|
|
|
Domestic
|
18,033
|
14,447
|
24.8 %
|
|
|
International
|
7,744
|
5,627
|
37.6 %
|
|
|
Revenue passenger miles
(RPMs) (millions) (1)
|
21,891
|
16,835
|
30.0 %
|
|
|
Domestic
|
15,792
|
12,395
|
27.4 %
|
|
|
International
|
6,099
|
4,440
|
37.4 %
|
|
|
Load factor
(2)
|
84.9 %
|
83.9 %
|
1.0 pp
|
|
|
Domestic
|
87.6 %
|
85.8 %
|
1.8 pp
|
|
|
International
|
78.8 %
|
78.9 %
|
(0.1 pp)
|
|
|
Total operating revenue
per ASM (TRASM) (cents) (1)(4)
|
7.9
|
7.7
|
2.6 %
|
|
|
Total ancillary revenue
per passenger (3)(4)
|
37
|
39
|
(5.1 %)
|
|
|
Total operating revenue
per passenger (4)
|
90
|
90
|
0.0 %
|
|
|
Operating expenses per
ASM (CASM) (cents) (1)(4)
|
7.93
|
6.39
|
24.1 %
|
|
|
CASM ex fuel (cents)
(1)(4)
|
4.22
|
4.32
|
(2.3 %)
|
|
|
Adjusted CASM ex fuel
(cents) (1)(4)(6)
|
4.03
|
4.16
|
(3.1 %)
|
|
|
Booked passengers
(thousands) (1)
|
22,576
|
17,124
|
31.8 %
|
|
|
Departures
(1)
|
142,100
|
109,440
|
29.8 %
|
|
|
Block hours
(1)
|
362,624
|
275,096
|
31.8 %
|
|
|
Fuel gallons consumed
(millions)
|
248.17
|
194.53
|
27.6 %
|
|
|
Average economic fuel
cost per gallon (4)(5)
|
3.83
|
2.14
|
79.0 %
|
|
|
Aircraft at end of
period
|
113
|
94
|
19
|
|
|
Average aircraft
utilization (block hours)
|
13.28
|
12.24
|
8.5 %
|
|
|
Average exchange
rate
|
20.27
|
20.13
|
0.7 %
|
|
|
End of period exchange
rate
|
20.31
|
20.31
|
0.0 %
|
|
|
(1) Includes schedule
and
charter.
(3) Includes "Other passenger revenues" and
"non-passenger revenues".
(2) Includes
schedule.
(4) Excludes non-derivative financial instruments.
(5) Excludes Non-creditable
VAT.
(6) Excludes fuel expense,
redelivery expense and sale and lease-back gains.
|
|
|
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
Consolidated Statement of Operations
Unaudited
(In million of U.S. dollars)
|
Three months
ended September
30, 2022
|
Three months
ended September
30, 2021
|
Variance
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
Passenger
revenues
|
742
|
622
|
19.3 %
|
|
|
Fare
revenues
|
453
|
377
|
20.2 %
|
|
|
Other
passenger revenues
|
289
|
245
|
18.0 %
|
|
|
|
|
|
|
|
|
Non-passenger
revenues
|
27
|
22
|
22.7 %
|
|
|
Other
non-passenger revenues
|
24
|
19
|
26.3 %
|
|
|
Cargo
|
3
|
3
|
0.0 %
|
|
|
|
|
|
|
|
|
Non-derivatives
financial instruments
|
-
|
(4)
|
(100.0 %)
|
|
|
|
|
|
|
|
|
Total operating
revenues
|
769
|
640
|
20.2 %
|
|
|
|
|
|
|
|
|
Other operating
income
|
(2)
|
(2)
|
0.0 %
|
|
|
Fuel expense, net
(1)
|
354
|
170
|
108.2 %
|
|
|
Landing, take-off, and
navigation expenses
|
94
|
76
|
23.7 %
|
|
|
Depreciation of right
of use assets
|
82
|
70
|
17.1 %
|
|
|
Salaries and
benefits
|
72
|
62
|
16.1 %
|
|
|
Aircraft and engine
variable lease expenses
|
32
|
22
|
45.5 %
|
|
|
Sales, marketing, and
distribution expenses
|
29
|
29
|
0.0 %
|
|
|
Maintenance
expenses
|
24
|
25
|
(4.0 %)
|
|
|
Other operating
expenses
|
24
|
18
|
33.3 %
|
|
|
Depreciation and
amortization
|
25
|
14
|
78.6 %
|
|
|
Operating
expenses
|
734
|
484
|
51.7 %
|
|
|
|
|
|
|
|
|
Operating
income
|
35
|
156
|
(77.6 %)
|
|
|
|
|
|
|
|
|
Finance
income
|
4
|
1
|
300.0 %
|
|
|
Finance cost
|
(46)
|
(37)
|
24.3 %
|
|
|
Exchange loss,
net
|
(2)
|
(12)
|
(83.3 %)
|
|
|
Comprehensive
financing result
|
(44)
|
(48)
|
(8.3 %)
|
|
|
|
|
|
|
|
|
(Loss) income before
income tax
|
(9)
|
108
|
N/A
|
|
|
Income tax benefit
(expense)
|
49
|
(32)
|
N/A
|
|
|
Net
income
|
40
|
76
|
(47.4 %)
|
|
|
|
|
|
|
|
|
(1) 3Q 2021 figures
include a benefit from non-derivatives financial instruments by an
amount of $1 million.
|
|
|
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
Consolidated Statement of Operations
Unaudited
|
Nine months
ended September
30, 2022
|
Nine months
ended September
30, 2021
|
Variance
|
(In million of U.S.
dollars)
|
Operating
revenues:
|
|
|
|
Passenger
revenues
|
1,947
|
1,480
|
31.6 %
|
Fare
revenues
|
1,191
|
872
|
36.6 %
|
Other
passenger revenues
|
756
|
608
|
24.3 %
|
|
|
|
|
Non-passenger
revenues
|
80
|
64
|
25.0 %
|
Other
non-passenger revenues
|
69
|
55
|
25.5 %
|
Cargo
|
11
|
9
|
22.2 %
|
|
|
|
|
Non-derivatives
financial instruments
|
-
|
(15)
|
(100.0 %)
|
|
|
|
|
Total operating
revenues
|
2,027
|
1,529
|
32.6 %
|
|
|
|
|
Other operating
income
|
(18)
|
(8)
|
125.0 %
|
Fuel expense, net
(1)
|
957
|
410
|
133.4 %
|
Landing, take-off, and
navigation expenses
|
277
|
212
|
30.7 %
|
Depreciation of right
of use assets
|
237
|
200
|
18.5 %
|
Salaries and
benefits
|
204
|
168
|
21.4 %
|
Aircraft and engine
variable lease expenses
|
90
|
69
|
30.4 %
|
Sales, marketing, and
distribution expenses
|
82
|
70
|
17.1 %
|
Maintenance
expenses
|
75
|
70
|
7.1 %
|
Other operating
expenses
|
71
|
48
|
47.9 %
|
Depreciation and
amortization
|
68
|
38
|
78.9 %
|
Operating
expenses
|
2,043
|
1,277
|
60.0 %
|
|
|
|
|
Operating (loss)
income
|
(16)
|
252
|
N/A
|
|
|
|
|
Finance
income
|
6
|
3
|
100.0 %
|
Finance cost
|
(137)
|
(97)
|
41.2 %
|
Exchange (loss) gain,
net
|
(7)
|
8
|
N/A
|
Comprehensive
financing result
|
(138)
|
(86)
|
60.5 %
|
|
|
|
|
(Loss) income before
income tax
|
(154)
|
166
|
N/A
|
Income tax benefit
(expense)
|
96
|
(50)
|
N/A
|
Net (loss)
income
|
(58)
|
116
|
N/A
|
|
|
|
|
(1) September YTD 2021
figures include a benefit from non-derivative financial instruments
by an amount of $6 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 September
30, 2022
|
Three months
ended September
30, 2021
|
Variance
|
(In million of U.S.
dollars)
|
|
|
|
|
Other passenger
revenues
|
289
|
245
|
18.0 %
|
Non-passenger
revenues
|
24
|
19
|
26.3 %
|
Total ancillary
revenues
|
313
|
264
|
18.6 %
|
|
|
|
|
Booked passengers
(thousands) (1)
|
8,125
|
6,650
|
22.2 %
|
|
|
|
|
Total ancillary
revenue per passenger
|
39
|
40
|
(2.5 %)
|
|
|
|
|
(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 shows the nine months of the year additional
detail about the components of total ancillary revenue:
Unaudited
|
Nine months
ended September
30, 2022
|
Nine months
ended September
30, 2021
|
Variance
(%)
|
(In million of U.S.
dollars)
|
|
|
|
|
Other passenger
revenues
|
756
|
608
|
24.3 %
|
Non-passenger
revenues
|
69
|
55
|
25.5 %
|
Total ancillary
revenues
|
825
|
663
|
24.4 %
|
|
|
|
|
Booked passengers
(thousands) (1)
|
22,576
|
17,124
|
31.8 %
|
|
|
|
|
Total ancillary
revenue per passenger
|
37
|
39
|
(5.1 %)
|
|
|
|
|
(1) Includes schedule
and charter.
|
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
Consolidated Statement of Financial
Position
(In million of U.S.
dollars)
|
September 30,
2022
Unaudited
|
December 31,
2021 *
|
|
|
|
|
Assets
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
750
|
741
|
|
|
Accounts receivable,
net
|
203
|
106
|
|
|
Inventories
|
15
|
14
|
|
|
Prepaid expenses and
other current assets
|
41
|
38
|
|
|
Guarantee
deposits
|
60
|
79
|
|
|
Total current
assets
|
1,069
|
978
|
|
|
Rotable spare parts,
furniture and equipment, net
|
434
|
455
|
|
|
Right of use
assets
|
2,137
|
1,917
|
|
|
Intangible assets,
net
|
11
|
13
|
|
|
Derivatives Financial
Instruments
|
2
|
1
|
|
|
Deferred income
taxes
|
248
|
141
|
|
|
Guarantee
deposits
|
480
|
455
|
|
|
Other long- term
assets
|
34
|
23
|
|
|
Total non-current
assets
|
3,346
|
3,005
|
|
|
Total
assets
|
4,415
|
3,983
|
|
|
Liabilities
|
|
|
|
|
Unearned transportation
revenue
|
389
|
304
|
|
|
Accounts
payable
|
163
|
119
|
|
|
Accrued
liabilities
|
246
|
178
|
|
|
Lease
Liabilities
|
325
|
284
|
|
|
Other taxes and fees
payable
|
183
|
131
|
|
|
Income taxes
payable
|
11
|
4
|
|
|
Financial
debt
|
87
|
197
|
|
|
Other
liabilities
|
13
|
35
|
|
|
Total short-term
liabilities
|
1,417
|
1,252
|
|
|
Financial
debt
|
155
|
108
|
|
|
Accrued
liabilities
|
-
|
1
|
|
|
Lease
Liabilities
|
2,334
|
2,128
|
|
|
Other
liabilities
|
236
|
167
|
|
|
Employee
benefits
|
10
|
4
|
|
|
Deferred income
taxes
|
13
|
11
|
|
|
Total long-term
liabilities
|
2,748
|
2,419
|
|
|
Total
liabilities
|
4,165
|
3,671
|
|
|
Equity
|
|
|
|
|
Capital
stock
|
248
|
248
|
|
|
Treasury
shares
|
(10)
|
(9)
|
|
|
Contributions for
future capital increases
|
-
|
-
|
|
|
Legal
reserve
|
17
|
17
|
|
|
Additional paid-in
capital
|
283
|
281
|
|
|
Accumulated
deficit
|
(134)
|
(76)
|
|
|
Accumulated other
comprehensive loss
|
(154)
|
(149)
|
|
|
Total
equity
|
250
|
312
|
|
|
Total liabilities
and equity
|
4,415
|
3,983
|
|
|
|
|
|
|
|
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 million of U.S. dollars)
|
Three months
ended September
30, 2022
|
Three months
ended September
30, 2021
|
|
|
|
|
|
|
|
|
|
Net cash flow provided
by operating activities
|
88
|
187
|
|
|
Net cash flow used in
investing activities
|
(51)
|
(17)
|
|
|
Net cash flow used in
financing activities **
|
(46)
|
(86)
|
|
|
(Decrease)
increase in cash, cash equivalents and restricted
cash
|
(9)
|
84
|
|
|
Net foreign exchange
differences
|
-
|
8
|
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
759
|
532
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
750
|
624
|
|
|
**Includes aircraft
rental payments of $82 million and $78 million for the three months
ended September 30, 2022, and 2021, respectively.
|
|
|
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
Consolidated Statement of Cash Flows – Cash
Flow Data Summary
Unaudited
|
Nine months
ended September
30, 2022
|
Nine months
ended September
30, 2021
|
(In million of U.S.
dollars)
|
|
|
|
Net cash flow provided
by operating activities
|
446
|
531
|
Net cash flow used in
investing activities
|
(27)
|
(66)
|
Net cash flow used in
financing activities **
|
(411)
|
(346)
|
Increase in cash,
cash equivalents and restricted cash
|
8
|
119
|
Net foreign exchange
differences
|
1
|
7
|
Cash, cash equivalents
and restricted cash at beginning of period
|
741
|
498
|
Cash, cash
equivalents and restricted cash at end of period
|
750
|
624
|
**Includes aircraft
rental payments of $332 million and $333 million for the nine
months ended September 30, 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.
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SOURCE Controladora Vuela Compania de Aviacion, S.A.B. de C.V. -
Volaris