Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE: VLRS
and BMV: VOLAR) (“Volaris” or “the Company”), the ultra-low-cost
carrier (ULCC) serving Mexico, the United States, Central, and
South America, today reports its unaudited financial results for
the second quarter of 20241.
Second Quarter 2024
Highlights(All figures are reported in U.S. dollars and
compared to 2Q 2023 unless otherwise noted)
- Net income of $10
million. Earnings per American Depositary Shares (ADS) of $9
cents.
- Total
operating revenue of $726 million, a 7.2% decrease.
- Total
revenue per available seat mile (TRASM) increased 12% to
$8.89 cents.
- Available
seat miles (ASMs) decreased by 17% to 8.2 billion.
- Total
operating expenses of $660 million, representing 91% of
total operating revenue.
- Total
operating expenses per available seat mile (CASM)
increased 9.1% to $8.08 cents.
- Average
economic fuel cost increased 6.1% to $2.86 per
gallon.
- CASM ex
fuel increased 11% to $5.33 cents.
-
EBITDAR of $261 million, a 23% increase.
- EBITDAR
margin was 35.9%, an increase of 8.8 percentage
points.
- Total cash,
cash equivalents, restricted cash, and short-term
investments totaled $774 million, representing 24% of the
last twelve months’ total operating revenue.
- Net
debt-to-LTM EBITDAR2 ratio decreased to
2.9x, compared to 3.1x in the previous quarter.
Enrique Beltranena, President &
Chief Executive Officer, said: “Volaris continues to
perform positively, achieving our highest absolute EBITDAR for a
second quarter despite the fleet groundings due to accelerated
engine inspections. Volaris’ unwavering focus on execution and
efficient cost control has enabled us to deliver strong results.
Our mitigation plan is on track with favorable outcomes, and we
have largely achieved our goals since the inspections began. In
fact, we are improving our full-year ASM guidance to -14%3. We
currently have a well-balanced market mix, with an increased
presence in the cross-border market that has strengthened our
TRASM, and our booking curves indicate ongoing robust performance
for the summer high season.
With recent updates from Pratt & Whitney, we
are cautiously optimistic about this evolving situation, but we
recognize that the engine's time on wing remains a challenge.
Looking ahead, as grounded aircraft gradually return to our
productive fleet, we expect recent unit revenue levels to remain
resilient and remain committed to prudent and rational growth,
prioritizing profitability.”
1 The financial information, unless otherwise
indicated, is presented in accordance with the International
Financial Reporting Standards (IFRS).2 Includes short-term
investments.3 See detailed guidance on page 5.
Second Quarter 2024 Consolidated
Financial and Operating Highlights(All figures are
reported in U.S. dollars and compared to 2Q 2023 unless otherwise
noted)
|
|
Second Quarter |
|
Consolidated Financial Highlights |
2024 |
2023 |
Var. |
|
Total operating revenue (millions) |
726 |
782 |
(7.2%) |
|
TRASM (cents) |
8.89 |
7.92 |
12.2% |
|
ASMs (million, scheduled & charter) |
8,173 |
9,873 |
(17.2%) |
|
Load Factor (RPMs/ASMs) |
85.5% |
84.6% |
0.9 pp |
|
Passengers (thousand, scheduled & charter) |
7,087 |
8,373 |
(15.4%) |
|
Fleet (at the end of the period) |
136 |
123 |
13 |
|
Total operating expenses (millions) |
660 |
731 |
(9.7%) |
|
CASM (cents) |
8.08 |
7.40 |
9.1% |
|
CASM ex fuel (cents) |
5.33 |
4.82 |
10.7% |
|
Adjusted CASM ex fuel (cents)4 |
4.86 |
4.43 |
9.6% |
|
Operating income (EBIT) (millions) |
66 |
51 |
29.4 % |
|
% EBIT Margin |
9.1% |
6.5% |
2.6 pp |
|
Net income (millions) |
10 |
6 |
66.7 % |
|
% Net income Margin |
1.4% |
0.7% |
0.7 pp |
|
EBITDAR (millions) |
261 |
212 |
23.1 % |
|
% EBITDAR Margin |
35.9% |
27.1% |
8.8 pp |
|
Net debt-to-EBITDAR5 |
2.9x |
3.5x |
(0.6x) |
Reconciliation of CASM to Adjusted CASM ex
fuel:
|
|
Second Quarter |
|
Reconciliation of CASM |
2024 |
2023 |
Var. |
| CASM
(cents) |
8.08 |
7.40 |
9.1% |
| Fuel
expense |
(2.75) |
(2.58) |
6.9% |
| CASM ex
fuel |
5.33 |
4.82 |
10.7% |
| Aircraft and engine variable
lease expenses6 |
(0.56) |
(0.41) |
36.2% |
| Sale
and lease back gains |
0.09 |
0.02 |
>100% |
| Adjusted CASM ex
fuel |
4.86 |
4.43 |
9.6% |
| Note: Figures are rounded for
convenience purposes. Further detail found in financial and
operating indicators. |
| 4 Excludes fuel expense,
aircraft and engine variable lease expenses and sale and lease-back
gains. |
| 5 Includes short-term
investments. |
| 6 Aircraft redeliveries. |
Second Quarter 2024(All figures
are reported in U.S. dollars and compared to 2Q 2023 unless
otherwise noted)
Total operating revenue
amounted to $726 million in the quarter, driven by strong domestic
demand and an improvement in total operating revenue per passenger.
This represents a 7.2% decrease, notwithstanding the 17% reduction
in total capacity resulting from aircraft-on-ground (AOG) due to
Pratt & Whitney’s accelerated engine inspections.
Total capacity, in terms of available
seat miles (ASMs), was 8.2 billion.
Booked passengers totaled 7.1
million, a 15% decrease. Mexican domestic and international booked
passengers decreased 18% and 4.9%, respectively.
The load factor for the quarter
reached 85.5%, representing an increase of 0.9 percentage
points.
TRASM rose 12% to $8.89 cents,
and total operating revenue per passenger stood at $102,
representing a 9.8% increase.
The average base fare was $49, a 4.3% increase.
The total ancillary revenue per passenger was $53, reflecting a 15%
improvement. Ancillary revenue represented 52% of total operating
revenue, up by 2.6 percentage points.
Total operating expenses were
$660 million, representing 91% of total operating revenue.
CASM totaled $8.08 cents, a
9.1% increase when compared to the same period of 2023.
The average economic fuel cost
rose 6.1% to $2.86 per gallon.
CASM ex fuel increased 11% to
$5.33 cents, mainly due to the AOG due to Pratt and Whitney's
engine preventive accelerated inspections.
Comprehensive financing result
represented an expense of $52 million, compared to a $43 million
expense in the same period of the previous year.
Income tax expense was $4
million, compared to a $2 million expense registered in the second
quarter of 2023.
Net income in the quarter was
$10 million, with an earnings per ADS of $9 cents.
EBITDAR for the quarter was
$261 million, a 23% improvement, primarily attributable to strong
unit revenues and efficient cost control, partially offset by an
increase in fuel prices. EBITDAR margin stood at
35.9%, up by 8.8 percentage points.
Balance Sheet, Liquidity, and Capital
Allocation
For the quarter, net cash flow provided by
operating activities was $304 million. Net cash flow used in
investing and financing activities was $141 million and $149
million, respectively.
As of June 30, 2024, cash, cash equivalents,
restricted cash, and short-term investments were $774 million,
representing 24% of the last twelve months' total operating
revenue.
The financial debt amounted to $638 million,
while total lease liabilities stood at $3,003 million, resulting in
a net debt of $2,8677 million.
Net debt-to-LTM
EBITDAR7 ratio stood at 2.9x, compared to
3.1x in the previous quarter and 3.5x in the same period of
2023.
The average exchange rate for the period was
Ps.17.21 per U.S. dollar, a 2.9% appreciation. At the end of the
second quarter, the exchange rate stood at Ps.18.38 per U.S.
dollar.
7 Includes short-term investments.
2024 Guidance
For the third quarter of 2024, the Company
expects:
|
|
3Q’24 |
3Q’23 (1) |
|
3Q’24 Guidance |
|
|
|
ASM growth (YoY) |
~ -14% |
+8.2% |
|
TRASM |
~$9.3 cents |
$8.37 cents |
|
CASM ex fuel |
~$5.6 cents |
$4.91 cents |
|
EBITDAR margin |
~33% |
24.4% |
|
Average USD/MXN rate |
Ps.18.40 to 18.60 |
Ps.17.06 |
|
Average U.S. Gulf Coast jet fuel price |
$2.60 to $2.70 |
$2.77 |
(1) For convenience purposes, actual reported
figures for 3Q'23 are included.
For the full year 2024, the Company expects:
|
|
Updated Guidance |
Prior Guidance |
|
Full Year 2024 Guidance |
|
|
|
ASM growth (YoY) |
~ -14% |
-16% to -18% |
|
EBITDAR margin |
32% to 34% |
32% to 34% |
|
CAPEX (2) |
$400 million |
$400 million |
|
Average USD/MXN rate |
Ps.17.80 to 18.00 |
Ps.17.30 to 17.50 |
|
Average U.S. Gulf Coast jet fuel price |
$2.60 to $2.70 |
$2.60 to $2.70 |
(2) CAPEX net of financed fleet predelivery payments.
The third quarter and full year 2024 outlook
presented above includes the compensation that Volaris expects to
receive for the projected grounded aircraft resulting from the GTF
engine removals, in accordance with the Company’s agreement with
Pratt & Whitney.
The Company's outlook is subject to unforeseen
disruptions, macroeconomic factors, or other negative impacts that
may affect its business and is based on several assumptions,
including the foregoing, which are subject to change and may be
outside the control of the Company and its management. The
Company's expectations may change if actual results vary from these
assumptions. There can be no assurances that Volaris will achieve
these results.
Fleet
During the second quarter, Volaris added two
A321neo aircraft to its fleet, bringing the total number of
aircraft to 136. At the end of the quarter, Volaris’ fleet had an
average age of 6.1 years and an average seating capacity of 197
passengers per aircraft. Of the total fleet, 60% of the aircraft
are New Engine Option (NEO) models.
|
|
Second Quarter |
First Quarter |
|
Total Fleet |
2024 |
2023 |
Var. |
2024 |
Var. |
|
CEO |
|
|
|
|
|
|
A319 |
3 |
3 |
- |
3 |
- |
|
A320 |
42 |
40 |
2 |
42 |
- |
|
A321 |
10 |
10 |
- |
10 |
- |
|
NEO |
|
|
|
|
|
|
A320 |
51 |
51 |
- |
51 |
- |
|
A321 |
30 |
19 |
11 |
28 |
2 |
|
Total aircraft at the end of the period |
136 |
123 |
13 |
134 |
2 |
Investors are urged to carefully read the Company’s periodic
reports filed with or provided to the Securities and Exchange
Commission, for additional information regarding the Company.
Investor Relations ContactRicardo Martínez /
ir@volaris.com
Media ContactIsrael Álvarez /
ialvarez@gcya.net
Conference Call Details
|
Date: |
Tuesday, July 23, 2024 |
| Time: |
9:00 am Mexico City /
11:00 am New York (USA) (ET) |
| Webcast
link: |
Volaris Webcast
(View the live webcast) |
| Dial-in & Live
Q&A link: |
Volaris Dial-in and Live
Q&A
- Click on the call link and complete
the online registration form.
- Upon registering you will receive
the dial-in info and a unique PIN to join the call, as well as an
email confirmation with the details.
- Select a method for joining the
call:
- Dial-In: A dial-in number and
unique PIN are displayed to connect directly from your phone.
- Call Me: Enter your phone number
and click “Call Me” for an immediate callback from the system.
|
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 201 and its fleet from 4 to 137 aircraft. Volaris
offers more than 500 daily flight segments on routes that connect
44 cities in Mexico and 29 cities in the United States, Central,
and South America, with one of the youngest fleets in Mexico.
Volaris targets passengers who are visiting friends and relatives,
cost-conscious business and leisure travelers in Mexico, the United
States, Central, and South America. Volaris has received the ESR
Award for Social Corporate Responsibility for fifteen consecutive
years. For more information, please visit ir.volaris.com. Volaris
routinely posts information that may be important to investors on
its investor relations website. The Company encourages investors
and potential investors to consult the Volaris website regularly
for important information about Volaris.
Forward-Looking Statements
Statements in this release contain various
forward-looking statements within the meaning of Section 27A of the
US Securities Act of 1933, as amended, and Section 21E of the US
Securities Exchange Act of 1934, as amended, which represent the
Company's expectations, beliefs, or projections concerning future
events and financial trends affecting the financial condition of
our business. When used in this release, the words "expects,"
“intends,” "estimates," “predicts,” "plans," "anticipates,"
"indicates," "believes," "forecast," "guidance," “potential,”
"outlook," "may," “continue,” "will," "should," "seeks," "targets"
and similar expressions are intended to identify forward-looking
statements. Similarly, statements describing the Company's
objectives, plans or goals, or actions the Company may take in the
future are forward-looking. Forward-looking statements include,
without limitation, statements regarding the Company's outlook, the
expectation of receiving certain compensation in connection with
the GTF engine removals, and the anticipated execution of its
business plan and focus on its priorities. Forward-looking
statements should not be read as a guarantee or assurance of future
performance or results. They will not necessarily be accurate
indications of the times at or by which such performance or results
will be achieved. Forward-looking statements are based on
information available at the time those statements are made and/or
management’s good faith belief as of that time concerning future
events and are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in or suggested by the forward-looking statements.
Forward-looking statements are subject to several factors that
could cause the Company's actual results to differ materially from
the Company's expectations, including the competitive environment
in the airline industry, the Company's ability to keep costs low;
changes in fuel costs, the impact of worldwide economic conditions
on customer travel behavior; the Company's ability to generate
non-ticket revenue; and government regulation. The Company's US
Securities and Exchange Commission filings contain additional
information concerning these and other factors. All forward-looking
statements attributable to us or persons acting on our behalf are
expressly qualified in their entirety by the cautionary statements
set forth above. Forward-looking statements speak only as of the
date of this release. You should not put undue reliance on any
forward-looking statements. We assume no obligation to update
forward-looking statements to reflect actual results, changes in
assumptions, or changes in other factors affecting forward-looking
information except to the extent required by applicable law. If we
update one or more forward-looking statements, no inference should
be drawn that we will make additional updates with respect to those
or other forward-looking statements.
Supplemental Information on Non-IFRS
Measures
We evaluate our financial performance by using
various financial measures that are not performance measures under
International Financial Reporting Standards (“non-IFRS measures”).
These non-IFRS measures include CASM, CASM ex fuel, Adjusted CASM
ex fuel, EBITDAR, Net debt-to-LTM EBITDAR, Total cash, cash
equivalents, restricted cash, and short-term investments. We define
CASM as total operating expenses by available seat mile. We define
CASM ex fuel as total operating expenses by available seat mile,
excluding fuel expense. We define Adjusted CASM ex fuel as total
operating expenses by available seat mile, excluding fuel expense,
aircraft and engine variable lease expenses and sale and lease back
gains. We define EBITDAR as earnings before interest, income tax,
depreciation and amortization, depreciation of right of use assets
and aircraft and engine variable lease expenses. We define Net
debt-to-LTM EBITDAR as Net debt divided by LTM EBITDAR. We define
Total cash, cash equivalents, restricted cash, and short-term
investments as the sum of cash, cash equivalents, restricted cash,
and short-term investments.
These non-IFRS measures are provided as
supplemental information to the financial information presented in
this release that is calculated and presented in accordance with
International Financial Reporting Standards (“IFRS”) because we
believe that they, in conjunction with the IFRS financial
information, provide useful information to management’s, analysts
and investors overall understanding of our operating
performance.
Because non-IFRS measures are not calculated in
accordance with IFRS, they should not be considered superior to and
are not intended to be considered in isolation or as a substitute
for the related IFRS measures presented in this release and may not
be the same as or comparable to similarly titled measures presented
by other companies due to possible differences in the method of
calculation and the items being adjusted.
We encourage investors to review our financial
statements and other filings with the Securities and Exchange
Commission in their entirety for additional information regarding
the Company and not to rely on any single financial measure.
Shareholders have the ability to receive a hard copy of the 2023
audited consolidated financial statements free of charge upon
request.
|
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and
SubsidiariesFinancial and Operating Indicators |
|
|
|
Unaudited(U.S. dollars, except otherwise
indicated) |
Three months ended June 30, 2024 |
Three months ended June 30, 2023 |
Variance |
|
Total operating revenues (millions) |
726 |
782 |
(7.2%) |
|
Total operating expenses (millions) |
660 |
731 |
(9.7%) |
|
EBIT (millions) |
66 |
51 |
29.4% |
|
EBIT margin |
9.1% |
6.5% |
2.6 pp |
|
Depreciation and amortization (millions) |
150 |
121 |
24.0% |
|
Aircraft and engine variable lease expenses (millions) |
45 |
40 |
12.5% |
|
Net income (millions) |
10 |
6 |
66.7% |
|
Net income margin |
1.4% |
0.7% |
0.7 pp |
|
Earnings per share
(1): |
|
|
|
|
Basic |
0.01 |
0.00 |
89.6% |
|
Diluted |
0.01 |
0.00 |
89.1% |
|
Earnings per ADS*: |
|
|
|
|
Basic |
0.09 |
0.05 |
89.6% |
|
Diluted |
0.09 |
0.05 |
89.1% |
|
Weighted average shares outstanding: |
|
|
|
|
Basic |
1,150,766,440 |
1,152,974,446 |
(0.2%) |
|
Diluted |
1,165,976,677 |
1,165,244,334 |
0.1% |
|
Financial Indicators |
|
|
|
|
Total operating revenue per ASM (TRASM) (cents) (2) |
8.89 |
7.92 |
12.2% |
|
Average base fare per passenger |
49 |
47 |
4.3% |
|
Total ancillary revenue per passenger (3) |
53 |
46 |
15.3% |
|
Total operating revenue per passenger |
102 |
93 |
9.8% |
|
Operating expenses per ASM (CASM) (cents) (2) |
8.08 |
7.40 |
9.1% |
|
CASM ex fuel (cents) (2) |
5.33 |
4.82 |
10.7% |
|
Adjusted CASM ex fuel (cents) (2) (4) |
4.86 |
4.43 |
9.6% |
|
Operating Indicators |
|
|
|
|
Available seat miles (ASMs) (millions) (2) |
8,173 |
9,873 |
(17.2%) |
|
Domestic |
4,868 |
6,614 |
(26.4%) |
|
International |
3,305 |
3,260 |
1.4% |
|
Revenue passenger miles (RPMs) (millions) (2) |
6,988 |
8,348 |
(16.3%) |
|
Domestic |
4,388 |
5,643 |
(22.2%) |
|
International |
2,600 |
2,705 |
(3.9%) |
|
Load factor (5) |
85.5% |
84.6% |
0.9 pp |
|
Domestic |
90.1% |
85.3% |
4.9 pp |
|
International |
78.7% |
83.0% |
(4.3 pp) |
|
Booked passengers (thousands) (2) |
7,087 |
8,373 |
(15.4%) |
|
Domestic |
5,324 |
6,518 |
(18.3%) |
|
International |
1,763 |
1,855 |
(4.9%) |
|
Departures (2) |
42,495 |
51,127 |
(16.9%) |
|
Block hours (2) |
109,638 |
132,965 |
(17.5%) |
|
Aircraft at end of period |
136 |
123 |
13 |
|
Average aircraft utilization (block hours) |
13.05 |
13.27 |
(1.7%) |
|
Fuel gallons accrued (millions) |
77.93 |
94.04 |
(17.1%) |
|
Average economic fuel cost per gallon (6) |
2.86 |
2.70 |
6.1% |
|
Average exchange rate |
17.21 |
17.72 |
(2.9%) |
|
Exchange rate at the end of the period |
18.38 |
17.07 |
7.6% |
|
*Each ADS represents ten CPOs and each CPO represents a financial
interest in one Series A share. |
| (1)
The basic and diluted loss or earnings per share are calculated
inaccordance with IAS 33. Basic loss or earnings per share is
calculated bydividing net loss or earnings by the average number of
shares outstanding(excluding treasury shares). Diluted loss or
earnings per share is calculated bydividing net loss or earnings by
the average number of shares outstandingadjusted for dilutive
effects. |
(2)
Includes schedule and charter. (3) Includes “Other passenger
revenues” and “Non-passenger revenues”.(4) Excludes fuel expense,
aircraft and engine variable lease expenses and saleand lease-back
gains.(5) Includes schedule.(6) Excludes Non-creditable VAT. |
|
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and
SubsidiariesFinancial and Operating Indicators |
|
|
|
Unaudited(U.S. dollars, except otherwise
indicated) |
Six months ended June 30, 2024 |
Six months ended June 30, 2023 |
Variance |
|
Total operating revenues (millions) |
1,494 |
1,513 |
(1.3%) |
|
Total operating expenses (millions) |
1,324 |
1,493 |
(11.3%) |
|
EBIT (millions) |
170 |
20 |
>100% |
|
EBIT margin |
11.4% |
1.3% |
10.1 pp |
|
Depreciation and amortization (millions) |
283 |
240 |
17.9% |
|
Aircraft and engine variable lease expenses (millions) |
42 |
76 |
(44.7%) |
|
Net income (loss) (millions) |
44 |
(65) |
N/A |
|
Net income (loss) margin |
2.9% |
(4.3%) |
7.2 pp |
|
Earnings (loss) per share
(1): |
|
|
|
|
Basic |
0.04 |
(0.06) |
N/A |
|
Diluted |
0.04 |
(0.06) |
N/A |
|
Earnings (loss) per ADS*: |
|
|
|
|
Basic |
0.38 |
(0.57) |
N/A |
|
Diluted |
0.37 |
(0.56) |
N/A |
|
Weighted average shares outstanding: |
|
|
|
|
Basic |
1,151,108,712 |
1,152,750,608 |
(0.1%) |
|
Diluted |
1,165,976,677 |
1,165,147,164 |
0.1% |
|
Financial Indicators |
|
|
|
|
Total operating revenue per ASM (TRASM) (cents) (2) |
9.12 |
7.81 |
16.7% |
|
Average base fare per passenger |
52 |
47 |
9.4% |
|
Total ancillary revenue per passenger (3) |
55 |
44 |
24.5% |
|
Total operating revenue per passenger |
107 |
91 |
16.7% |
|
Operating expenses per ASM (CASM) (cents) (2) |
8.08 |
7.71 |
4.8% |
|
CASM ex fuel (cents) (2) |
5.25 |
4.74 |
10.8% |
|
Adjusted CASM ex fuel (cents) (2) (4) |
5.09 |
4.36 |
16.8% |
|
Operating Indicators |
|
|
|
|
Available seat miles (ASMs) (millions) (2) |
16,390 |
19,362 |
(15.3%) |
|
Domestic |
9,636 |
13,151 |
(26.7%) |
|
International |
6,754 |
6,211 |
8.7% |
|
Revenue passenger miles (RPMs) (millions) (2) |
14,134 |
16,415 |
(13.9%) |
|
Domestic |
8,717 |
11,189 |
(22.1%) |
|
International |
5,417 |
5,226 |
3.7% |
|
Load factor (5) |
86.2% |
84.8% |
1.4 pp |
|
Domestic |
90.5% |
85.1% |
5.4 pp |
|
International |
80.2% |
84.2% |
(4.0 pp) |
|
Booked passengers (thousands) (2) |
14,010 |
16,559 |
(15.4%) |
|
Domestic |
10,309 |
12,958 |
(20.4%) |
|
International |
3,702 |
3,601 |
2.8% |
|
Departures (2) |
82,923 |
101,318 |
(18.2%) |
|
Block hours (2) |
219,001 |
263,514 |
(16.9%) |
|
Aircraft at end of period |
136 |
123 |
13 |
|
Average aircraft utilization (block hours) |
12.89 |
13.39 |
(3.8%) |
|
Fuel gallons accrued (millions) |
157.15 |
186.27 |
(15.6%) |
|
Average economic fuel cost per gallon (6) |
2.93 |
3.07 |
(4.5%) |
|
Average exchange rate |
17.10 |
18.21 |
(6.1%) |
|
Exchange rate at the end of the period |
18.38 |
17.07 |
7.6% |
|
*Each ADS represents ten CPOs and each CPO represents a financial
interest in one Series A share |
| (1)
The basic and diluted loss or earnings per share are calculated
inaccordance with IAS 33. Basic loss or earnings per share is
calculated bydividing net loss or earnings by the average number of
shares outstanding(excluding treasury shares). Diluted loss or
earnings per share is calculated bydividing net loss or earnings by
the average number of shares outstandingadjusted for dilutive
effects. |
(2)
Includes schedule and charter.(3) Includes “Other passenger
revenues” and “Non-passenger revenues”.(4) Excludes fuel expense,
aircraft and engine variable lease expenses and saleand lease-back
gains. (5) Includes schedule. (6) Excludes Non-creditable VAT. |
|
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and
SubsidiariesConsolidated Statement of Operations |
| |
|
Unaudited(In millions of U.S.
dollars) |
Three months ended June 30, 2024 |
Three months ended June 30, 2023 |
Variance |
|
Operating revenues: |
|
|
|
|
Passenger revenues |
693 |
746 |
(7.1%) |
|
Fare revenues |
349 |
396 |
(11.9%) |
|
Other passenger revenues |
344 |
350 |
(1.7%) |
|
|
|
|
|
|
Non-passenger revenues |
33 |
36 |
(8.3%) |
|
Cargo |
5 |
5 |
0.0% |
|
Other non-passenger revenues |
28 |
31 |
(9.7%) |
|
|
|
|
|
|
Total operating revenues |
726 |
782 |
(7.2%) |
|
|
|
|
|
| Other
operating income |
(48) |
(3) |
>100% |
| Fuel
expense |
224 |
255 |
(12.2%) |
| Aircraft
and engine variable lease expenses |
45 |
40 |
12.5% |
| Salaries
and benefits |
99 |
96 |
3.1% |
| Landing,
take-off and navigation expenses |
117 |
127 |
(7.9%) |
| Sales,
marketing and distribution expenses |
32 |
38 |
(15.8%) |
|
Maintenance expenses |
11 |
25 |
(56.0%) |
|
Depreciation and amortization |
50 |
31 |
61.3% |
|
Depreciation of right of use assets |
100 |
90 |
11.1% |
| Other
operating expenses |
30 |
32 |
(6.3%) |
|
Operating expenses |
660 |
731 |
(9.7%) |
|
|
|
|
|
|
Operating income |
66 |
51 |
29.4% |
|
|
|
|
|
| Finance
income |
12 |
9 |
33.3% |
| Finance
cost |
(72) |
(57) |
26.3% |
| Exchange
gain, net |
8 |
5 |
60.0% |
|
Comprehensive financing result |
(52) |
(43) |
20.9% |
|
|
|
|
|
|
Income before income tax |
14 |
8 |
75.0% |
| Income
tax expense |
(4) |
(2) |
100.0% |
|
Net income |
10 |
6 |
66.7% |
|
|
|
|
|
|
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and
SubsidiariesConsolidated Statement of Operations |
|
|
|
Unaudited(In millions of U.S.
dollars) |
Six months ended June 30, 2024 |
Six months ended June 30,
2023 |
Variance |
|
Operating revenues: |
|
|
|
|
Passenger revenues |
1,425 |
1,447 |
(1.5%) |
|
Fare revenues |
724 |
782 |
(7.4%) |
|
Other passenger revenues |
701 |
665 |
5.4% |
|
|
|
|
|
|
Non-passenger revenues |
69 |
66 |
4.5% |
|
Cargo |
11 |
10 |
10.0% |
|
Other non-passenger revenues |
58 |
56 |
3.6% |
|
|
|
|
|
|
Total operating revenues |
1,494 |
1,513 |
(1.3%) |
|
|
|
|
|
|
Other operating income |
(93) |
(4) |
>100% |
|
Fuel expense |
464 |
576 |
(19.4%) |
|
Aircraft and engine variable lease expenses |
42 |
76 |
(44.7%) |
|
Salaries and benefits |
201 |
187 |
7.5% |
|
Landing, take-off and navigation expenses |
244 |
237 |
3.0% |
|
Sales, marketing and distribution expenses |
78 |
74 |
5.4% |
|
Maintenance expenses |
48 |
51 |
(5.9%) |
|
Depreciation and amortization |
85 |
63 |
34.9% |
|
Depreciation of right of use assets |
198 |
177 |
11.9% |
|
Other operating expenses |
57 |
56 |
1.8% |
|
Operating expenses |
1,324 |
1,493 |
(11.3%) |
|
|
|
|
|
|
Operating income |
170 |
20 |
>100% |
|
|
|
|
|
|
Finance income |
24 |
16 |
50.0% |
|
Finance cost |
(134) |
(115) |
16.5% |
|
Exchange gain (loss), net |
2 |
(8) |
N/A |
|
Comprehensive financing result |
(108) |
(107) |
0.9% |
|
|
|
|
|
|
Income (loss) before income tax |
62 |
(87) |
N/A |
|
Income tax (expense) benefit |
(18) |
22 |
N/A |
|
Net income (loss) |
44 |
(65) |
N/A |
|
|
|
|
|
|
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries |
|
Reconciliation of Total Ancillary Revenue per Passenger |
| The
following table provides additional details about the components of
total ancillary revenue for the quarter: |
|
Unaudited(In millions of U.S.
dollars) |
Three months ended June 30, 2024 |
Three months ended June 30, 2023 |
Variance |
|
|
|
|
|
|
Other passenger revenues |
344 |
350 |
(1.7%) |
|
Non-passenger revenues |
33 |
36 |
(8.3%) |
|
Total ancillary revenues |
377 |
386 |
(2.3%) |
|
|
|
|
|
|
Booked passengers (thousands) (1) |
7,087 |
8,373 |
(15.4%) |
|
|
|
|
|
|
Total ancillary revenue per passenger |
53 |
46 |
15.3% |
|
|
|
|
|
|
(1) Includes schedule and charter. |
|
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries |
|
Reconciliation of Total Ancillary Revenue per Passenger |
| The following
table provides additional details about the components of total
ancillary revenue for the first half of the year: |
|
Unaudited(In millions of U.S.
dollars) |
Six months ended June 30, 2024 |
Six months ended June 30, 2023 |
Variance |
|
|
|
|
|
|
Other passenger revenues |
701 |
665 |
5.4% |
|
Non-passenger revenues |
69 |
66 |
4.5% |
|
Total ancillary revenues |
770 |
731 |
5.3% |
|
|
|
|
|
| Booked
passengers (thousands) (1) |
14,010 |
16,559 |
(15.4%) |
|
|
|
|
|
|
Total ancillary revenue per passenger |
55 |
44 |
24.5% |
|
|
|
|
|
| (1) Includes
schedule and charter. |
|
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and
SubsidiariesConsolidated Statement of Financial
Position |
|
|
|
(In millions of U.S. dollars) |
As of June 30, 2024Unaudited |
As of December 31,
2023Audited |
|
Assets |
|
|
|
Cash, cash equivalents and restricted cash |
758 |
774 |
|
Short-term investments |
16 |
15 |
|
Total cash, cash equivalents, restricted cash, and
short-term investments (1) |
774 |
- |
|
Accounts receivable, net |
226 |
251 |
|
Inventories |
16 |
16 |
|
Guarantee deposits |
200 |
148 |
|
Prepaid expenses and other current assets |
57 |
44 |
|
Total current assets |
1,273 |
1,248 |
|
Right of use assets |
2,436 |
2,338 |
|
Rotable spare parts, furniture and equipment, net |
954 |
805 |
|
Intangible assets, net |
21 |
16 |
|
Derivatives financial instruments |
1 |
2 |
|
Deferred income taxes |
249 |
236 |
|
Guarantee deposits |
441 |
462 |
|
Other long-term assets |
43 |
39 |
|
Total non-current assets |
4,145 |
3,898 |
|
Total assets |
5,418 |
5,146 |
|
Liabilities and equity |
|
|
|
Unearned transportation revenue |
459 |
343 |
|
Accounts payable |
209 |
250 |
|
Accrued liabilities |
184 |
163 |
|
Other taxes and fees payable |
271 |
262 |
|
Income taxes payable |
14 |
8 |
|
Financial debt |
325 |
220 |
|
Lease liabilities |
357 |
373 |
|
Other liabilities |
6 |
2 |
|
Total short-term liabilities |
1,825 |
1,621 |
|
Financial debt |
313 |
433 |
|
Accrued liabilities |
10 |
14 |
|
Employee benefits |
15 |
15 |
|
Deferred income taxes |
16 |
16 |
|
Lease liabilities |
2,646 |
2,518 |
|
Other liabilities |
307 |
286 |
|
Total long-term liabilities |
3,307 |
3,282 |
|
Total liabilities |
5,132 |
4,903 |
|
Equity |
|
|
|
Capital stock |
248 |
248 |
|
Treasury shares |
(12) |
(12) |
|
Contributions for future capital increases |
- |
- |
|
Legal reserve |
17 |
17 |
|
Additional paid-in capital |
284 |
282 |
|
Accumulated deficit |
(104) |
(148) |
|
Accumulated other comprehensive loss |
(147) |
(144) |
|
Total equity |
286 |
243 |
|
Total liabilities and equity |
5,418 |
5,146 |
|
(1) Non-GAAP measure. |
|
|
|
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and
SubsidiariesConsolidated Statement of Cash Flows – Cash
Flow Data Summary |
|
|
|
Unaudited(In millions of U.S.
dollars) |
Three months ended June 30, 2024 |
Three months ended June 30, 2023 |
|
|
|
|
|
Net cash flow provided by operating activities |
304 |
159 |
|
Net cash flow used in investing activities |
(141) |
(102) |
|
Net cash flow used in financing activities* |
(149) |
(109) |
|
Increase (decrease) in cash, cash equivalents and
restricted cash |
14 |
(52) |
|
Net foreign exchange differences |
(8) |
3 |
|
Cash, cash equivalents and restricted cash at beginning of
period |
752 |
704 |
|
Cash, cash equivalents and restricted cash at end of
period |
758 |
655 |
|
*Includes aircraft rental payments of $143 million and $131 million
for the three months ended June 30, 2024, and 2023,
respectively. |
|
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and
SubsidiariesConsolidated Statement of Cash Flows – Cash
Flow Data Summary |
|
|
|
Unaudited(In millions of U.S.
dollars) |
Six months ended June 30, 2024 |
Six months ended June 30, 2023 |
|
|
|
|
|
Net cash flow provided by operating activities |
549 |
367 |
|
Net cash flow used in investing activities |
(238) |
(211) |
|
Net cash flow used in financing activities* |
(320) |
(219) |
|
Decrease in cash, cash equivalents and restricted
cash |
(9) |
(63) |
|
Net foreign exchange differences |
(7) |
6 |
|
Cash, cash equivalents and restricted cash at beginning of
period |
774 |
712 |
|
Cash, cash equivalents and restricted cash at end of
period |
758 |
655 |
|
*Includes aircraft rental payments of $284 million and $258 million
for the six months ended June 30, 2024, and 2023,
respectively. |
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