Group 1 - Controladora Vuela Compania de Aviacion (VLRS), known as Volaris, reported a year-over-year increase in revenue passenger miles (RPMs) for August [1] - VLRS experienced a 4.7% year-over-year increase in consolidated capacity, while consolidated traffic grew 1.9% year over year, leading to a decrease in load factor by 2.3 percentage points to 84.7% [2] - In the domestic market, RPMs decreased by 0.9% and available seat miles (ASMs) decreased by 1.4% from August 2024 levels, with a domestic load factor of 90.3%, an improvement of 0.4 percentage points year-over-year [3] - Internationally, RPMs increased by 6.6% year over year, while ASMs rose by 14.1%, resulting in a decrease in international load factor by 5.4 percentage points to 77.3% [4] - In August, VLRS transported 2.71 million passengers, reflecting a 4% year-over-year increase [4][10] Group 2 - Ryanair Holdings (RYAAY) reported a 2% year-over-year increase in passengers transported, totaling 21 million in August 2025 [6] - RYAAY's August traffic marked the eighth consecutive month of improvement, surpassing previous months' passenger numbers [7] - The load factor for RYAAY in August remained flat at 96%, indicating consistent passenger demand [8] - RYAAY operated over 114,000 flights in August 2025, an increase from previous months [9]

Core Insights - Volaris reported a 4.7% increase in ASM capacity and a 1.9% rise in RPMs for August 2025, with a total of 2.7 million passengers transported [2][3] Traffic Results - Domestic RPMs decreased by 0.9% to 1,621 million, while international RPMs increased by 6.6% to 1,030 million, resulting in a total RPM of 2,651 million, up 1.9% year-over-year [2][3] - Domestic ASMs fell by 1.4% to 1,796 million, whereas international ASMs rose by 14.1% to 1,332 million, leading to a total ASM of 3,128 million, an increase of 4.7% [2][3] - The consolidated load factor decreased by 2.3 percentage points year-over-year to 84.7%, with domestic load factor at 90.3% and international load factor at 77.3% [2][3] Year-to-Date Performance - Year-to-date RPMs show a 3.5% increase in domestic traffic and a 3.8% increase in international traffic, totaling 20,130 million RPMs, a 3.6% rise [2][3] - Year-to-date ASMs increased by 5.6% for domestic and 8.8% for international, totaling 23,927 million ASMs, a 6.9% increase [2][3] - Year-to-date load factors reflect a decline, with domestic at 88.7% and international at 77.7%, both lower than the previous year [2][3] Management Commentary - The CEO of Volaris indicated that the third quarter is progressing as expected, with a healthy balance between market supply and demand in the domestic sector [3] - The company is focusing on maximizing unit revenues through base fares and ancillary services, with positive trends in demand reinforcing confidence in its operational flexibility [3]

Company Performance - LATAM Airlines Group reported a year-over-year increase in revenue passenger-kilometers (RPK) of 10.4% for July 2025, indicating strong demand for air travel [2][9] - The company achieved a 10% year-over-year increase in consolidated capacity, measured in available seat-kilometers (ASK), driven by a 12.2% increase in international operations and an 11.8% increase in domestic operations in Brazil [1][9] - LATAM Airlines transported almost 8 million passengers in July 2025, reflecting a 7.9% year-over-year increase, with a year-to-date total of 49.5 million passengers [3][9] Load Factor and Capacity - The consolidated load factor for LATAM Airlines increased by 0.4 percentage points to 86.7% in July 2025, as traffic growth outpaced capacity expansion [2][9] - The increase in load factor indicates healthy demand across all business segments of the airline [2] Industry Context - Other airlines, such as Ryanair and Volaris, also reported traffic increases in July 2025, with Ryanair transporting 20.7 million passengers (up 3% year-over-year) and Volaris transporting 2.76 million passengers (up 3% year-over-year) [5][10] - Ryanair's load factor remained flat at 96%, while Volaris experienced a decrease in load factor by 4.9 percentage points to 84.9% due to capacity expansion outpacing traffic growth [7][10]

Key Insights - Mexican carrier Controladora Vuela Compañía de Aviación (Volaris) reported a year-over-year increase in revenue passenger miles (RPMs) for July 2025 [1] - Volaris experienced a 6% year-over-year increase in consolidated capacity, while the load factor decreased by 5 percentage points to 84.9% [2][9] - The company transported 2.76 billion passengers in July, reflecting a 3% year-over-year increase [2] Domestic and International Performance - In the domestic market, RPMs decreased by 0.4% while available seat miles (ASMs) increased by 0.7%, resulting in a domestic load factor of 90.1%, down 1 percentage point from the previous year [3] - In international markets, RPMs increased by 1% year-over-year, and ASMs rose by 14.1%, leading to an increase in the international load factor by 10.1 percentage points to 77.7% [3] Industry Comparisons - Other airlines, such as Ryanair, reported strong traffic numbers for July 2025, with 20.2 million passengers transported, an 8% year-over-year increase, and a stable load factor of 96% [5] - Copa Holdings (CPA) is also gaining from increased passenger volumes, reporting a 5.3% year-over-year increase in ASMs and a 6.3% increase in RPMs for June 2025 [6][7] - CPA's load factor improved to 87.5% from 86.6% in June 2024, indicating that traffic growth outpaced capacity expansion [7]

MEXICO CITY, Aug. 07, 2025 (GLOBE NEWSWIRE) -- 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, reports its July 2025 preliminary traffic results. In July, Volaris' ASM capacity increased 6.0%, while RPMs for the month remained essentialy flat. Mexican domestic RPMs declined 0.4%, while international RPMs increased 1.0%. Consolidated load factor dec ...

Core Viewpoint - Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) held its Q2 2025 earnings call, discussing financial results and operational performance, with key executives present to provide insights and answer questions from analysts and investors [1][2][3]. Group 1: Company Overview - The call was led by key executives including President and CEO Enrique Beltranena, Executive Vice President Holger Blankenstein, and CFO Jaime Pous, indicating a strong leadership presence during the financial results discussion [3]. - The event was recorded and broadcast live, emphasizing the company's commitment to transparency and investor engagement [2]. Group 2: Financial Performance - The second quarter results were the main focus of the call, with executives prepared to discuss the financial metrics and operational strategies that influenced performance [3].

Financial Data and Key Metrics Changes - Total operating revenues for Q2 2025 were $693 million, a 5% decrease compared to the same period last year [24] - EBITDA reached $194 million with a margin of 28%, exceeding guidance [26] - Net loss was $63 million, translating to a loss per ADS of $0.55 [27] - Average economic fuel costs declined 14% to $2.46 per gallon [24] - CASM (Cost per Available Seat Mile) was 8.05 cents, a reduction of 0.3% [24] Business Line Data and Key Metrics Changes - Ancillary revenue per passenger reached $54, accounting for over 50% of total operating revenues [17] - Domestic load factor improved to 88% by quarter end, while international load factor was 75% [15] - Total load factor for the quarter was 82% [10] Market Data and Key Metrics Changes - Domestic market showed recovery as initial fears around tariffs eased, leading to improved yields [9] - Cross-border traffic is expected to recover as demand stabilizes [10] - Demand for the second half of the year is anticipated to be stronger than the first half, aligning with historical patterns [12] Company Strategy and Development Direction - The company is focused on maintaining cost efficiency and adapting to demand fluctuations [8] - Volaris aims to expand its customer base through codeshare agreements and a new loyalty program, Altitude [20][21] - The strategy includes decoupling airport fees from ticket purchases to lower barriers to travel [18] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the company's resilience despite external challenges [7] - The outlook for the full year EBITDA margin is now expected to be in the range of 32% to 33% [12] - Management emphasizes a disciplined approach to capacity management and profitability [31] Other Important Information - The company ended the quarter with a liquidity position of $788 million, representing 26% of the last twelve months' total operating revenues [29] - The fleet consisted of 149 aircraft with an average age of 6.5 years, with 63% being fuel-efficient new models [30] Q&A Session Summary Question: Pricing scenarios and RASM for the second half of the year - Management noted improvements in demand and fare trends starting mid-second quarter, with expectations for stronger second half demand [39][40] Question: Timeline for the in-house loyalty program, Altitude - The program is designed to reward repeat travel, with positive initial customer reactions, but no material financial impact expected in 2025 [42][43] Question: Demand trends in other markets besides the U.S. - Recovery is noted in both transborder and domestic markets, with close-in bookings showing strength [46][47] Question: Transborder stability and demand trends - Demand patterns stabilized mid-second quarter, with a balanced recovery in both inbound and outbound travel [52][54] Question: Impact of the World Cup on capacity and RASM - The company operates in 10 of the 16 host cities, expecting a positive impact on demand during the event [61] Question: Fuel hedging strategy - The company is hedging 40% of consumption for July and August at a strike price of $2.15 per gallon [97] Question: Flexibility in capacity allocation between domestic and international markets - The company maintains flexibility to allocate capacity based on cash-positive flying opportunities [111] Question: Changes in consumer behavior regarding airport fees - The unbundling of airport fees has led to a positive response, with 25-30% of customers opting to pay fees before check-in [112]

Financial Data and Key Metrics Changes - Total operating revenues for Q2 2025 were $693 million, a 5% decrease compared to the same period last year [22] - EBITDA reached $194 million with a margin of 28%, exceeding guidance for the quarter [23] - Net loss was $63 million, translating to a loss per ADS of $0.55 [24] - Average economic fuel costs declined 14% to $2.46 per gallon [22] - CASM (Cost per Available Seat Mile) was 8.05 cents, a reduction of 0.3% [22] Business Line Data and Key Metrics Changes - Domestic load factor reached 88%, while international load factor was 75%, resulting in a total load factor of 82% [14] - Ancillary revenue per passenger remained strong at $54, accounting for over 50% of total operating revenues [15] - TRASM (Total Revenue per Available Seat Mile) declined 12% year over year to 7.8 cents [15] Market Data and Key Metrics Changes - Demand trends in the domestic market improved, with load factors recovering as fears around tariffs eased [8] - Cross-border traffic is expected to recover as volatility decreases, with 75% of surveyed travelers intending to fly again within six months [10] - The company noted that macroeconomic conditions and immigration uncertainties may influence demand in the near term but are manageable [10] Company Strategy and Development Direction - The company is focused on customer demand and sustained profitability, adjusting capacity based on these priorities [20] - Volaris aims to expand its customer base through codeshare agreements and a new loyalty program, Altitude, to drive repeat travel [18][19] - The company plans to grow ASMs (Available Seat Miles) in the mid-single digits in line with emerging market dynamics [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate external challenges and maintain a disciplined approach to cost management [31] - The outlook for the second half of 2025 is stronger than the first half, with an expected EBITDA margin of 32% to 33% [11][29] - Management highlighted the importance of flexibility in fleet management to respond to demand trends [11] Other Important Information - The company ended the quarter with a total liquidity position of $788 million, representing 26% of the last twelve months' total operating revenues [27] - The fleet consisted of 149 aircraft with an average age of 6.5 years, with 63% being fuel-efficient new models [28] Q&A Session Summary Question: Can you unpack pricing scenarios for the second half of the year? - Management noted that demand trends have stabilized, with expectations for stronger TRASM outcomes in the second half of the year [37][38] Question: What is the timeline for the in-house loyalty program, Altitude? - The program is designed to reward repeat travel, with positive initial customer reactions, but no material financial impact is expected in 2025 [40][41] Question: How have demand trends in other markets, particularly Central and South America, trended? - Management indicated that demand is stabilizing in both domestic and international markets, with close-in bookings showing strength [44] Question: Can you provide details on grounded aircraft and expectations for the full year? - The company had 36 aircraft grounded in Q2, with expectations for this number to remain consistent for the rest of the year [46] Question: What are the implications of potential capacity easing at Mexico City Airport? - Management does not foresee significant improvements in capacity at Mexico City Airport in the near term [100] Question: What is the fuel hedging strategy? - The company is hedging 40% of its consumption for July and August at a strike price of $2.15 per gallon [96] Question: How flexible is the company in changing routes between domestic and international markets? - The company has significant flexibility in deploying capacity based on cash-positive flying and profitability [111]

Core Insights - Controladora Vuela (VLRS) reported a revenue of $693 million for the quarter ended June 2025, reflecting a decrease of 4.6% year-over-year, with an EPS of -$0.54 compared to $0.09 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $666.74 million by 3.94%, while the EPS surprised positively by 28% against a consensus estimate of -$0.75 [1] Financial Performance Metrics - Available Seat Miles (ASMs) totaled $8.89 billion, slightly below the average estimate of $8.93 billion from two analysts [4] - The load factor was reported at 82.4%, lower than the average estimate of 85.2% [4] - Operating expenses per ASM (CASM) were 8.05 cents, slightly above the estimated 8.01 cents [4] - Fuel gallons accrued were 84.90 million, exceeding the average estimate of 83.14 million [4] - CASM excluding fuel was reported at 5.69 cents, marginally better than the average estimate of 5.71 cents [4] - Revenue Passenger Miles (RPMs) totaled $7.32 billion, below the estimated $7.61 billion [4] - Passenger revenues from fares were $285 million, significantly lower than the average estimate of $297.69 million, marking an 18.3% year-over-year decline [4] Stock Performance - Controladora Vuela's shares have returned +7.4% over the past month, outperforming the Zacks S&P 500 composite's +5.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) reported a net loss of $63 million for Q2 2025, a significant decline compared to a net income of $10 million in Q2 2024, reflecting challenges in revenue generation and increased operating expenses [5][12][40]. Financial Performance - Total operating revenues for Q2 2025 were $693 million, down 4.5% from $726 million in Q2 2024, primarily due to lower unit revenues [4][8][42]. - Total operating expenses increased to $715 million, an 8.3% rise from $660 million in the previous year, driven by higher maintenance costs and lease expenses [4][10][42]. - EBITDAR for the quarter was $194 million, a decrease of 25.7% from $261 million in Q2 2024, with an EBITDAR margin of 27.9%, down 8.0 percentage points [4][12][32]. Operational Metrics - Available seat miles (ASMs) increased by 8.7% to 8.9 billion, while the load factor decreased to 82.4%, down 3.1 percentage points from 85.5% in the previous year [4][8][33]. - The number of booked passengers rose by 6.3% to 7.5 million, with domestic and international passengers increasing by 6.6% and 5.2%, respectively [8][33]. Cost Structure - The average economic fuel cost decreased by 14% to $2.46 per gallon, contributing to a slight decline in total operating expenses per available seat mile (CASM) to $8.05, down 0.3% [5][10][32]. - CASM excluding fuel increased by 6.7% to $5.69, reflecting ongoing cost control measures despite operational challenges [10][32]. Guidance and Outlook - The company reinstated its full-year guidance for EBITDAR margin, now expected to be in the range of 32% to 33% for 2025, despite external geopolitical challenges [3][17]. - For Q3 2025, Volaris anticipates ASM growth of approximately 6% and a TRASM of around $8.6 cents, indicating a cautious but optimistic outlook [17][18]. Balance Sheet and Liquidity - As of June 30, 2025, total cash, cash equivalents, and short-term investments amounted to $788 million, representing 26% of the last twelve months' total operating revenue [13][50]. - The net debt-to-LTM EBITDAR ratio stood at 2.9x, consistent with the previous quarter, indicating stable leverage despite the operational losses [14][50]. Fleet and Capacity - The fleet size increased to 149 aircraft, with the addition of four A320neo and one A321neo, reflecting a strategy to modernize and expand capacity [21][22]. - The average age of the fleet is 6.5 years, with 63% of the aircraft being New Engine Option (NEO) models, enhancing fuel efficiency and operational performance [21][22].