For the quarter ended December 2024, Controladora Vuela (VLRS) reported revenue of $835 million, down 7.1% over the same period last year. EPS came in at $0.39, compared to $0.96 in the year-ago quarter.The reported revenue represents a surprise of -0.56% over the Zacks Consensus Estimate of $839.71 million. With the consensus EPS estimate being $0.55, the EPS surprise was -29.09%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Financial Data and Key Metrics Changes - In 2024, Volaris achieved a net profit of $126 million, with an EBIT margin of 13% and an EBITDAR margin of 36% [44][54] - Total operating revenues for the year were $3.1 billion, reflecting a 4% decrease despite flying 13% fewer ASMs [54] - The average economic fuel cost dropped by 20% to $2.51 per gallon, while CASM increased by 3% to $0.0804 [48][54] Business Line Data and Key Metrics Changes - Ancillary revenues accounted for over 50% of total revenues, with record ancillaries per passenger reaching $55, a 15% increase [13][25] - Domestic capacity decreased by 22% in 2024, while the Mexico to US segment grew by 16% [27][28] - The total load factor for the fourth quarter was 87.3%, down just 0.8 percentage points compared to the prior year [32] Market Data and Key Metrics Changes - Volaris experienced a 13% year-over-year reduction in ASMs, with a significant impact on domestic capacity [26][27] - The company optimized its network by shifting capacity from domestic to international markets, with 40% of capacity in the international market by the end of 2024 [28] - The company noted volatility in markets like Mexico to Central America but observed good yields following capacity rationalization [28] Company Strategy and Development Direction - Volaris aims to operate over 90% of its fleet with NEO technology by 2030, focusing on reducing fleet ownership costs [18] - The company is committed to maximizing return on investment while navigating supply chain challenges and maintaining operational reliability [18][22] - Volaris plans to enhance its ancillary strategy by bundling core offerings into a single affinity portfolio to drive greater penetration [35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from GTF engine inspections and geopolitical uncertainties affecting travel demand, particularly in the US-Mexico corridor [23][63] - The company expects EBITDAR margins for 2025 to be between 34% and 36%, with ASM growth of around 13% [64] - Management remains optimistic about the long-term growth potential of the low-cost carrier model in Mexico, emphasizing the importance of rational capacity deployment [71][72] Other Important Information - Volaris ended 2024 with a liquidity position of $954 million, representing 30% of total operating revenues [57] - The company has a well-structured debt profile, with total debt standing at $3.9 billion, primarily composed of lease liabilities [58] - The average age of the fleet is 6.4 years, with plans for continued modernization and fleet expansion [60] Q&A Session Summary Question: Impact of US to Mexico VFR traffic on RASM - Management noted a reduction in traffic willingness from both US and Mexican sides, influenced by geopolitical factors and currency devaluation [76][81] Question: Cash inflow from sale and leaseback transactions - The cash inflow from sale and leaseback transactions is around $3 million per aircraft, with a notable difference from previous years due to variable lease expenses [83][86] Question: Easter shift impact on RASM - The Easter season bookings look solid, but the TRASM decline in the first quarter is primarily driven by FX changes and the timing of Easter [89][92] Question: CASM expectations for 2025 - CASM is expected to remain similar to 2024 levels, notwithstanding the first quarter's numbers [94] Question: Aircraft on ground projections - The average number of aircraft on ground is expected to be around 30 for 2025, with updates provided quarterly [125] Question: Salary and lease cost growth - Salaries are stable due to FX impacts, while variable lease costs increased due to the addition of aircraft [128][129]

4Q'24 Results February 2025 Disclaimer This presentation was prepared by Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (d/b/a Volaris, the "Company") with the purpose of providing interested parties certain financial and other information about the Company. This presentation is solely for discussion purposes and highlights basic information about the Company. Because it is a summary, it does not contain all the information that you should consider before investing in the securities of the Company. ...

Core Viewpoint - Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) reported its financial results for Q4 and full year 2024, highlighting a challenging year with engine inspections impacting operations, yet achieving significant profitability improvements and operational efficiency [2][6][20]. Financial Performance - For Q4 2024, total operating revenues were $835 million, a 7.1% decrease from Q4 2023, primarily due to currency depreciation and reduced available seat miles (ASMs) [11][12]. - The company achieved a net income of $46 million in Q4 2024, down 58.9% from $112 million in Q4 2023, with earnings per American Depositary Shares (ADS) of $0.40 [15][37]. - Full year 2024 net income was $126 million, significantly up from $8 million in 2023, with earnings per ADS of $1.10 [20][51]. - EBITDAR for Q4 2024 was $331 million, an increase of 17.8%, with an EBITDAR margin of 39.6%, up 8.4 percentage points [15][19]. Operational Metrics - Available seat miles (ASMs) decreased by 5.0% in Q4 2024 to 8.9 billion, while total capacity for the full year decreased by 12.6% to 34.0 billion [11][17]. - The load factor for Q4 2024 was 87.3%, a slight decrease of 0.8 percentage points compared to Q4 2023 [12][39]. - The average economic fuel cost decreased by 19.9% to $2.51 per gallon in Q4 2024 [13][39]. Cost Management - Total operating expenses for Q4 2024 were $718 million, a 2.3% decrease from Q4 2023, with operating expenses per available seat mile (CASM) increasing by 2.9% to $8.04 [11][37]. - CASM excluding fuel increased by 16.8% to $5.68, attributed to reduced operating leverage due to aircraft groundings [14][19]. Future Outlook - For 2025, Volaris anticipates a capacity growth of approximately 13%, while maintaining a focus on profitability and operational efficiency [4][24]. - The company expects EBITDAR margin to range between 34% to 36% for 2025, down from 36.3% in 2024 [24][25]. - The average exchange rate for 2025 is projected to be between Ps. 21.00 to 21.20 per U.S. dollar, reflecting a depreciation from the previous year [24][25]. Fleet and Capacity - As of Q4 2024, Volaris' fleet consisted of 143 aircraft, an increase of 14 from the previous year, with an average age of 6.4 years [27][28]. - The company added five new aircraft during the fourth quarter, enhancing its operational capacity [27].

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Core Insights - Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) reported its preliminary traffic results for January 2025, highlighting a year-over-year increase in ASM capacity and RPMs, but a decrease in load factor [1][2]. Traffic Performance - In January 2025, Volaris' ASM capacity increased by 4.7% year-over-year, while RPMs grew by 2.9% [2]. - Domestic RPMs rose by 0.9%, and international RPMs increased by 5.9% [2]. - The overall load factor decreased by 1.5 percentage points year-over-year to 86.6% [2]. Passenger Statistics - Volaris transported 2.6 million passengers in January 2025 [2]. - Domestic passengers totaled 1.833 million, a 3.5% increase from January 2024, while international passengers reached 764 thousand, up 6.2% [4]. Capacity and Future Outlook - For the full year 2025, Volaris plans to grow total ASMs by 13% to 15% compared to 2024, with a focus on network expansion [4]. - Despite this growth, overall capacity is expected to remain flat compared to 2023 due to recovery from Pratt & Whitney engine-related issues [4]. - Domestic capacity in Mexico is projected to be around 11% below 2023 levels, while international capacity is expected to increase by approximately 20% compared to 2023 [4]. Management Commentary - The CEO of Volaris noted a softness in VFR traffic to the U.S. in late January, attributed to geopolitical uncertainty, prompting adjustments in base fares to stimulate demand [3].

Core Insights - Controladora Vuela (VLRS) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, continuing a solid history of performance in the Zacks Transportation - Airline industry [1] Earnings Performance - Controladora Vuela has a strong track record of exceeding earnings estimates, with an average surprise of 74.21% over the last two quarters [2] - In the last reported quarter, the company achieved earnings of $0.32 per share, surpassing the Zacks Consensus Estimate of $0.19 per share, resulting in a surprise of 68.42% [3] - For the previous quarter, the company was expected to earn $0.05 per share but delivered $0.09 per share, yielding a surprise of 80% [3] Earnings Estimates and Predictions - Recent earnings estimates for Controladora Vuela have been revised upward, indicating positive sentiment among analysts [4] - The Zacks Earnings ESP for the company is currently positive at +4.27%, suggesting bullish expectations for near-term earnings [7] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced positive surprises nearly 70% of the time [5] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6] - A positive Earnings ESP combined with a Zacks Rank of 3 indicates a strong possibility of an earnings beat [7]

Company Analysis - Controladora Vuela Compañía de Aviación, S A B de C V (NYSE: VLRS) stands out in the Passenger Airlines sector as a company worth reviewing [1] - The company has garnered attention from analysts who hold a beneficial long position in its shares through stock ownership, options, or other derivatives [1] Analyst Perspective - The analysis of VLRS is based on the independent opinions of the analyst, who is not receiving compensation for the review other than from Seeking Alpha [1] - The analyst has no business relationship with any company mentioned in the article, ensuring an unbiased perspective [1] Disclosure - Seeking Alpha emphasizes that past performance is not indicative of future results and does not provide investment recommendations or advice [2] - The views expressed in the analysis may not reflect those of Seeking Alpha as a whole, and the platform is not a licensed securities dealer, broker, or investment adviser [2] - Analysts contributing to Seeking Alpha include both professional and individual investors who may not be licensed or certified by any regulatory body [2]

Core Insights - Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) reported its preliminary traffic results for December 2024, highlighting a decrease in ASM capacity and a stable load factor despite ongoing engine inspections [1][2]. Traffic Performance - In December 2024, Volaris transported 2.8 million passengers with a load factor of 87.6%, which is a 2.2 percentage points increase compared to the previous year [2][4]. - RPMs for December 2024 declined by 2.1% year-over-year, with domestic RPMs down 8.3% and international RPMs up 9.0% [2][4]. - Year-to-date (YTD) total RPMs decreased by 11.8% from 33,449 million in 2023 to 29,505 million in 2024 [4]. Capacity and Load Factor - Volaris' ASM capacity decreased by 4.5% year-over-year, attributed to Pratt & Whitney engine inspections, but was slightly better than forecasted due to recovering more engines than anticipated [2][4]. - The load factor for domestic flights improved to 91.1%, up 1.8 percentage points from the previous year, while the international load factor increased to 82.9%, up 3.7 percentage points [4]. Operational Strategy - The CEO of Volaris emphasized the company's commitment to operational performance and customer satisfaction, achieving a 99% completion rate for the year despite challenges [3][4]. - The company aims to maintain network stability as it completes the required engine inspections, indicating a focus on reliability for customers [2][3]. Year-to-Date Summary - For the year 2024, domestic RPMs totaled 18,161 million, down 19.0% from 22,422 million in 2023, while international RPMs increased to 11,344 million, a 2.9% rise from 11,027 million [4]. - YTD ASMs decreased by 12.6%, from 38,890 million in 2023 to 33,990 million in 2024 [4].

Core Insights - Volaris reported a decrease in ASM capacity by 3.7% year-over-year in November 2024, attributed to Pratt & Whitney engine inspections and fewer aircraft groundings [2] - The company transported 2.6 million passengers in November, with a load factor of 86.8%, reflecting a 3.0 percentage point decrease from the previous year [2] - RPMs declined by 6.9% year-over-year, with domestic RPMs down 10.5% and international RPMs remaining effectively flat [2] Traffic Results - Domestic RPMs for November 2024 were 1,554 million, down from 1,736 million in November 2023, marking a decrease of 10.5% [2] - International RPMs were 963 million, slightly down by 0.3% from 967 million in November 2023 [2] - Total RPMs for November 2024 were 2,518 million, down 6.9% from 2,703 million in November 2023 [2] Capacity Metrics - Domestic ASMs were 1,688 million, a decrease of 9.6% from 1,867 million in November 2023 [2] - International ASMs increased by 6.0% to 1,212 million from 1,143 million in November 2023 [2] - Total ASMs for November 2024 were 2,899 million, down 3.7% from 3,011 million in November 2023 [2] Load Factor Analysis - The domestic load factor was 92.1%, down from 93.0% in November 2023, a decrease of 0.9 percentage points [2] - The international load factor was 79.5%, down 5.0 percentage points from 84.5% in November 2023 [2] - The overall load factor for November 2024 was 86.8%, a decrease of 3.0 percentage points from 89.8% in November 2023 [2] Passenger Statistics - Domestic passengers totaled 1,882 thousand in November 2024, down 8.1% from 2,047 thousand in November 2023 [2] - International passengers were 668 thousand, slightly up by 0.2% from 667 thousand in November 2023 [2] - Total passengers for November 2024 were 2,550 thousand, down 6.0% from 2,714 thousand in November 2023 [2] Management Commentary - The President and CEO of Volaris indicated that demand remains solid, particularly in the domestic market, and the company is strategically investing in the transborder market [3] - The company added transborder capacity in November in preparation for the December high season [3] - Volaris is managing low-season demand elasticity through capacity adjustments as necessary [3]