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Controladora Vuela (VLRS) shares rallied 5.5% in the last trading session to close at $5.91. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.7% gain over the past four weeks. The uptick in share price was due to the impressive load factor (% of seats filled by passengers) of 87% maintained by the Mexican carrier in August despite challenges. Load factor in August was flat year over year. The airline transpo ...

MEXICO CITY, Sept. 04, 2024 (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 August 2024 preliminary traffic results. In August 2024, Volaris' ASM capacity decreased by 15.1% year-over-year due to the accelerated Pratt & Whitney engine inspections and the resulting aircraft groundings. Volaris transported 2.6 million ...

TORONTO and FARNHAM, United Kingdom, Aug. 27, 2024 (GLOBE NEWSWIRE) -- Volaris Group Inc. ("Volaris"), today, announced the acquisition of Zupa Tech Limited ("Zupa") and its flagship solution, Caternet. Joining IndiCater Limited ("IndiCater"), a Volaris company, this deal further builds the organizations' leadership in the foodservice and hospitality sector in the UK. Caternet, founded in 2004 by the late Jerry Brand, is a leading provider of catering management solutions, serving a variety of sectors inclu ...

Core Insights - Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) released its 2023 Integrated Annual Report titled "Total Vision: Exploring New Perspectives" [1] Company Overview - Volaris is an ultra-low-cost carrier (ULCC) operating point-to-point services in Mexico, the United States, Central, and South America [3] - Since its inception in March 2006, Volaris has expanded its routes from 5 to over 214 and its fleet from 4 to 137 aircraft [3] - The company operates more than 495 daily flight segments connecting 44 cities in Mexico and 29 cities in the United States, Central, and South America [3] - Volaris targets cost-conscious business and leisure travelers, as well as passengers visiting friends and relatives [3] - The company has received the ESR Award for Social Corporate Responsibility for fifteen consecutive years [3]

Volaris reported a 7% decline in revenue in the second quarter, driven by a 17% decline in available seat miles (capacity, in other words). Yield (total revenue per available seat mile, or TRASM) improved 12%, but revenue still missed by about 3%. On the cost side, total costs per available seat mile (or CASM) rose 9% to $0.081, while CASM ex-fuel rose 11% to $0.053. This was better than expected, with the company under-spending in areas like marketing and maintenance (no need to market for grounded flights ...

Financial Data and Key Metrics Changes - The company recorded total operating revenues of $726 million, a decrease of only 7% year-over-year despite a 17% reduction in capacity [27][30] - Net income rose to $10 million, translating to earnings per ADS of $0.09, with cash flow from operating activities at $304 million [29][30] - EBIT increased by 29% to $66 million, with an EBIT margin of 9.1%, while EBITDAR reached $261 million, a 23% increase [54] Business Line Data and Key Metrics Changes - TRASM increased by 12% year-over-year to $0.0889, with a load factor of 85.5% compared to 84.6% a year ago [17] - Ancillary revenues comprised more than 50% of total revenues, with ancillary revenue per passenger rising 15% year-over-year to $53 [43] - The average number of aircraft grounded for engine inspections was 31 during the quarter, with two new A321neo aircraft received [32] Market Data and Key Metrics Changes - The company expects total revenue for the full year of 2024 to be close to 2023 levels, despite a double-digit reduction in capacity [17] - In the US market, increased capacity has bolstered consolidated unit revenue and profitability, with July load factors and fares showing solid improvement [19] - The company anticipates ongoing robust performance in the second half of the year, with bookings indicating trends slightly above expectations [20] Company Strategy and Development Direction - The company is committed to prudent and rational growth, prioritizing profitability as grounded aircraft return to service [13] - The strategy includes shifting ASMs into the cross-border market to maximize profitability, leveraging the unique capacity to convert bus passengers in Mexico [14][24] - The company aims to maintain a competitive advantage through cost control, with approximately 70% of costs being variable [41][54] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the recovery of engine availability and turnaround times, with a forecasted reduction in ASM guidance from a previous estimate [11][39] - The management highlighted the importance of maintaining a stable schedule and improving reliability, leading to fewer cancellations [21] - The company expects to gradually restore capacity while focusing on profitable growth, with no expectation to reach 2023 capacity levels next year [47][93] Other Important Information - The company ended the quarter with a liquidity position of $758 million, representing 23% of the last 12 months' total operating revenues [55] - Average economic fuel costs fell by 4.5% to $9.93 per gallon, while CASM ex-fuel was $0.0525, reflecting a 10.8% increase [56] - The company expects an ASM reduction of around 40% year-over-year for the full year of 2024 [58] Q&A Session Summary Question: Industry's ability to flex up capacity during peak demand periods - Management noted that domestic capacity is constrained in both low and high seasons, with a stable schedule implemented throughout the year [63] Question: Full year capacity expectations - Management confirmed that the capacity reduction is primarily due to the ability to acquire new spare engines, with expectations of 32 engines returning in the second half of the year [87] Question: Insights on servicing the Tulum airport - Operations at Tulum airport are still in the early stages, with flights expected to start later in the fourth quarter [109] Question: v.club membership performance - The v.club membership accounts for about 15% of sales, with a focus on building customer loyalty and repeat business [118] Question: Maintenance costs normalization - Management indicated that maintenance costs are expected to normalize, with timing being a key factor in quarterly fluctuations [122]

Second Quarter 2024 Highlights 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 ...

A n a l y s t C o v e r a g e | I n s t i t u t i o n | A n a l y s t | | --- | --- | | AIR C o n t r ol To w e r | N eil Gly n n | | B a n k o f A m e ric a | R o g e rio A r a u j o | | B a n o r t e | J o s é E s pitia | | B a r cla y s | P a blo M o n siv ais | | B r a d e s c o | Vic t o r Miz u s a ki | | BBVA | Pablo Abraham | | B T G P a c t u al | L u c a s M a r q uio ri | | Citi | Stephen Trent | | C o w e n | H ela n e B e c k e r | | D e u t s c h e B a n k | Mic h a el Lin e n b e r g | | E v ...