troladora Vuela pania de Aviacion(US:VLRS)2025-10-28 16:00Financial Data and Key Metrics Changes - Total operating revenues for Q3 2025 were $784 million, a 4% decrease year-over-year [23] - EBITDA reached $264 million with a margin of 33.6%, aligned with guidance [25] - Net profit was $6 million, translating to earnings per ADS of $0.05 [25] - CASM was $0.079, virtually flat compared to Q3 2024, while CASM ex-fuel was $0.0548, up 2% [23][25] - The net debt to EBITDA ratio stood at 3.1 times, with a total liquidity position of $794 million [26][27] Business Line Data and Key Metrics Changes - Domestic load factor reached 89.8%, consistent with last year's levels, while international load factor was at 77% [12][14] - Average ancillary revenue per passenger for Q3 was $56, consistently above $50 for eight consecutive quarters [14] - TRASM for Q3 was $0.0865, down 7.7% year-over-year but improved from previous quarters [15] Market Data and Key Metrics Changes - Stable domestic demand was observed, with a rational supply environment supporting healthier yields [4] - Cross-border demand showed a steady recovery, with booking trends improving month-over-month [4][14] - The company noted an inflection point in the US-Mexico transborder market, with sales above last year's levels since mid-August [38] Company Strategy and Development Direction - The company is focused on maintaining cost efficiency while adapting to market conditions, with a capacity growth outlook of approximately 7% for 2025 [5][22] - Volaris aims to enhance its ultra-low-cost carrier model by expanding ancillary products and optimizing distribution channels [10][19] - The company is committed to controlling growth with discipline, aligning capacity with market demand [6][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in demand, particularly in the cross-border market, and expects solid booking trends for the holiday season [12][14] - The company anticipates a healthier yield environment due to supply rationalization in the domestic market [22] - Management emphasized the importance of flexibility in fleet planning to respond to demand trends and market conditions [5][30] Other Important Information - The company has a favorable fleet plan with an order book of 122 aircraft, primarily A320neo to A321neo models [30] - Volaris is enhancing customer service through technology, with 79% of customer interactions now handled digitally [21] - The company launched its in-house loyalty program, Altitude, which has seen strong early response [17] Q&A Session Summary Question: Can you elaborate on the stronger-than-normal seasonality in international markets and the inflection point in the US-Mexico transborder market? - Management noted that since mid-August, sales in the US-Mexico transborder market have been above last year's levels, indicating improved demand and capacity management [38] Question: What are the expected lease returns next year and how do they compare to this year? - The company is budgeting for 17 re-deliveries next year compared to 7 this year, emphasizing the importance of managing capacity in line with consumer demand [40] Question: How should we think about the potential RASM uplift from new initiatives? - Management expects a positive year-over-year impact on RASM from new products starting in 2026, with specific targets to be communicated in future guidance [42][44] Question: What is the expected number of grounded aircraft throughout 2026? - The average number of grounded aircraft is expected to improve to around 32-33 next year, with a goal of no material impacts by the end of 2027 [52][61] Question: How does the company view competition in 2026? - Management anticipates that competition will remain rational, supporting a healthier fare environment, with low to mid single-digit growth budgeted for the domestic market [66]