Volaris Reports Financial Results for the First Quarter 2025
MEXICO CITY, April 28, 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, today reports its unaudited financial results for the first quarter 2025(1) .
First Quarter 2025 Highlights
(All figures are reported in U.S. dollars and compared to 1Q 2024 unless otherwise noted)
-- Net loss of $51 million. Loss per American Depositary Shares $(ADS.AU)$ of $45 cents. -- Total operating revenues of $678 million, a 12% decrease. -- Total revenue per available seat mile (TRASM) decreased 17% to $7.76 cents. -- Available seat miles (ASMs) increased by 6% to 8.7 billion. -- Total operating expenses of $688 million, representing 101% of total operating revenue. -- Total operating expenses per available seat mile (CASM) decreased 3% to $7.88 cents. -- Average economic fuel cost decreased 13% to $2.63 per gallon. -- CASM ex fuel increased 5% to $5.40 cents. -- EBITDAR of $203 million, a 14% decrease. -- EBITDAR margin was 29.9%, a decrease of 0.7 percentage points. -- Total cash, cash equivalents, and short-term investments totaled $862 million, representing 28% of the last twelve months' total operating revenue. -- Net debt-to-LTM EBITDAR2 ratio increased to 2.7x, compared to 2.6x in the previous quarter.
Enrique Beltranena, President & Chief Executive Officer, said: "Volaris remains focused, as always, on disciplined execution as we navigate a period of geopolitical and economic uncertainty. Our tactical capacity decisions will continue to be grounded in two guiding priorities: customer demand and sustained profitability. We can operate and execute changes in our network with flexibility, agility, and resilience, leveraging our cost structure and financial strength.
We will continue delivering on our value proposition: offering low fares, maintaining an attractive and reliable schedule, and providing relevant ancillary options that enhance the travel experience. We are confident in our ability to prepare for a fast recovery once uncertainty eases. As we have demonstrated in the past, we are preparing for a strong comeback."
1 The financial information, unless otherwise indicated, is presented in accordance with the International Financial Reporting Standards (IFRS).
(2 Includes short-term investments.)
First Quarter 2025 Consolidated Financial and Operating Highlights
(All figures are reported in U.S. dollars and compared to 1Q 2024 unless otherwise noted)
First Quarter
2025 2024 Var.
Total operating revenues (millions) 678 768 (11.7%)
TRASM (cents) 7.76 9.34 (17.0%)
ASMs (millions, scheduled & charter) 8,737 8,217 6.3%
Load Factor (scheduled, RPMs/ASMs) 85.4% 87.0% (1.6 pp)
Passengers (thousands, scheduled & charter) 7,418 6,924 7.1%
Fleet (at the end of the period) 145 134 11
---------------------------------------------- ------ ----- ---------
Total operating expenses (millions) 688 664 3.6 %
CASM (cents) 7.88 8.08 (2.5%)
CASM ex fuel (cents) 5.40 5.16 4.5%
Adjusted CASM ex fuel (cents)(3) 4.87 5.32 (8.5%)
---------------------------------------------- ------ ----- ---------
Operating (loss) income $(EBIT)$ (millions) (10) 104 N/A
% EBIT margin (1.5%) 13.5% (15.0 pp)
---------------------------------------------- ------ ----- ---------
Net (loss) income (millions) (51) 33 N/A
% Net (loss) income margin (7.6%) 4.3% (11.9 pp)
---------------------------------------------- ------ ----- ---------
EBITDAR (millions) 203 235 (13.6%)
% EBITDAR margin 29.9% 30.6% (0.7 pp)
---------------------------------------------- ------ ----- ---------
Net debt-to-LTM EBITDAR(4) 2.7x 3.1x (0.4x)
Reconciliation of CASM to Adjusted CASM ex fuel:
First Quarter
Reconciliation of CASM 2025 2024 Var.
CASM (cents) 7.88 8.08 (2.5%)
Fuel expense (2.48) (2.92) (15.0%)
------------------------------------------------- ------ ------ -------
CASM ex fuel 5.40 5.16 4.5%
Aircraft and engine variable lease expenses(5) (0.61) 0.04 N/A
Sale and lease back gains 0.08 0.12 (36.5%)
------------------------------------------------- ------ ------ -------
Adjusted CASM ex fuel 4.87 5.32 (8.5%)
(Note: Figures are rounded for convenience purposes.
Further detail found in financial and operating indicators.)
(3 Excludes fuel expense, aircraft and engine variable
lease expenses and sale and lease-back gains.)
(4 Includes short-term investments.)
(5 Aircraft redeliveries.)
First Quarter 2025
(All figures are reported in U.S. dollars and compared to 1Q 2024 unless otherwise noted)
Total operating revenues for the quarter amounted to $678 million, a 11.7% decrease, primarily due to the depreciation of the Mexican peso against the U.S. dollar and a lower total operating revenue per passenger.
Total capacity, in terms of available seat miles (ASMs), was 8.7 billion, representing a 6.3% increase.
Booked passengers totaled 7.4 million, a 7.1% increase. Mexican domestic booked passengers increased 8.5%, while international booked passengers increased 3.7%.
The load factor for the quarter reached 85.4%, representing a 1.6 percentage point decrease.
TRASM declined 17.0% to $7.76 cents, and total operating revenue per passenger stood at $91, decreasing 17.6%.
The average base fare per passenger stood at $39, a 28.8% decrease. The total ancillary revenue per passenger was $53, reflecting a 6.9% decline. Ancillary revenues accounted for 57.8% of total operating revenues.
Total operating expenses were $688 million, representing 101% of total operating revenue.
CASM totaled $7.88 cents, representing a 2.5% decline.
The average economic fuel cost decreased by 12.5% to $2.63 per gallon.
CASM ex fuel increased 4.5% to $5.40 cents, primarily due to higher redelivery costs, compared to a one-time benefit recognized in the first quarter of 2024 from the remeasurement of redelivery accrual related to aircraft lease extensions. These costs were partially offset by a weaker Mexican peso and higher capacity.
Comprehensive financing result represented an expense of $66 million, compared to a $57 million expense in the same period of 2024.
Income tax benefit was $25 million, compared to a $14 million expense registered in the first quarter of 2024.
Net loss in the quarter was $51 million, with a loss per ADS of $45 cents.
EBITDAR for the quarter was $203 million, a 13.6% decline. EBITDAR margin stood at 29.9%, down by 0.7 percentage points.
Balance Sheet, Liquidity, and Capital Allocation
As of March 31, 2025, cash, cash equivalents, and short-term investments were $862 million, representing 28.3% of the last twelve months' total operating revenue.
Net cash flow provided by operating activities was $157 million. Net cash flow used in investing and financing activities was $6 million and $212 million, respectively.
The financial debt amounted to $766 million, reflecting a 5.4% decrease, while total lease liabilities remained essentially flat at $3,061 million.
Net debt-to-LTM EBITDAR(6) ratio stood at 2.7x, compared to 2.6x in the previous quarter and 3.1x in the same period of 2024.
The average exchange rate for the period was Ps.20.42 per U.S. dollar and Ps.20.32 per U.S. dollar at the end of the first quarter, reflecting a depreciation of 20.2% and 21.8% of the Mexican peso, respectively.
(6 Includes short-term investments.)
2025 Updated Guidance
Considering ongoing macroeconomic uncertainty, Volaris is not providing full-year 2025 margin guidance. The Company will continue to closely monitor demand trends and economic developments and will provide an update once visibility improves.
For the full year 2025, the Company expects:
Updated Guidance Prior Guidance
Full Year 2025 Guidance
-------------------------- ---------------- --------------
ASM growth (YoY) 8% to 9% 13%
CAPEX (1) $250 million $250 million
-------------------------- ---------------- --------------
(1) CAPEX net of financed fleet predelivery payments.
For the second quarter of 2025, the Company expects:
2Q'25 2Q'24 (2()
2Q'25 Guidance
----------------------------------------- ------------------ -----------
ASM growth (YoY) 9% to 10% -17.2%
TRASM $7.4 to $7.5 cents $8.89 cents
CASM ex fuel $5.7 to $5.8 cents $5.33 cents
EBITDAR margin 24% to 25% 35.9%
----------------------------------------- ------------------ -----------
Average USD/MXN rate Ps. 20.20 to 20.40 Ps. 17.21
Average U.S. Gulf Coast jet fuel price $2.00 to $2.10 $2.47
(2) For convenience purposes, actual reported figures
for 2Q'24 are included.
The second quarter and full year 2025 outlook presented above includes the compensation that Volaris expects to receive for the projected grounded aircraft resulting from the GTF engine inspections, 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 first quarter, Volaris retired one A319ceo aircraft and added two A320neo, and one A321neo aircraft to its fleet, bringing the total number of aircraft to 145. At the end of the quarter, Volaris' fleet had an average age of 6.4 years and an average seating capacity of 198 passengers per aircraft. Of the total fleet, 61% of the aircraft are New Engine Option $(NEO)$ models.
First Quarter Fourth Quarter
Total Fleet 2025 2024 Var. 2024 Var.
CEO
--------------------------------------- ----- ---- ---- -------- ------
A319 2 3 (1) 3 (1)
A320 44 42 2 44 -
A321 10 10 - 10 -
--------------------------------------- ----- ---- ---- -------- ------
NEO
--------------------------------------- ----- ---- ---- -------- ------
A320 55 51 4 53 2
A321 34 28 6 33 1
--------------------------------------- ----- ---- ---- -------- ------
Total aircraft at the end of the
period 145 134 11 143 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 Contact
Ricardo Martínez / ir@volaris.com
Media Contact
Israel Álvarez / ialvarez@gcya.net
Conference Call Details
Date: Monday, April 28, 2025 Time: 11:00 a.m. Mexico City / 1:00 p.m. New York $(USA)$ $(ET)$ Webcast link: Volaris Webcast (View the live webcast) Dial-in & Live Volaris Dial-in and Live Q&A Q&A link: 1. Click on the call link and complete the online registration form. 2. 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. 3. Select a method for joining the call: 1. Dial-In: A dial-in number and unique PIN are displayed to connect directly from your phone. 2. 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 229 and its fleet from 4 to 145 aircraft. Volaris offers more than 550 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 U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. 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 2025 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 U.S. 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 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 and short-term investments as the sum of cash, cash equivalents 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.
Controladora Vuela Compañía de Aviación,
S.A.B. de C.V. and Subsidiaries
Financial and Operating Indicators
Unaudited (U.S.
dollars, except
otherwise Three months ended Three months ended
indicated) March 31, 2025 March 31, 2024 Variance
Total operating
revenues
(millions) 678 768 (11.7%)
Total operating
expenses
(millions) 688 664 3.6%
EBIT (millions) (10) 104 N/A
EBIT margin (1.5%) 13.5% (15.0 pp)
Depreciation and
amortization
(millions) 159 134 18.7%
Aircraft and engine
variable lease
expenses
(millions) 54 (3) N/A
Net (loss) income
(millions) (51) 33 N/A
Net (loss) income
margin (7.6%) 4.3% (11.9 pp)
(Loss) earnings per
share (1) :
Basic (0.04) 0.03 N/A
Diluted (0.04) 0.03 N/A
(Loss) earnings per
ADS*:
Basic (0.45) 0.29 N/A
Diluted (0.44) 0.29 N/A
Weighted average
shares outstanding:
Basic 1,149,802,368 1,151,450,983 (0.1%)
Diluted 1,164,583,159 1,165,976,677 (0.1%)
---------------------- ------------------- -------------------- -----------
Financial Indicators
---------------------- ------------------- -------------------- -----------
Total operating
revenue per ASM
(TRASM) (cents)
(2) 7.76 9.34 (17.0%)
Average base fare
per passenger 39 54 (28.8%)
Total ancillary
revenue per
passenger (3) 53 57 (6.9%)
Total operating
revenue per
passenger 91 111 (17.6%)
Operating expenses
per ASM (CASM)
(cents) (2) 7.88 8.08 (2.5%)
CASM ex fuel (cents)
(2) 5.40 5.16 4.5%
Adjusted CASM ex
fuel (cents) (2)
(4) 4.87 5.32 (8.5%)
---------------------- ------------------- -------------------- -----------
Operating Indicators
Available seat miles
(ASMs) (millions)
(2) 8,737 8,217 6.3%
Domestic 5,108 4,768 7.1%
International 3,629 3,449 5.2%
Revenue passenger
miles (RPMs)
(millions) (2) 7,462 7,146 4.4%
Domestic 4,536 4,329 4.8%
International 2,926 2,817 3.9%
Load factor (5) 85.4% 87.0% (1.6 pp)
Domestic 88.8% 90.8% (2.0 pp)
International 80.6% 81.7% (1.0 pp)
Booked passengers
(thousands) (2) 7,418 6,924 7.1%
Domestic 5,408 4,985 8.5%
International 2,010 1,939 3.7%
Departures (2) 44,577 40,428 10.3%
Block hours (2) 116,134 109,363 6.2%
Aircraft at end of
period 145 134 11
Average aircraft
utilization (block
hours) 13.00 12.73 2.1%
Fuel gallons accrued
(millions) 81.56 79.22 3.0%
Average economic
fuel cost per
gallon (6) 2.63 3.01 (12.5%)
Average exchange
rate 20.42 17.00 20.2%
Exchange rate at the
end of the period 20.32 16.68 21.8%
---------------------- ------------------- -------------------- -----------
(*Each ADS represents ten CPOs and each CPO represents
a financial interest in one Series A share)
(1) The basic and (2) Includes scheduled and charter. (3) Includes
diluted loss or "Other passenger revenues" and "Non-passenger
earnings per share revenues". (4) Excludes fuel expense, aircraft and
are calculated in engine variable lease expenses and sale (and
accordance with IAS lease-back gains.) (5) Includes scheduled. (6)
33. Basic loss or Excludes Non-creditable VAT.
earnings per share
is calculated by
dividing net loss
or earnings by the
average number of
shares outstanding
(excluding treasury
shares). Diluted
loss or earnings
per share is
calculated by
dividing net loss
or earnings by the
average number of
shares outstanding
adjusted for
dilutive effects.
Controladora Vuela Compañía de Aviación,
S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Operations
Unaudited (In millions of Three months ended Three months ended
U.S. dollars) March 31, 2025 March 31, 2024 Variance
Operating revenues:
Passenger revenues 645 732 (11.9%)
Fare revenues 286 375 (23.7%)
Other passenger revenues 359 357 0.6%
Non-passenger revenues 33 36 (8.3%)
Cargo 5 5 0.0%
Other non-passenger
revenues 28 31 (9.7%)
Total operating revenues 678 768 (11.7%)
Other operating income (51) (45) 13.3%
Fuel expense 217 240 (9.6%)
Aircraft and engine
variable lease expenses 54 (3) N/A
Salaries and benefits 104 102 2.0%
Landing, take-off and
navigation expenses 122 127 (3.9%)
Sales, marketing and
distribution expenses 34 45 (24.4%)
Maintenance expenses 28 37 (24.3%)
Depreciation and
amortization 52 35 48.6%
Depreciation of right of
use assets 107 99 8.1%
Other operating expenses 21 27 (22.2%)
Total operating expenses 688 664 3.6 %
Operating (loss) income (10) 104 N/A
Finance income 12 12 0.0%
Finance cost (80) (62) 29.0%
Exchange gain (loss), net 2 (7) N/A
Comprehensive financing
result (66) (57) 15.8 %
(Loss) income before
income tax (76) 47 N/A
Income tax benefit
(expense) 25 (14) N/A
Net (loss) income (51) 33 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 shows quarterly additional detail
about the components of total ancillary revenue:
Unaudited (In millions of Three months ended Three months ended
U.S. dollars) March 31, 2025 March 31, 2024 Variance
Other passenger revenues 359 357 0.6%
Non-passenger revenues 33 36 (8.3%)
Total ancillary revenues 392 393 (0.3%)
Booked passengers
(thousands) (1) 7,418 6,924 7.1%
Total ancillary revenue
per passenger 53 57 (6.9%)
(1) Includes scheduled and charter.
Controladora Vuela Compañía de Aviación,
S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Financial Position
As of March 31, As of December 31,
(In millions of U.S. dollars) 2025 Unaudited 2024 Audited
Assets
Cash and cash equivalents 847 908
Short-term investments 15 46
Total cash, cash equivalents and
short-term investments (1) 862 -
Accounts receivable, net 212 139
Inventories 17 17
Guarantee deposits 232 227
Derivative financial instruments - -
Prepaid expenses and other current
assets 42 45
Total current assets 1,365 1,382
Right of use assets 2,459 2,470
Rotable spare parts, furniture and
equipment, net 1,054 1,070
Intangible assets, net 25 26
Derivatives financial instruments - -
Deferred income taxes 329 286
Guarantee deposits 415 426
Other long-term assets 39 43
Total non-current assets 4,321 4,321
Total assets 5,686 5,703
Liabilities and equity
Unearned transportation revenue 375 343
Accounts payable 142 164
Accrued liabilities 239 222
Other taxes and fees payable 326 274
Income taxes payable 2 29
Financial debt 241 284
Lease liabilities 395 391
Other liabilities 96 63
Total short-term liabilities 1,816 1,770
Financial debt 525 526
Accrued liabilities 8 8
Employee benefits 13 13
Deferred income taxes 17 18
Lease liabilities 2,666 2,670
Other liabilities 326 333
Total long-term liabilities 3,555 3,568
Total liabilities 5,371 5,338
Equity
Capital stock 248 248
Treasury shares (13) (13)
Contributions for future capital
increases - -
Legal reserve 17 17
Additional paid-in capital 284 283
Accumulated deficit (73) (22)
Accumulated other comprehensive loss (148) (148)
Total equity 315 365
Total liabilities and equity 5,686 5,703
(1) Non-GAAP measure.
Controladora Vuela Compañía de Aviación,
S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Cash Flows -- Cash Flow
Data Summary
Unaudited Three months ended Three months ended
(In millions of U.S. dollars) March 31, 2025 March 31, 2024
Net cash flow provided by operating
activities 157 245
Net cash flow used in investing
activities (6) (97)
Net cash flow used in financing
activities* (212) (171)
Decrease in cash and cash
equivalents (61) (23)
Net foreign exchange differences - 1
Cash and cash equivalents at
beginning of period 908 774
Cash and cash equivalents at end of
period 847 752
-------------------------------------- ------------------ ------------------
(*Includes aircraft rental payments of $152 million
and $141 million for the three months ended March
31, 2025, and 2024, respectively.)
(END) Dow Jones Newswires
April 28, 2025 08:00 ET (12:00 GMT)
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