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Volaris Reports Financial Results for the Second Quarter 2024: Net Income of USD $10 million

Volaris Reports Financial Results for the Second Quarter 2024: Net Income of USD  million

MEXICO CITY, , July 22, 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, today reports its unaudited financial results for the second quarter of 20241.

Second Quarter 2024 Highlights
(All figures are reported in U.S. dollars and compared to 2Q 2023 unless otherwise noted)

  • 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 increased 6.1% to $2.86 per gallon.
  • CASM ex fuel increased 11% to $5.33 cents.
  • EBITDAR of $261 million, a 23% increase.
  • EBITDAR margin was 35.9%, an increase of 8.8 percentage points.
  • Total cash, cash equivalents, restricted cash, and short-term investments totaled $774 million, representing 24% of the last twelve months’ total operating revenue.
  • Net debt-to-LTM EBITDAR2 ratio decreased to 2.9x, compared to 3.1x in the previous quarter.

Enrique Beltranena, President & Chief Executive Officer, said: “Volaris continues to perform positively, achieving our highest absolute EBITDAR for a second quarter despite the fleet groundings due to accelerated engine inspections. Volaris’ unwavering focus on execution and efficient cost control has enabled us to deliver strong results. Our mitigation plan is on track with favorable outcomes, and we have largely achieved our goals since the inspections began. In fact, we are improving our full-year ASM guidance to -14%3. We currently have a well-balanced market mix, with an increased presence in the cross-border market that has strengthened our TRASM, and our booking curves indicate ongoing robust performance for the summer high season.

With recent updates from Pratt & Whitney, we are cautiously optimistic about this evolving situation, but we recognize that the engine’s time on wing remains a challenge. Looking ahead, as grounded aircraft gradually return to our productive fleet, we expect recent unit revenue levels to remain resilient and remain committed to prudent and rational growth, prioritizing profitability.”

1 The financial information, unless otherwise indicated, is presented in accordance with the International Financial Reporting Standards (IFRS).
2 Includes short-term investments.
3 See detailed guidance on page 5.

Second Quarter 2024 Consolidated Financial and Operating Highlights
(All figures are reported in U.S. dollars and compared to 2Q 2023 unless otherwise noted)

  Second Quarter
Consolidated Financial Highlights 2024 2023 Var.
Total operating revenue (millions) 726 782 (7.2%)
TRASM (cents) 8.89 7.92 12.2%
ASMs (million, scheduled & charter) 8,173 9,873 (17.2%)
Load Factor (RPMs/ASMs) 85.5% 84.6% 0.9 pp
Passengers (thousand, scheduled & charter) 7,087 8,373 (15.4%)
Fleet (at the end of the period) 136 123 13
Total operating expenses (millions) 660 731 (9.7%)
CASM (cents) 8.08 7.40 9.1%
CASM ex fuel (cents) 5.33 4.82 10.7%
Adjusted CASM ex fuel (cents)4 4.86 4.43 9.6%
Operating income (EBIT) (millions) 66 51 29.4 %
% EBIT Margin 9.1% 6.5% 2.6 pp
Net income (millions) 10 6 66.7 %
% Net income Margin 1.4% 0.7% 0.7 pp
EBITDAR (millions) 261 212 23.1 %
% EBITDAR Margin 35.9% 27.1% 8.8 pp
Net debt-to-EBITDAR5 2.9x 3.5x (0.6x)

Reconciliation of CASM to Adjusted CASM ex fuel:

  Second Quarter
Reconciliation of CASM 2024 2023 Var.
CASM (cents) 8.08 7.40 9.1%
Fuel expense (2.75) (2.58) 6.9%
CASM ex fuel 5.33 4.82 10.7%
Aircraft and engine variable lease expenses6 (0.56) (0.41) 36.2%
Sale and lease back gains 0.09 0.02 >100%
Adjusted CASM ex fuel 4.86 4.43 9.6%
Note: Figures are rounded for convenience purposes. Further detail found in financial and operating indicators.
4 Excludes fuel expense, aircraft and engine variable lease expenses and sale and lease-back gains.
5 Includes short-term investments.
6 Aircraft redeliveries.


Second Quarter 2024

(All figures are reported in U.S. dollars and compared to 2Q 2023 unless otherwise noted)

Total operating revenue amounted to $726 million in the quarter, driven by strong domestic demand and an improvement in total operating revenue per passenger. This represents a 7.2% decrease, notwithstanding the 17% reduction in total capacity resulting from aircraft-on-ground (AOG) due to Pratt & Whitney’s accelerated engine inspections.

Total capacity, in terms of available seat miles (ASMs), was 8.2 billion.

Booked passengers totaled 7.1 million, a 15% decrease. Mexican domestic and international booked passengers decreased 18% and 4.9%, respectively.

The load factor for the quarter reached 85.5%, representing an increase of 0.9 percentage points.

TRASM rose 12% to $8.89 cents, and total operating revenue per passenger stood at $102, representing a 9.8% increase.

The average base fare was $49, a 4.3% increase. The total ancillary revenue per passenger was $53, reflecting a 15% improvement. Ancillary revenue represented 52% of total operating revenue, up by 2.6 percentage points.

Total operating expenses were $660 million, representing 91% of total operating revenue.

CASM totaled $8.08 cents, a 9.1% increase when compared to the same period of 2023.

The average economic fuel cost rose 6.1% to $2.86 per gallon.

CASM ex fuel increased 11% to $5.33 cents, mainly due to the AOG due to Pratt and Whitney’s engine preventive accelerated inspections.

Comprehensive financing result represented an expense of $52 million, compared to a $43 million expense in the same period of the previous year.

Income tax expense was $4 million, compared to a $2 million expense registered in the second quarter of 2023.

Net income in the quarter was $10 million, with an earnings per ADS of $9 cents.

EBITDAR for the quarter was $261 million, a 23% improvement, primarily attributable to strong unit revenues and efficient cost control, partially offset by an increase in fuel prices. EBITDAR margin stood at 35.9%, up by 8.8 percentage points.

Balance Sheet, Liquidity, and Capital Allocation

For the quarter, net cash flow provided by operating activities was $304 million. Net cash flow used in investing and financing activities was $141 million and $149 million, respectively.

As of June 30, 2024, cash, cash equivalents, restricted cash, and short-term investments were $774 million, representing 24% of the last twelve months’ total operating revenue.

The financial debt amounted to $638 million, while total lease liabilities stood at $3,003 million, resulting in a net debt of $2,8677 million.

Net debt-to-LTM EBITDAR7 ratio stood at 2.9x, compared to 3.1x in the previous quarter and 3.5x in the same period of 2023.

The average exchange rate for the period was Ps.17.21 per U.S. dollar, a 2.9% appreciation. At the end of the second quarter, the exchange rate stood at Ps.18.38 per U.S. dollar.

7 Includes short-term investments.

2024 Guidance

For the third quarter of 2024, the Company expects:

  3Q’24 3Q’23 (1)
3Q’24 Guidance    
ASM growth (YoY) ~ -14% +8.2%
TRASM ~$9.3 cents $8.37 cents
CASM ex fuel ~$5.6 cents $4.91 cents
EBITDAR margin ~33% 24.4%
Average USD/MXN rate Ps.18.40 to 18.60 Ps.17.06
Average U.S. Gulf Coast jet fuel price $2.60 to $2.70 $2.77

(1) For convenience purposes, actual reported figures for 3Q’23 are included.

For the full year 2024, the Company expects:

  Updated Guidance Prior Guidance
Full Year 2024 Guidance    
ASM growth (YoY) ~ -14% -16% to -18%
EBITDAR margin 32% to 34% 32% to 34%
CAPEX (2) $400 million $400 million
Average USD/MXN rate Ps.17.80 to 18.00 Ps.17.30 to 17.50
Average U.S. Gulf Coast jet fuel price $2.60 to $2.70 $2.60 to $2.70

(2) CAPEX net of financed fleet predelivery payments.

The third quarter and full year 2024 outlook presented above includes the compensation that Volaris expects to receive for the projected grounded aircraft resulting from the GTF engine removals, 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 second quarter, Volaris added two A321neo aircraft to its fleet, bringing the total number of aircraft to 136. At the end of the quarter, Volaris’ fleet had an average age of 6.1 years and an average seating capacity of 197 passengers per aircraft. Of the total fleet, 60% of the aircraft are New Engine Option (NEO) models.

  Second Quarter First Quarter
Total Fleet 2024 2023 Var. 2024 Var.
CEO          
A319 3 3 3
A320 42 40 2 42
A321 10 10 10
NEO          
A320 51 51 51
A321 30 19 11 28 2
Total aircraft at the end of the period 136 123 13 134 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: Tuesday, July 23, 2024
Time: 9:00 am Mexico City / 11:00 am New York (USA) (ET)
Webcast link: Volaris Webcast (View the live webcast)
Dial-in & Live Q&A link: Volaris Dial-in and Live Q&A

  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 201 and its fleet from 4 to 137 aircraft. Volaris offers more than 500 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 US Securities Act of 1933, as amended, and Section 21E of the US 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 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 US 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, restricted cash, 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, restricted cash, and short-term investments as the sum of cash, cash equivalents, restricted cash, 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.

Shareholders have the ability to receive a hard copy of the 2023 audited consolidated financial statements free of charge upon request.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Financial and Operating Indicators

 
Unaudited
(U.S. dollars, except otherwise indicated)
Three months ended June 30, 2024 Three months ended June 30, 2023 Variance
Total operating revenues (millions) 726 782 (7.2%)
Total operating expenses (millions) 660 731 (9.7%)
EBIT (millions) 66 51 29.4%
EBIT margin 9.1% 6.5% 2.6 pp
Depreciation and amortization (millions) 150 121 24.0%
Aircraft and engine variable lease expenses (millions) 45 40 12.5%
Net income (millions) 10 6 66.7%
Net income margin 1.4% 0.7% 0.7 pp
Earnings per share (1):      
Basic 0.01 0.00 89.6%
Diluted 0.01 0.00 89.1%
Earnings per ADS*:      
Basic 0.09 0.05 89.6%
Diluted 0.09 0.05 89.1%
Weighted average shares outstanding:      
Basic 1,150,766,440 1,152,974,446 (0.2%)
Diluted 1,165,976,677 1,165,244,334 0.1%
Financial Indicators      
Total operating revenue per ASM (TRASM) (cents) (2) 8.89 7.92 12.2%
Average base fare per passenger 49 47 4.3%
Total ancillary revenue per passenger (3) 53 46 15.3%
Total operating revenue per passenger 102 93 9.8%
Operating expenses per ASM (CASM) (cents) (2) 8.08 7.40 9.1%
CASM ex fuel (cents) (2) 5.33 4.82 10.7%
Adjusted CASM ex fuel (cents) (2) (4) 4.86 4.43 9.6%
Operating Indicators      
Available seat miles (ASMs) (millions) (2) 8,173 9,873 (17.2%)
Domestic 4,868 6,614 (26.4%)
International 3,305 3,260 1.4%
Revenue passenger miles (RPMs) (millions) (2) 6,988 8,348 (16.3%)
Domestic 4,388 5,643 (22.2%)
International 2,600 2,705 (3.9%)
Load factor (5) 85.5% 84.6% 0.9 pp
Domestic 90.1% 85.3% 4.9 pp
International 78.7% 83.0% (4.3 pp)
Booked passengers (thousands) (2) 7,087 8,373 (15.4%)
Domestic 5,324 6,518 (18.3%)
International 1,763 1,855 (4.9%)
Departures (2) 42,495 51,127 (16.9%)
Block hours (2) 109,638 132,965 (17.5%)
Aircraft at end of period 136 123 13
Average aircraft utilization (block hours) 13.05 13.27 (1.7%)
Fuel gallons accrued (millions) 77.93 94.04 (17.1%)
Average economic fuel cost per gallon (6) 2.86 2.70 6.1%
Average exchange rate 17.21 17.72 (2.9%)
Exchange rate at the end of the period 18.38 17.07 7.6%
*Each ADS represents ten CPOs and each CPO represents a financial interest in one Series A share.
(1) The basic and diluted loss or earnings per share are calculated in
accordance with IAS 33. Basic loss or 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.
(2) Includes schedule and charter.
(3) Includes “Other passenger revenues” and “Non-passenger revenues”.
(4) Excludes fuel expense, aircraft and engine variable lease expenses and sale
and lease-back gains.
(5) Includes schedule.
(6) Excludes Non-creditable VAT.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Financial and Operating Indicators

 
Unaudited
(U.S. dollars, except otherwise indicated)
Six months ended June 30, 2024 Six months ended June 30, 2023 Variance
Total operating revenues (millions) 1,494 1,513 (1.3%)
Total operating expenses (millions) 1,324 1,493 (11.3%)
EBIT (millions) 170 20 >100%
EBIT margin 11.4% 1.3% 10.1 pp
Depreciation and amortization (millions) 283 240 17.9%
Aircraft and engine variable lease expenses (millions) 42 76 (44.7%)
Net income (loss) (millions) 44 (65) N/A
Net income (loss) margin 2.9% (4.3%) 7.2 pp
Earnings (loss) per share (1):      
Basic 0.04 (0.06) N/A
Diluted 0.04 (0.06) N/A
Earnings (loss) per ADS*:      
Basic 0.38 (0.57) N/A
Diluted 0.37 (0.56) N/A
Weighted average shares outstanding:      
Basic 1,151,108,712 1,152,750,608 (0.1%)
Diluted 1,165,976,677 1,165,147,164 0.1%
Financial Indicators      
Total operating revenue per ASM (TRASM) (cents) (2) 9.12 7.81 16.7%
Average base fare per passenger 52 47 9.4%
Total ancillary revenue per passenger (3) 55 44 24.5%
Total operating revenue per passenger 107 91 16.7%
Operating expenses per ASM (CASM) (cents) (2) 8.08 7.71 4.8%
CASM ex fuel (cents) (2) 5.25 4.74 10.8%
Adjusted CASM ex fuel (cents) (2) (4) 5.09 4.36 16.8%
Operating Indicators      
Available seat miles (ASMs) (millions) (2) 16,390 19,362 (15.3%)
Domestic 9,636 13,151 (26.7%)
International 6,754 6,211 8.7%
Revenue passenger miles (RPMs) (millions) (2) 14,134 16,415 (13.9%)
Domestic 8,717 11,189 (22.1%)
International 5,417 5,226 3.7%
Load factor (5) 86.2% 84.8% 1.4 pp
Domestic 90.5% 85.1% 5.4 pp
International 80.2% 84.2% (4.0 pp)
Booked passengers (thousands) (2) 14,010 16,559 (15.4%)
Domestic 10,309 12,958 (20.4%)
International 3,702 3,601 2.8%
Departures (2) 82,923 101,318 (18.2%)
Block hours (2) 219,001 263,514 (16.9%)
Aircraft at end of period 136 123 13
Average aircraft utilization (block hours) 12.89 13.39 (3.8%)
Fuel gallons accrued (millions) 157.15 186.27 (15.6%)
Average economic fuel cost per gallon (6) 2.93 3.07 (4.5%)
Average exchange rate 17.10 18.21 (6.1%)
Exchange rate at the end of the period 18.38 17.07 7.6%
*Each ADS represents ten CPOs and each CPO represents a financial interest in one Series A share
(1) The basic and diluted loss or earnings per share are calculated in
accordance with IAS 33. Basic loss or 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.
(2) Includes schedule and charter.
(3) Includes “Other passenger revenues” and “Non-passenger revenues”.
(4) Excludes fuel expense, aircraft and engine variable lease expenses and sale
and lease-back gains.
(5) Includes schedule.
(6) Excludes Non-creditable VAT.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Consolidated Statement of Operations

 
Unaudited
(In millions of U.S. dollars)
Three months ended June 30, 2024 Three months ended June 30, 2023 Variance
Operating revenues:      
Passenger revenues 693 746 (7.1%)
Fare revenues 349 396 (11.9%)
Other passenger revenues 344 350 (1.7%)
       
Non-passenger revenues 33 36 (8.3%)
Cargo 5 5 0.0%
Other non-passenger revenues 28 31 (9.7%)
       
Total operating revenues 726 782 (7.2%)
       
Other operating income (48) (3) >100%
Fuel expense 224 255 (12.2%)
Aircraft and engine variable lease expenses 45 40 12.5%
Salaries and benefits 99 96 3.1%
Landing, take-off and navigation expenses 117 127 (7.9%)
Sales, marketing and distribution expenses 32 38 (15.8%)
Maintenance expenses 11 25 (56.0%)
Depreciation and amortization 50 31 61.3%
Depreciation of right of use assets 100 90 11.1%
Other operating expenses 30 32 (6.3%)
Operating expenses 660 731 (9.7%)
       
Operating income 66 51 29.4%
       
Finance income 12 9 33.3%
Finance cost (72) (57) 26.3%
Exchange gain, net 8 5 60.0%
Comprehensive financing result (52) (43) 20.9%
       
Income before income tax 14 8 75.0%
Income tax expense (4) (2) 100.0%
Net income 10 6 66.7%
       
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Consolidated Statement of Operations

 
Unaudited
(In millions of U.S. dollars)
Six months ended June 30, 2024 Six months ended
June 30, 2023
Variance
Operating revenues:      
Passenger revenues 1,425 1,447 (1.5%)
Fare revenues 724 782 (7.4%)
Other passenger revenues 701 665 5.4%
       
Non-passenger revenues 69 66 4.5%
Cargo 11 10 10.0%
Other non-passenger revenues 58 56 3.6%
       
Total operating revenues 1,494 1,513 (1.3%)
       
Other operating income (93) (4) >100%
Fuel expense 464 576 (19.4%)
Aircraft and engine variable lease expenses 42 76 (44.7%)
Salaries and benefits 201 187 7.5%
Landing, take-off and navigation expenses 244 237 3.0%
Sales, marketing and distribution expenses 78 74 5.4%
Maintenance expenses 48 51 (5.9%)
Depreciation and amortization 85 63 34.9%
Depreciation of right of use assets 198 177 11.9%
Other operating expenses 57 56 1.8%
Operating expenses 1,324 1,493 (11.3%)
       
Operating income 170 20 >100%
       
Finance income 24 16 50.0%
Finance cost (134) (115) 16.5%
Exchange gain (loss), net 2 (8) N/A
Comprehensive financing result (108) (107) 0.9%
       
Income (loss) before income tax 62 (87) N/A
Income tax (expense) benefit (18) 22 N/A
Net income (loss) 44 (65) 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 provides additional details about the components of total ancillary revenue for the quarter:
Unaudited
(In millions of U.S. dollars)
Three months ended June 30, 2024 Three months ended June 30, 2023 Variance
       
Other passenger revenues 344 350 (1.7%)
Non-passenger revenues 33 36 (8.3%)
Total ancillary revenues 377 386 (2.3%)
       
Booked passengers (thousands) (1) 7,087 8,373 (15.4%)
       
Total ancillary revenue per passenger 53 46 15.3%
       
(1) Includes schedule and charter.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Reconciliation of Total Ancillary Revenue per Passenger
The following table provides additional details about the components of total ancillary revenue for the first half of the year:
Unaudited
(In millions of U.S. dollars)
Six months ended June 30, 2024 Six months ended June 30, 2023 Variance
       
Other passenger revenues 701 665 5.4%
Non-passenger revenues 69 66 4.5%
Total ancillary revenues 770 731 5.3%
       
Booked passengers (thousands) (1) 14,010 16,559 (15.4%)
       
Total ancillary revenue per passenger 55 44 24.5%
       
(1) Includes schedule and charter.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Consolidated Statement of Financial Position

 

(In millions of U.S. dollars)
As of June 30, 2024
Unaudited
As of December 31, 2023
Audited
Assets    
Cash, cash equivalents and restricted cash 758 774
Short-term investments 16 15
Total cash, cash equivalents, restricted cash, and short-term investments (1) 774
Accounts receivable, net 226 251
Inventories 16 16
Guarantee deposits 200 148
Prepaid expenses and other current assets 57 44
Total current assets 1,273 1,248
Right of use assets 2,436 2,338
Rotable spare parts, furniture and equipment, net 954 805
Intangible assets, net 21 16
Derivatives financial instruments 1 2
Deferred income taxes 249 236
Guarantee deposits 441 462
Other long-term assets 43 39
Total non-current assets 4,145 3,898
Total assets 5,418 5,146
Liabilities and equity    
Unearned transportation revenue 459 343
Accounts payable 209 250
Accrued liabilities 184 163
Other taxes and fees payable 271 262
Income taxes payable 14 8
Financial debt 325 220
Lease liabilities 357 373
Other liabilities 6 2
Total short-term liabilities 1,825 1,621
Financial debt 313 433
Accrued liabilities 10 14
Employee benefits 15 15
Deferred income taxes 16 16
Lease liabilities 2,646 2,518
Other liabilities 307 286
Total long-term liabilities 3,307 3,282
Total liabilities 5,132 4,903
Equity    
Capital stock 248 248
Treasury shares (12) (12)
Contributions for future capital increases
Legal reserve 17 17
Additional paid-in capital 284 282
Accumulated deficit (104) (148)
Accumulated other comprehensive loss (147) (144)
Total equity 286 243
Total liabilities and equity 5,418 5,146
(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
(In millions of U.S. dollars)
Three months ended June 30, 2024 Three months ended June 30, 2023
     
Net cash flow provided by operating activities 304 159
Net cash flow used in investing activities (141) (102)
Net cash flow used in financing activities* (149) (109)
Increase (decrease) in cash, cash equivalents and restricted cash 14 (52)
Net foreign exchange differences (8) 3
Cash, cash equivalents and restricted cash at beginning of period 752 704
Cash, cash equivalents and restricted cash at end of period 758 655
*Includes aircraft rental payments of $143 million and $131 million for the three months ended June 30, 2024, and 2023, respectively.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Consolidated Statement of Cash Flows – Cash Flow Data Summary

 
Unaudited
(In millions of U.S. dollars)
Six months ended June 30, 2024 Six months ended June 30, 2023
     
Net cash flow provided by operating activities 549 367
Net cash flow used in investing activities (238) (211)
Net cash flow used in financing activities* (320) (219)
Decrease in cash, cash equivalents and restricted cash (9) (63)
Net foreign exchange differences (7) 6
Cash, cash equivalents and restricted cash at beginning of period 774 712
Cash, cash equivalents and restricted cash at end of period 758 655
*Includes aircraft rental payments of $284 million and $258 million for the six months ended June 30, 2024, and 2023, respectively.

Volaris Reports Financial Results for the Second Quarter 2024: Net Income of USD $10 million

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Originally published at https://www.einpresswire.com/article/729650308/volaris-reports-financial-results-for-the-second-quarter-2024-net-income-of-usd-10-million