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Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (symbol: VLRS), widely known as Volaris, is a leading low-cost airline company headquartered in Santa Fe, Álvaro Obregón, Mexico City. As a prominent player in the aviation industry, Volaris operates extensive flight routes connecting major cities across Mexico, the United States, Central America, and South America. The airline's primary hubs are located in Guadalajara, Mexico City, and Tijuana, with additional focus cities in Cancún, León, and Monterrey.
Volaris is renowned for its budget-friendly pricing model, often offering promotional fares that rival long-distance bus tickets in Mexico. This strategy has not only democratized air travel but has also positioned the airline as a preferred choice for cost-conscious travelers. The company operates an impressive average of 500 daily flight segments, serving 44 cities in Mexico, 22 cities in the United States, four in Central America, and two in South America.
In 2022, Volaris solidified its leadership as the domestic market leader in Mexico by the number of passengers flown, setting the stage for continued growth. The airline's revenue comes from multiple streams, including the air transportation of passengers, which is recognized when the service is rendered or when non-refundable tickets expire. Additionally, Volaris generates income from non-passenger revenues such as cargo services.
Recent financial updates indicate a robust performance. Despite challenges such as the accelerated inspections of Pratt & Whitney engines leading to some aircraft groundings, Volaris has maintained its commitment to customer service and operational excellence. The company recently announced financial results for Q1 2024, reporting 6.9 million booked passengers, with capacity adjustments reflecting the current operational insights.
Investors and stakeholders are encouraged to stay informed through regular updates and detailed reports provided by the company. For further inquiries, the Investor Relations contact is Ricardo Martínez (ir@volaris.com), and the Media Contact is Israel Álvarez (ialvarez@gcya.net).
Volaris has appointed José Alejandro de Iturbide Gutiérrez as the new Chief Legal Officer, effective June 16, 2021. Gutiérrez brings extensive legal experience, previously serving as General Counsel at Grupo Financiero Citibanamex, GE, and Barclays Capital. His appointment underscores Volaris' commitment to regulatory compliance and corporate governance, aimed at enhancing shareholder value. The company has significantly expanded since its inception in 2006, now operating 181 routes with a fleet of 88 aircraft, connecting various cities across Mexico, the U.S., and Central America.
On June 2, 2021, Volaris (NYSE: VLRS) reported its preliminary traffic results for May 2021, showing a resurgence in demand. Domestic traffic surged by 16.3% compared to May 2019, while international traffic increased by 19.3%. The airline transported 2.2 million passengers, reflecting a 12% uptick from pre-pandemic levels. Volaris maintained a high load factor of 87.8% and increased capacity in both domestic and international markets. These results suggest strong recovery trends for the airline.
On May 25, 2021, the FAA downgraded Mexico's aviation safety rating from Category 1 to Category 2, impacting the oversight of the Mexican Federal Civil Aviation Authority (AFAC). This downgrade does not reflect on Volaris' safety profile, which remains unchanged. New service routes and aircraft additions are prohibited during AFAC's corrective measures. Volaris can still grow its fleet under its Mexican certificate. Additionally, codeshare partner Frontier will withdraw its code from Volaris flights, but customers can still book tickets through both airlines' websites. Volaris supports efforts to restore Mexico's safety rating.
Volaris (NYSE: VLRS) has revised its second-quarter 2021 guidance, indicating notable improvements in sales for both domestic and international markets. Projected capacity is set at 110% to 113% of 2019 levels, with an expected positive cash generation of US$800,000 to US$1,000,000 per day. The company anticipates total operating revenues per available seat mile to rise by 8% to 10% compared to 2019. The EBITDAR margin is projected to be in the low to mid-thirty percent range, reflecting improved operational performance.
Volaris (NYSE: VLRS) reported April 2021 traffic results, showing a recovery in domestic demand with a 17.8% increase in ASMs compared to April 2019. Total capacity reached 107.3% of April 2019 levels, while demand measured by RPMs was at 104.6%. The airline transported 1.9 million passengers, 3.3% higher than in April 2019, with a load factor of 82.4%. However, international capacity declined by 16.7% due to continued COVID-19 restrictions. For Q2 2021, Volaris expects to operate approximately 110% of its 2019 capacity.
On April 30, 2021, Volaris (NYSE: VLRS) announced the filing of its annual report on Form 20-F for the fiscal year ended December 31, 2020, with the SEC. Volaris is an ultra-low-cost carrier with operations in Mexico, the U.S., and Central America, expanding its fleet from 4 to 87 aircraft since March 2006. The airline offers low base fares, catering to cost-conscious travelers with 170 routes and up to 410 daily flight segments. For further details or to request hard copies of financial statements, shareholders can contact Investor Relations.
On April 27, 2021, Volaris (NYSE: VLRS) announced the resolutions from its annual shareholders meeting held on April 26, 2021. Key outcomes included the approval of financial statements showing a net loss of MXN$4.29 billion for 2020, allocation of losses to retained earnings, and the decision not to allocate resources for share buybacks in 2021. All board members and key executives were ratified, including CEO Enrique Javier Beltranena Mejicano. The company continues to uphold governance standards, ensuring compliance with Securities Market Law.
Volaris (NYSE: VLRS) reported Q1 2021 financial results, revealing total operating revenues of Ps.6,403 million, down 18.2% year-over-year. Despite a net loss of Ps.733 million, ancillary revenues increased by 10.1%, representing 51.2% of total revenues. Operating expenses grew 8.0%, primarily driven by increased costs per available seat mile (CASM) and peso depreciation. The airline continued to adapt to COVID-19's impact with liquidity preservation efforts and plans for fleet optimization, including the addition of 8 A320NEO aircraft. Cash and cash equivalents stood at Ps.8,718 million.
On April 20, 2021, Volaris (NYSE: VLRS) announced plans to expand its fleet by adding eight A320 NEO aircraft on long-term leases, increasing its total to at least 98 aircraft. The decision leverages favorable leasing market conditions amidst competitor reductions. With the COVID-19 vaccination efforts boosting air travel confidence, five of these new aircraft are set to enter service this summer, primarily enhancing Volaris' position in the Mexican domestic market. This move aligns with the company's sustainability strategy and aims to capitalize on anticipated market opportunities in the latter half of the year.
Volaris (NYSE: VLRS) announced new liquidity preservation measures on April 14, 2021, following its ongoing response to the COVID-19 pandemic. The airline aims to secure an additional US$100M in working capital relief, having already achieved US$87M through various agreements. The focus includes optimizing the fleet plan to align with post-pandemic travel demands. The company continues to pursue initiatives to enhance liquidity and reduce fleet costs, although it cautions that future performance may vary significantly based on various factors.
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