Volaris Reports August 2024 Traffic Results: 87% Load Factor

Rhea-AI Summary

Volaris, a leading ultra-low-cost carrier, reported its August 2024 traffic results. The company experienced a 15.1% decrease in ASM capacity year-over-year due to accelerated Pratt & Whitney engine inspections and resulting aircraft groundings. Despite these challenges, Volaris transported 2.6 million passengers with a load factor of 87.0%, flat against last year's levels.

Key highlights include:

• RPMs decreased by 15.3%, with domestic RPMs down 22.0% and international RPMs flat
• Mexican domestic ASMs decreased by 22.5%, while international ASMs remained stable
• The company reaffirmed its annual capacity guidance, indicating an approximate 14% reduction
• Volaris concluded the summer high season with strong operational performance and demand

CEO Enrique Beltranena stated that the strategic fleet mitigation plan is on track and delivering favorable outcomes, despite having almost 30% of the fleet grounded.

Positive

• Maintained a high load factor of 87.0% despite capacity reductions
• Strong demand and operational performance during the summer high season
• Strategic fleet mitigation plan delivering favorable outcomes
• International RPMs and ASMs remained relatively stable

Negative

• 15.1% decrease in ASM capacity year-over-year
• 15.3% decrease in total RPMs
• 22.0% decrease in domestic RPMs
• 15.3% decrease in total passengers transported
• Almost 30% of the fleet grounded due to engine inspections
• Reaffirmed annual capacity guidance indicating a 14% reduction

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 passengers during the month at a load factor of 87.0%, flat against last year’s levels. RPMs for the month decreased by 15.3%, with Mexican domestic RPMs down by 22.0%, while international RPMs were effectively flat.

Enrique Beltranena, Volaris’ President and CEO said: "Our strategic fleet mitigation plan is on track and continues to deliver favorable outcomes. We have met our goals since the engine inspections began, and we are managing the situation with almost 30% of our fleet on the ground. We reaffirm our annual capacity guidance, which indicates an approximate 14% reduction. Volaris concluded the summer high season with a very solid operational performance and strong demand, which drove high load factors. Please note that comparable load factor figures from August through December of last year already include the consolidation of flights driven by the first round of accelerated P&W engine inspections."

	August 2024		August 2023		Variance		YTD August 2024		YTD August 2023		Variance
RPMs (million, scheduled & charter)
Domestic	1,635		2,097		-22.0	%	12,009		15,360		-21.8	%
International	966		972		-0.6	%	7,417		7,222		2.7	%
Total	2,601		3,069		-15.3	%	19,426		22,582		-14.0	%
ASMs (million, scheduled & charter)
Domestic	1,820		2,348		-22.5	%	13,275		17,851		-25.6	%
International	1,168		1,173		-0.4	%	9,101		8,558		6.3	%
Total	2,989		3,521		-15.1	%	22,376		26,409		-15.3	%
Load Factor (%, RPMs/ASMs)
Domestic	89.8	%	89.3	%	0.5 pp		90.5	%	86.0	%	4.4 pp
International	82.7	%	82.9	%	(0.2) pp		81.5	%	84.4	%	(2.9) pp
Total	87.0	%	87.2	%	(0.1) pp		86.8	%	85.5	%	1.3 pp
Passengers (thousand, scheduled & charter)
Domestic	1,958		2,418		-19.0	%	14,246		17,732		-19.7	%
International	651		662		-1.6	%	5,058		4,968		1.8	%
Total	2,609		3,080		-15.3	%	19,304		22,701		-15.0	%

The information included in this report has not been audited and does not provide information on the Company’s future performance. Volaris’ future performance depends on several factors. It cannot be inferred that any period’s performance or its comparison year-over-year will indicate a similar performance in the future. Figures are rounded for convenience purposes.

Glossary

Revenue passenger miles (RPMs): Number of seats booked by passengers multiplied by the number of miles flown.

Available seat miles (ASMs): Number of seats available for passengers multiplied by the number of miles flown.

Load factor: RPMs divided by ASMs and expressed as a percentage.

Passengers: The total number of passengers booked on all flight segments.

Investor Relations Contact
Ricardo Martínez / ir@volaris.com

Media Contact
Israel Álvarez / ialvarez@gcya.net

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 214 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.

FAQ

What was Volaris' load factor in August 2024?

Volaris reported a load factor of 87.0% in August 2024, which was flat compared to the same period last year.

How many passengers did Volaris transport in August 2024?

Volaris transported 2.6 million passengers in August 2024.

What caused the decrease in Volaris' ASM capacity in August 2024?

Volaris' ASM capacity decreased by 15.1% year-over-year due to accelerated Pratt & Whitney engine inspections and resulting aircraft groundings.

How did Volaris' domestic and international RPMs perform in August 2024?

In August 2024, Volaris' domestic RPMs decreased by 22.0%, while international RPMs remained effectively flat.

What is Volaris' annual capacity guidance for 2024?

Volaris reaffirmed its annual capacity guidance for 2024, indicating an approximate 14% reduction.