Volaris Reports March 2022 Traffic Results: 60% YoY demand growth with an 87% Load Factor

Rhea-AI Summary

Volaris (NYSE: VLRS) reported a significant increase in traffic for March 2022, with capacity up by 61.2% YoY and demand rising 60.4% YoY. The airline transported 2.5 million passengers, a 61.8% increase from the previous year. Domestic and international passenger demand surged by 45.6% and 123.0%, respectively. For Q1 2022, Volaris' capacity rose 49.8% YoY with a load factor of 83.5%, reflecting strong performance in matching capacity to demand despite rising fuel costs. The average fuel price increased by 69.8% to $3.60 per gallon.

Positive

• Capacity increased 61.2% YoY in March 2022.
• Demand rose 60.4% YoY for the same month.
• 2.5 million passengers transported, up 61.8% YoY.
• Q1 2022 load factor improved to 83.5%, up 5.4 pp YoY.
• Strong growth in domestic (45.6%) and international (123.0%) passenger demand.

Negative

• Load factor decreased by 0.4 pp YoY to 86.5% despite high demand.
• Average fuel price surged by 69.8%, impacting profitability.

MEXICO CITY, April 6, 2022 /PRNewswire/ -- Volaris (the "Company") (NYSE: VLRS and BMV: VOLAR), the ultra-low-cost airline serving Mexico, the United States, Central, and South America, reports its March 2022 preliminary traffic results.

In March, Volaris' capacity (measured in ASMs) increased 61.2% YoY, while demand (measured in RPMs) increased 60.4% YoY; the result was a load factor of 86.5% (-0.4 pp YoY). During the month, Volaris transported 2.5 million passengers, a 61.8% YoY increase. Passenger demand (RPMs) in the domestic Mexican and international markets increased 45.6% and 123.0%, respectively, as compared to March 2021.

In the first quarter, Volaris' capacity increased 49.8% YoY or 0.5% QoQ. Load factor increased 5.4 pp YoY, to 83.5%, driven by RPM growth of 60.1% YoY. Volaris transported 7.0 million passengers in the quarter.

Commenting on March traffic figures, Volaris' President and CEO Enrique Beltranena said: "Our strong March 2022 traffic numbers further demonstrate the overall strength in demand of our existing markets and our ability to match that demand with new capacity. Volaris continued a disciplined effort to gradually mitigate a percentage of the fuel price increase through base fares and ancillaries, while carefully maintaining healthy load factors." 

	Mar 2022	Mar 2021	Variation	YTD Mar 2022	YTD Mar 2021	Variation
RPMs (million, scheduled & charter)
Domestic	1,763	1,211	45.6%	4,895	3,256	50.4%
International	636	285	123.0%	1,833	946	93.7%
Total	2,399	1,496	60.4%	6,728	4,202	60.1%
ASMs (million, scheduled & charter)
Domestic	1,955	1,369	42.8%	5,682	4,038	40.7%
International	820	353	132.3%	2,379	1,342	77.3%
Total	2,775	1,722	61.2%	8,061	5,380	49.8%
Load Factor (%, scheduled, RPMs/ASMs)
Domestic	90.2%	88.5%	1.7 pp	86.2%	80.6%	5.5 pp
International	77.6%	80.8%	(3.2) pp	77.1%	70.5%	6.5 pp
Total	86.5%	86.9%	(0.4) pp	83.5%	78.1%	5.4 pp
Passengers (thousand, scheduled & charter)
Domestic	2,050	1,337	53.4%	5,676	3,597	57.8%
International	456	212	115.0%	1,313	674	94.8%
Total	2,506	1,549	61.8%	6,989	4,271	63.6%
Economic Jet Fuel Price (USD per gallon, preliminary)
Average	3.60	2.12	69.8%	3.15	1.93	63.2%

The information included in this report has not been audited and it does not provide information on the company's future performance. Volaris' future performance depends on many factors, and it cannot be inferred that any period's performance or its comparison year over year will be an indicator of a similar performance in the future.

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 188 and its fleet from 4 to 105 aircraft. Volaris offers more than 500 daily flight segments on routes that connect 44 cities in Mexico and 27 cities in the United States, Central and South America with one of the youngest fleet 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 eleven consecutive years. For more information, please visit: www.volaris.com.

Investor Relations Contact 
Félix Martínez / Naara Cortés Gallardo / ir@volaris.com 
Media Contact 
Gabriela Fernández / gabriela.fernandez@volaris.com 

View original content:https://www.prnewswire.com/news-releases/volaris-reports-march-2022-traffic-results-60-yoy-demand-growth-with-an-87-load-factor-301519401.html

SOURCE Volaris

FAQ

What were Volaris' traffic results in March 2022?

In March 2022, Volaris reported a 61.8% increase in passengers, transporting 2.5 million individuals.

How much did Volaris' capacity increase in March 2022?

Volaris' capacity increased by 61.2% year-over-year in March 2022.

What was the load factor for Volaris in March 2022?

The load factor for March 2022 was 86.5%, a decrease of 0.4 percentage points year-over-year.

What fuel price increase did Volaris report in March 2022?

Volaris reported an average fuel price increase of 69.8%, reaching $3.60 per gallon.

How did Volaris' first quarter 2022 performance compare to the previous year?

In Q1 2022, Volaris' capacity rose by 49.8% year-over-year with a load factor of 83.5%.