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Volaris Reports November 2024 Traffic Results: Load Factor of 87%

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Volaris reported its November 2024 traffic results, showing a 3.7% decrease in ASM capacity year-over-year due to Pratt & Whitney engine inspections. The airline transported 2.6 million passengers with an 86.8% load factor, down 3.0 percentage points from last year. RPMs declined 6.9%, with domestic RPMs falling 10.5% while international RPMs remained relatively stable.

The company's CEO, Enrique Beltranena, noted solid demand across the network, particularly in the domestic market, and highlighted strategic investments in transborder capacity for the December high season. Year-to-date performance remains strong despite GTF engine inspection challenges.

Volaris ha riportato i risultati del traffico di novembre 2024, mostrando una diminuzione del 3,7% della capacità ASM rispetto all'anno precedente a causa delle ispezioni dei motori Pratt & Whitney. La compagnia aerea ha trasportato 2,6 milioni di passeggeri con un fattore di carico dell'86,8%, in calo di 3,0 punti percentuali rispetto all'anno scorso. Le RPM sono diminuite del 6,9%, con le RPM domestiche in calo del 10,5% mentre le RPM internazionali sono rimaste relativamente stabili.

Il CEO dell'azienda, Enrique Beltranena, ha notato una solida domanda in tutto il network, in particolare nel mercato domestico, e ha evidenziato investimenti strategici nella capacità transfrontaliera per l'alta stagione di dicembre. Le performance da inizio anno rimangono forti nonostante le sfide legate alle ispezioni dei motori GTF.

Volaris reportó sus resultados de tráfico de noviembre de 2024, mostrando una disminución del 3,7% en la capacidad ASM año tras año debido a las inspecciones de motores Pratt & Whitney. La aerolínea transportó 2,6 millones de pasajeros con un factor de ocupación del 86,8%, una caída de 3,0 puntos porcentuales en comparación con el año pasado. Las RPM cayeron un 6,9%, con una caída del 10,5% en las RPM nacionales mientras las RPM internacionales permanecieron relativamente estables.

El CEO de la compañía, Enrique Beltranena, señaló una sólida demanda en toda la red, particularmente en el mercado nacional, y destacó las inversiones estratégicas en capacidad transfronteriza para la alta temporada de diciembre. El rendimiento acumulado se mantiene fuerte a pesar de los desafíos de las inspecciones de motores GTF.

볼라리스는 2024년 11월 교통 결과를 보고하며 Pratt & Whitney 엔진 점검으로 인해 전년 대비 3.7% 감소한 ASM 수용 능력을 보여주었습니다. 이 항공사는 260만 명의 승객을 수송했으며 86.8%의 적재율을 기록해 지난해보다 3.0 포인트 하락했습니다. RPM은 6.9% 감소했으며, 국내 RPM은 10.5% 감소한 반면 국제 RPM은 상대적으로 안정세를 유지했습니다.

회사의 CEO인 Enrique Beltranena는 네트워크 전반에 걸쳐 특히 국내 시장에서 탄탄한 수요를 확인했으며, 12월 성수기를 대비한 국경 간 수용 능력에 대한 전략적 투자를 강조했습니다. 올해 누적 성과는 GTF 엔진 점검 문제에도 불구하고 여전히 강세를 보이고 있습니다.

Volaris a publié ses résultats de trafic pour novembre 2024, montrant une baisse de 3,7% de la capacité ASM par rapport à l'année précédente en raison des inspections des moteurs Pratt & Whitney. La compagnie aérienne a transporté 2,6 millions de passagers avec un taux de charge de 86,8%, en baisse de 3,0 points de pourcentage par rapport à l'année dernière. Les RPM ont diminué de 6,9%, les RPM domestiques chutant de 10,5%, tandis que les RPM internationales sont restées relativement stables.

Le PDG de l'entreprise, Enrique Beltranena, a noté une demande solide sur l'ensemble du réseau, en particulier sur le marché national, et a souligné les investissements stratégiques dans la capacité transfrontalière pour la haute saison de décembre. Les performances depuis le début de l'année restent fortes malgré les défis liés aux inspections des moteurs GTF.

Volaris hat die Verkehrsergebnisse für November 2024 veröffentlicht und einen Rückgang der ASM-Kapazität um 3,7% im Vergleich zum Vorjahr aufgrund von Pratt & Whitney-Motorinspektionen festgestellt. Die Fluggesellschaft transportierte 2,6 Millionen Passagiere mit einem Auslastungsfaktor von 86,8%, was einem Rückgang von 3,0 Prozentpunkten im Vergleich zum Vorjahr entspricht. Die RPMs sanken um 6,9%, wobei die inländischen RPMs um 10,5% fielen, während die internationalen RPMs relativ stabil blieben.

Der CEO des Unternehmens, Enrique Beltranena, stellte eine starke Nachfrage im gesamten Netzwerk fest, insbesondere auf dem Inlandsmarkt, und hob strategische Investitionen in grenzüberschreitende Kapazitäten für die Hochsaison im Dezember hervor. Die Leistung seit Jahresbeginn bleibt trotz der Herausforderungen durch die GTF-Motorinspektionen stark.

Positive
  • Strong load factor maintained at 86.8% despite operational challenges
  • International RPMs remained stable with only 0.3% decline
  • Strategic expansion in transborder market for peak holiday season
Negative
  • Overall RPMs declined 6.9% year-over-year
  • Domestic RPMs decreased 10.5%
  • ASM capacity reduced by 3.7% due to engine inspections
  • Total passenger count decreased by 6.0% compared to previous year
  • Load factor decreased by 3.0 percentage points year-over-year

Insights

The November traffic report reveals mixed signals for Volaris. While the 3.7% decrease in capacity due to GTF engine inspections is concerning, the 86.8% load factor remains relatively strong despite the 3.0 percentage point year-over-year decline. The domestic market shows some weakness with 10.5% lower RPMs, but international operations remain stable.

The strategic focus on transborder markets ahead of the peak holiday season demonstrates proactive capacity management. However, investors should monitor the ongoing impact of engine inspections, as these operational disruptions could affect profitability. The gradual return of inspected engines suggests improving operational efficiency in the coming months.

The resilient domestic demand amid challenges and strategic capacity adjustments indicate effective management, though the overall 6.0% decline in total passengers warrants attention. The company's ability to maintain high load factors while managing capacity constraints showcases operational adaptability.

The GTF engine inspection impact continues to ripple through Volaris' operations, though the situation appears to be stabilizing. The return of the initial batch of inspected engines is a positive development, helping to offset some capacity constraints. The divergence between domestic and international performance is notable - while domestic RPMs declined 10.5%, international remained steady with just a 0.3% decrease.

The strategic capacity reallocation towards transborder routes before the December peak season shows smart network planning. The 6.0% increase in international ASMs suggests confidence in cross-border market opportunities. The maintenance of a strong 86.8% load factor despite operational challenges indicates robust demand fundamentals and effective yield management strategies.

MEXICO CITY, Dec. 05, 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 November 2024 preliminary traffic results.

In November, Volaris' ASM capacity decreased by 3.7% year-over-year due to the Pratt & Whitney engine inspections offset by fewer aircraft groundings following the return of the initial batch of inspected engines. Volaris transported 2.6 million passengers during the month with a load factor of 86.8%, a 3.0 pp decrease from last year. RPMs for the month declined by 6.9%, with Mexican domestic RPMs down 10.5%, while international RPMs were effectively flat. When comparing year-over-year RPMs and load factor results it is useful to note that our 2023 figures were impacted by the accelerating engine inspections. Last year, we had to reduce operations as engines temporarily left our fleet; today, we are gradually adding capacity as engines and aircraft return.

Enrique Beltranena, Volaris’ President and CEO, said: “Demand remains solid across the Volaris network, particularly as the domestic market continues to be resilient. Heading into the winter season, we continue strategically investing in the transborder market. In November, we added transborder capacity in preparation for the December high season, which is ramping up. We see this ramping well into the peak holiday season and will continue to manage low-season demand elasticity through capacity adjustments when necessary.” Mr. Beltranena added: “We are pleased with our strong operating figures year-to-date despite the headwinds, such as the GTF engine inspections.”

 November
2024
November
2023
VarianceYTD
November
2024
YTD
November
2023
Variance
RPMs (million, scheduled & charter)            
Domestic1,554 1,736 -10.5%16,503 20,613 -19.9%
International963 967 -0.3%10,232 10,008 2.2%
Total2,518 2,703 -6.9%26,735 30,620 -12.7%
ASMs (million, scheduled & charter)            
Domestic1,688 1,867 -9.6%18,210 23,605 -22.9%
International1,212 1,143 6.0%12,619 11,974 5.4%
Total2,899 3,011 -3.7%30,829 35,579 -13.4%
Load Factor (%, RPMs/ASMs)            
Domestic92.1%93.0%(0.9) pp90.6%87.3%3.3 pp
International79.5%84.5%(5.0) pp81.1%83.6%(2.5) pp
Total86.8%89.8%(3.0) pp86.7%86.1%0.7
 pp
Passengers (thousand, scheduled & charter)            
Domestic1,882 2,047 -8.1%19,721 23,801 -17.1%
International668 667 0.2%6,991 6,883 1.6%
Total2,550 2,714 -6.0%26,712 30,684 -12.9%
 

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 219 and its fleet from 4 to 142 aircraft. Volaris offers more than 450 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 (VLRS) load factor in November 2024?

Volaris reported a load factor of 86.8% in November 2024, which was 3.0 percentage points lower than the previous year.

How many passengers did Volaris (VLRS) transport in November 2024?

Volaris transported 2.6 million passengers in November 2024, representing a 6.0% decrease from November 2023.

What caused the capacity decrease for Volaris (VLRS) in November 2024?

Volaris' ASM capacity decreased by 3.7% year-over-year due to Pratt & Whitney engine inspections, partially offset by fewer aircraft groundings as inspected engines returned to service.

How did Volaris (VLRS) domestic RPMs perform in November 2024?

Volaris' domestic RPMs decreased by 10.5% in November 2024 compared to the same period in 2023.

CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN, S.A.B. DE C.V.

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