Volaris Reports September 2024 Traffic Results: 85% Load Factor
Volaris, the ultra-low-cost carrier serving Mexico, the United States, Central, and South America, reported its September 2024 preliminary traffic results. Key points include:
- ASM capacity decreased by 12.8% year-over-year due to accelerated Pratt & Whitney engine inspections and aircraft groundings
- Transported 2.3 million passengers with a load factor of 85.0%, a 1.2 pp increase from last year
- RPMs decreased by 11.5%, with domestic RPMs down 18.5% and international RPMs up 2.1%
CEO Enrique Beltranena noted strong demand in both domestic and international markets for Q3. The company expects more normalized comparables in Q4, considering the timing of engine inspections and the recovery of Cat 1 in Q4 2023. The engine inspection process is progressing as forecasted, and the company's performance aligns with expectations.
Volaris, la compagnia aerea ultra-low-cost che opera in Messico, Stati Uniti, America Centrale e Meridionale, ha riportato i suoi risultati preliminari di traffico di settembre 2024. I punti principali includono:
- La capacità ASM è diminuita del 12,8% rispetto all'anno precedente a causa di controlli accelerati sui motori Pratt & Whitney e di aerei a terra
- Sono stati trasportati 2,3 milioni di passeggeri con un fattore di carico del 85,0%, un incremento di 1,2 punti percentuali rispetto all'anno scorso
- I RPM sono diminuiti del 11,5%, con i RPM domestici in calo del 18,5% e quelli internazionali in aumento del 2,1%
Il CEO Enrique Beltranena ha sottolineato una forte domanda nei mercati domestici e internazionali per il terzo trimestre. L'azienda prevede comparazioni più normalizzate per il quarto trimestre, considerando i tempi dei controlli sui motori e il recupero della Cat 1 nel quarto trimestre del 2023. Il processo di ispezione dei motori sta procedendo come previsto e le performance dell'azienda sono in linea con le aspettative.
Volaris, la aerolínea ultra-bajo costo que opera en México, Estados Unidos, Centro y Sudamérica, informó sus resultados preliminares de tráfico de septiembre de 2024. Los puntos clave incluyen:
- La capacidad ASM disminuyó un 12,8% interanualmente debido a las inspecciones aceleradas de motores Pratt & Whitney y aterrizajes de aeronaves
- Se transportaron 2,3 millones de pasajeros con un factor de carga del 85,0%, un aumento de 1,2 puntos porcentuales en comparación con el año pasado
- Los RPM disminuyeron un 11,5%, con los RPM nacionales cayendo un 18,5% y los RPM internacionales aumentando un 2,1%
El CEO Enrique Beltranena destacó una fuerte demanda en los mercados nacionales e internacionales para el tercer trimestre. La compañía espera comparables más normalizados en el cuarto trimestre, considerando los plazos de las inspecciones de motores y la recuperación de Cat 1 en el cuarto trimestre de 2023. El proceso de inspección de motores avanza según lo previsto y el desempeño de la empresa se alinea con las expectativas.
볼라리스, 멕시코, 미국, 중앙 및 남미를 서비스하는 초저가 항공사, 2024년 9월 초도 교통 결과를 발표했습니다. 주요 사항은 다음과 같습니다:
- ASM 용량이 12.8% 감소했으며, 이는 Pratt & Whitney 엔진 점검과 항공기 지상 수리로 인한 것입니다
- 230만 명의 승객을 수송했으며, 승객 적재율은 85.0%로, 지난해보다 1.2 포인트 증가했습니다
- RPM은 11.5% 감소했으며, 국내 RPM은 18.5% 줄어들고 국제 RPM은 2.1% 증가했습니다
CEO 엔리케 벨트라넨은 Q3 동안 국내와 국제 시장 모두에서 강한 수요를 강조했습니다. 회사는 엔진 점검 일정과 2023년 4분기 Cat 1 회복을 고려하여 4분기에는 보다 정상화된 비교를 예상하고 있습니다. 엔진 점검 프로세스는 예상대로 진행되고 있으며, 회사의 성과는 기대에 부합합니다.
Volaris, la compagnie aérienne ultra-low-cost desservant le Mexique, les États-Unis, l'Amérique centrale et du Sud, a publié ses résultats de trafic préliminaires de septembre 2024. Les points clés incluent :
- La capacité ASM a diminué de 12,8% par rapport à l'année précédente en raison d'inspections accélérées des moteurs Pratt & Whitney et d'immobilisations d'avions
- 2,3 millions de passagers transportés avec un taux de remplissage de 85,0%, en hausse de 1,2 point par rapport à l'année dernière
- Les RPM ont diminué de 11,5%, avec une baisse de 18,5% des RPM domestiques et une hausse de 2,1% des RPM internationaux
Le PDG Enrique Beltranena a noté une forte demande sur les marchés domestiques et internationaux pour le troisième trimestre. L'entreprise s'attend à des comparaisons plus normales pour le quatrième trimestre, compte tenu des délais d'inspection des moteurs et de la récupération de la Cat 1 au quatrième trimestre 2023. Le processus d'inspection des moteurs avance comme prévu, et la performance de l'entreprise est conforme aux attentes.
Volaris, die ultra-niedrigpreisige Fluggesellschaft, die Mexiko, die USA, Mittel- und Südamerika bedient, hat ihre vorläufigen Verkehrsergebnisse für September 2024 veröffentlicht. Die wichtigsten Punkte sind:
- Die ASM-Kapazität sank im Jahresvergleich um 12,8% aufgrund beschleunigter Inspektionen von Pratt & Whitney-Motoren und Flugzeugstilllegungen
- 2,3 Millionen Passagiere wurden transportiert, mit einem Sitzladefaktor von 85,0%, was einem Anstieg von 1,2 Prozentpunkten gegenüber dem Vorjahr entspricht
- Die RPM gingen um 11,5% zurück, wobei die nationalen RPM um 18,5% und die internationalen RPM um 2,1% anstiegen
CEO Enrique Beltranena wies auf eine starke Nachfrage sowohl auf dem nationalen als auch auf dem internationalen Markt im Q3 hin. Das Unternehmen erwartet im Q4 normalisierte Vergleichswerte, die die zeitlichen Abläufe der Motorinspektionen und die Rückkehr der Cat 1 im Q4 2023 berücksichtigen. Der Motorinspektionsprozess verläuft planmäßig und die Leistung des Unternehmens entspricht den Erwartungen.
- Load factor increased by 1.2 percentage points to 85.0% compared to last year
- International RPMs increased by 2.1% year-over-year
- Strong demand reported in both domestic and international markets for Q3
- ASM capacity decreased by 12.8% year-over-year due to engine inspections and aircraft groundings
- Total RPMs decreased by 11.5% compared to September 2023
- Domestic RPMs declined by 18.5% year-over-year
- Total passenger count decreased by 9.0% compared to the same period last year
Insights
Volaris' September 2024 traffic results reveal mixed signals for investors. The 12.8% year-over-year decrease in ASM capacity due to engine inspections is concerning, as it directly impacts revenue potential. However, the 1.2 percentage point increase in load factor to 85.0% suggests improved efficiency in capacity utilization.
The 11.5% decrease in total RPMs is significant, with domestic RPMs down 18.5%. This decline in domestic travel demand could pressure revenues. On the positive side, international RPMs grew by 2.1%, indicating some resilience in cross-border travel.
Year-to-date figures show a more pronounced 13.7% decrease in total RPMs and a 15.0% decrease in ASMs, highlighting the ongoing challenges. The overall 14.4% decrease in total passengers year-to-date is a key metric to watch, as it directly impacts top-line growth.
Investors should monitor the progress of engine inspections and their impact on capacity, as well as the company's ability to maintain strong load factors amid reduced capacity. The recovery of Cat 1 status in Q4 2023 could provide a tailwind for international operations going forward.
The accelerated Pratt & Whitney engine inspections are a critical factor impacting Volaris' operations. This industry-wide issue affects multiple airlines, but Volaris seems to be managing it relatively well, maintaining a strong 85% load factor despite capacity constraints.
The 2.1% increase in international RPMs is noteworthy, suggesting Volaris is capitalizing on cross-border travel demand. This could be partly attributed to the recovery of Mexico's Category 1 aviation safety rating, which allows for expansion of U.S. routes.
The 19.8% decrease in domestic ASMs versus a smaller 12.2% decrease in domestic passengers indicates Volaris is optimizing its reduced fleet effectively. However, the significant domestic market contraction is a concern for the ultra-low-cost carrier model, which typically relies on high-volume domestic traffic.
Looking ahead, the normalization of comparables in Q4 and the potential resolution of engine inspection issues could provide a more accurate picture of Volaris' performance trajectory. The company's ability to quickly restore capacity once aircraft return to service will be important for its competitive positioning in the Mexican aviation market.
MEXICO CITY, Oct. 03, 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 September 2024 preliminary traffic results.
In September 2024, Volaris' ASM capacity decreased by
Enrique Beltranena, Volaris’ President and CEO said: “Volaris finished the third quarter with strong demand in both domestic and international markets. As we enter the final quarter of the year, we will have more normalized comparables, considering the timing of the accelerated engine inspections and the recovery of Cat 1 in the fourth quarter of 2023. The engine inspections’ process has evolved according to our forecast, and the Company continues to perform in line with our expectations.”
| September 2024 | September 2023 | Variance | YTD September 2024 | YTD September 2023 | Variance | |
| RPMs (million, scheduled & charter) | ||||||
| Domestic | 1,390 | 1,706 | - | 13,399 | 17,065 | - |
| International | 892 | 874 | 8,309 | 8,096 | ||
| Total | 2,282 | 2,580 | - | 21,709 | 25,161 | - |
| ASMs (million, scheduled & charter) | ||||||
| Domestic | 1,562 | 1,947 | - | 14,837 | 19,798 | - |
| International | 1,122 | 1,132 | - | 10,223 | 9,690 | |
| Total | 2,684 | 3,079 | - | 25,060 | 29,488 | - |
| Load Factor (%, RPMs/ASMs) | ||||||
| Domestic | 1.4 pp | 4.1 pp | ||||
| International | 2.3 pp | (2.3) pp | ||||
| Total | 85.0% | 83.8% | 1.2 pp | 86.6% | 85.3% | 1.3 pp |
| Passengers (thousand, scheduled & charter) | ||||||
| Domestic | 1,714 | 1,951 | - | 15,960 | 19,683 | - |
| International | 607 | 598 | 5,665 | 5,566 | ||
| Total | 2,321 | 2,549 | - | 21,625 | 25,250 | - |
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 220 and its fleet from 4 to 137 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
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