Volaris Reports Financial Results for the First Quarter 2025

MEXICO CITY, April 28, 2025 (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, today reports its unaudited financial results for the first quarter 20251. First Quarter 2025 Highlights(All figures are reported in U.S. dollars and compared to 1Q 2024 unless otherwise noted) Net loss of $51 million. Loss per American Depositary Shares (ADS) of $45 cents.Total operating revenues of $678 million, a 12% decrease.Total revenue per available seat mile (TRASM) decreased 17% to $7.76 cents.Available seat miles (ASMs) increased by 6% to 8.7 billion.Total operating expenses of $688 million, representing 101% of total operating revenue.Total operating expenses per available seat mile (CASM) decreased 3% to $7.88 cents.Average economic fuel cost decreased 13% to $2.63 per gallon.CASM ex fuel increased 5% to $5.40 cents.EBITDAR of $203 million, a 14% decrease.EBITDAR margin was 29.9%, a decrease of 0.7 percentage points.Total cash, cash equivalents, and short-term investments totaled $862 million, representing 28% of the last twelve months’ total operating revenue.Net debt-to-LTM EBITDAR2 ratio increased to 2.7x, compared to 2.6x in the previous quarter. Enrique Beltranena, President & Chief Executive Officer, said: “Volaris remains focused, as always, on disciplined execution as we navigate a period of geopolitical and economic uncertainty. Our tactical capacity decisions will continue to be grounded in two guiding priorities: customer demand and sustained profitability. We can operate and execute changes in our network with flexibility, agility, and resilience, leveraging our cost structure and financial strength. We will continue delivering on our value proposition: offering low fares, maintaining an attractive and reliable schedule, and providing relevant ancillary options that enhance the travel experience. We are confident in our ability to prepare for a fast recovery once uncertainty eases. As we have demonstrated in the past, we are preparing for a strong comeback.” 1 The financial information, unless otherwise indicated, is presented in accordance with the International Financial Reporting Standards (IFRS).2 Includes short-term investments. First Quarter 2025 Consolidated Financial and Operating Highlights(All figures are reported in U.S. dollars and compared to 1Q 2024 unless otherwise noted) First Quarter 20252024Var.Total operating revenues (millions)678768(11.7%)TRASM (cents)7.769.34(17.0%)ASMs (millions, scheduled & charter)8,7378,2176.3%Load Factor (scheduled, RPMs/ASMs)85.4%87.0%(1.6 pp)Passengers (thousands, scheduled & charter)7,4186,9247.1%Fleet (at the end of the period)14513411Total operating expenses (millions)6886643.6 %CASM (cents)7.888.08(2.5%)CASM ex fuel (cents)5.405.164.5%Adjusted CASM ex fuel (cents)34.875.32(8.5%)Operating (loss) income (EBIT) (millions)(10)104 N/A% EBIT margin(1.5%)13.5%(15.0 pp)Net (loss) income (millions)(51)33N/A% Net (loss) income margin(7.6%)4.3%(11.9 pp)EBITDAR (millions)203235(13.6%)% EBITDAR margin29.9%30.6%(0.7 pp)Net debt-to-LTM EBITDAR42.7x3.1x(0.4x) Reconciliation of CASM to Adjusted CASM ex fuel: First QuarterReconciliation of CASM20252024Var.CASM (cents)7.888.08(2.5%)Fuel expense(2.48)(2.92)(15.0%)CASM ex fuel5.405.164.5%Aircraft and engine variable lease expenses5(0.61)0.04N/ASale and lease back gains0.080.12(36.5%)Adjusted CASM ex fuel 4.875.32(8.5%) Note: Figures are rounded for convenience purposes. Further detail found in financial and operating indicators.3 Excludes fuel expense, aircraft and engine variable lease expenses and sale and lease-back gains.4 Includes short-term investments.5 Aircraft redeliveries. First Quarter 2025(All figures are reported in U.S. dollars and compared to 1Q 2024 unless otherwise noted) Total operating revenues for the quarter amounted to $678 million, a 11.7% decrease, primarily due to the depreciation of the Mexican peso against the U.S. dollar and a lower total operating revenue per passenger. Total capacity, in terms of available seat miles (ASMs), was 8.7 billion, representing a 6.3% increase. Booked passengers totaled 7.4 million, a 7.1% increase. Mexican domestic booked passengers increased 8.5%, while international booked passengers increased 3.7%. The load factor for the quarter reached 85.4%, representing a 1.6 percentage point decrease. TRASM declined 17.0% to $7.76 cents, and total operating revenue per passenger stood at $91, decreasing 17.6%. The average base fare per passenger stood at $39, a 28.8% decrease. The total ancillary revenue per passenger was $53, reflecting a 6.9% decline. Ancillary revenues accounted for 57.8% of total operating revenues. Total operating expenses were $688 million, representing 101% of total operating revenue. CASM totaled $7.88 cents, representing a 2.5% decline. The average economic fuel cost decreased by 12.5% to $2.63 per gallon. CASM ex fuel increased 4.5% to $5.40 cents, primarily due to higher redelivery costs, compared to a one-time benefit recognized in the first quarter of 2024 from the remeasurement of redelivery accrual related to aircraft lease extensions. These costs were partially offset by a weaker Mexican peso and higher capacity. Comprehensive financing result represented an expense of $66 million, compared to a $57 million expense in the same period of 2024. Income tax benefit was $25 million, compared to a $14 million expense registered in the first quarter of 2024. Net loss in the quarter was $51 million, with a loss per ADS of $45 cents. EBITDAR for the quarter was $203 million, a 13.6% decline. EBITDAR margin stood at 29.9%, down by 0.7 percentage points. Balance Sheet, Liquidity, and Capital Allocation As of March 31, 2025, cash, cash equivalents, and short-term investments were $862 million, representing 28.3% of the last twelve months' total operating revenue. Net cash flow provided by operating activities was $157 million. Net cash flow used in investing and financing activities was $6 million and $212 million, respectively. The financial debt amounted to $766 million, reflecting a 5.4% decrease, while total lease liabilities remained essentially flat at $3,061 million. Net debt-to-LTM EBITDAR6 ratio stood at 2.7x, compared to 2.6x in the previous quarter and 3.1x in the same period of 2024. The average exchange rate for the period was Ps.20.42 per U.S. dollar and Ps.20.32 per U.S. dollar at the end of the first quarter, reflecting a depreciation of 20.2% and 21.8% of the Mexican peso, respectively. 6 Includes short-term investments. 2025 Updated Guidance Considering ongoing macroeconomic uncertainty, Volaris is not providing full-year 2025 margin guidance. The Company will continue to closely monitor demand trends and economic developments and will provide an update once visibility improves. For the full year 2025, the Company expects: Updated GuidancePrior GuidanceFull Year 2025 Guidance ASM growth (YoY) 8% to 9%~13%CAPEX (1)~$250 million~$250 million(1) CAPEX net of financed fleet predelivery payments. For the second quarter of 2025, the Company expects: 2Q’252Q’24 (2)2Q’25 Guidance ASM growth (YoY)9% to 10%-17.2%TRASM$7.4 to $7.5 cents$8.89 centsCASM ex fuel$5.7 to $5.8 cents$5.33 centsEBITDAR margin24% to 25%35.9%Average USD/MXN ratePs. 20.20 to 20.40Ps. 17.21Average U.S. Gulf Coast jet fuel price$2.00 to $2.10$2.47(2) For convenience purposes, actual reported figures for 2Q'24 are included. The second quarter and full year 2025 outlook presented above includes the compensation that Volaris expects to receive for the projected grounded aircraft resulting from the GTF engine inspections, in accordance with the Company’s agreement with Pratt & Whitney. The Company's outlook is subject to unforeseen disruptions, macroeconomic factors, or other negative impacts that may affect its business and is based on several assumptions, including the foregoing, which are subject to change and may be outside the control of the Company and its management. The Company's expectations may change if actual results vary from these assumptions. There can be no assurances that Volaris will achieve these results. Fleet During the first quarter, Volaris retired one A319ceo aircraft and added two A320neo, and one A321neo aircraft to its fleet, bringing the total number of aircraft to 145. At the end of the quarter, Volaris’ fleet had an average age of 6.4 years and an average seating capacity of 198 passengers per aircraft. Of the total fleet, 61% of the aircraft are New Engine Option (NEO) models. First QuarterFourth QuarterTotal Fleet20252024Var.2024Var.CEO A31923(1)3(1)A3204442244-A3211010-10-NEO A32055514532A32134286331Total aircraft at the end of the period145134111432 Investors are urged to carefully read the Company’s periodic reports filed with or provided to the Securities and Exchange Commission, for additional information regarding the Company. Investor Relations ContactRicardo Martínez / ir@volaris.com Media ContactIsrael Álvarez / ialvarez@gcya.net Conference Call Details Date:Monday, April 28, 2025Time:11:00 a.m. Mexico City / 1:00 p.m. New York (USA) (ET)Webcast link:Volaris Webcast (View the live webcast)Dial-in & Live Q&A link: Volaris Dial-in and Live Q&A Click on the call link and complete the online registration form.Upon registering you will receive the dial-in info and a unique PIN to join the call, as well as an email confirmation with the details.Select a method for joining the call: Dial-In: A dial-in number and unique PIN are displayed to connect directly from your phone.Call Me: Enter your phone number and click “Call Me” for an immediate callback from the system. 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 229 and its fleet from 4 to 145 aircraft. Volaris offers more than 550 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. Forward-Looking Statements Statements in this release contain various forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which represent the Company's expectations, beliefs, or projections concerning future events and financial trends affecting the financial condition of our business. When used in this release, the words "expects," “intends,” "estimates," “predicts,” "plans," "anticipates," "indicates," "believes," "forecast," "guidance," “potential,” "outlook," "may," “continue,” "will," "should," "seeks," "targets" and similar expressions are intended to identify forward-looking statements. Similarly, statements describing the Company's objectives, plans or goals, or actions the Company may take in the future are forward-looking. Forward-looking statements include, without limitation, statements regarding the Company's outlook, the expectation of receiving certain compensation in connection with the GTF engine removals, and the anticipated execution of its business plan and focus on its 2025 priorities. Forward-looking statements should not be read as a guarantee or assurance of future performance or results. They will not necessarily be accurate indications of the times at or by which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time concerning future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Forward-looking statements are subject to several factors that could cause the Company's actual results to differ materially from the Company's expectations, including the competitive environment in the airline industry, the Company's ability to keep costs low; changes in fuel costs, the impact of worldwide economic conditions on customer travel behavior; the Company's ability to generate non-ticket revenue; and government regulation. The Company's U.S. Securities and Exchange Commission filings contain additional information concerning these and other factors. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date of this release. You should not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Supplemental Information on Non-IFRS Measures We evaluate our financial performance by using various financial measures that are not performance measures under International Financial Reporting Standards (“non-IFRS measures”). These non-IFRS measures include CASM, CASM ex fuel, Adjusted CASM ex fuel, EBITDAR, Net debt-to-LTM EBITDAR, Total cash, cash equivalents and short-term investments. We define CASM as total operating expenses by available seat mile. We define CASM ex fuel as total operating expenses by available seat mile, excluding fuel expense. We define Adjusted CASM ex fuel as total operating expenses by available seat mile, excluding fuel expense, aircraft and engine variable lease expenses and sale and lease back gains. We define EBITDAR as earnings before interest, income tax, depreciation and amortization, depreciation of right of use assets and aircraft and engine variable lease expenses. We define Net debt-to-LTM EBITDAR as Net debt divided by LTM EBITDAR. We define Total cash, cash equivalents and short-term investments as the sum of cash, cash equivalents and short-term investments. These non-IFRS measures are provided as supplemental information to the financial information presented in this release that is calculated and presented in accordance with International Financial Reporting Standards (“IFRS”) because we believe that they, in conjunction with the IFRS financial information, provide useful information to management’s, analysts and investors overall understanding of our operating performance. Because non-IFRS measures are not calculated in accordance with IFRS, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related IFRS measures presented in this release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in the method of calculation and the items being adjusted. We encourage investors to review our financial statements and other filings with the Securities and Exchange Commission in their entirety for additional information regarding the Company and not to rely on any single financial measure. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and SubsidiariesFinancial and Operating Indicators Unaudited(U.S. dollars, except otherwise indicated)Three months ended March 31, 2025Three months ended March 31, 2024Variance Total operating revenues (millions)678768(11.7%)Total operating expenses (millions)6886643.6%EBIT (millions)(10)104N/AEBIT margin(1.5%)13.5%(15.0 pp)Depreciation and amortization (millions)15913418.7%Aircraft and engine variable lease expenses (millions)54(3)N/ANet (loss) income (millions)(51)33N/ANet (loss) income margin(7.6%)4.3%(11.9 pp)(Loss) earnings per share (1): Basic(0.04)0.03N/ADiluted(0.04)0.03N/A(Loss) earnings per ADS*: Basic(0.45)0.29N/ADiluted(0.44)0.29N/AWeighted average shares outstanding: Basic1,149,802,3681,151,450,983(0.1%)Diluted1,164,583,1591,165,976,677(0.1%)Financial Indicators Total operating revenue per ASM (TRASM) (cents) (2)7.769.34(17.0%)Average base fare per passenger3954(28.8%)Total ancillary revenue per passenger (3)5357(6.9%)Total operating revenue per passenger91111(17.6%)Operating expenses per ASM (CASM) (cents) (2)7.888.08(2.5%)CASM ex fuel (cents) (2)5.405.164.5%Adjusted CASM ex fuel (cents) (2) (4)4.875.32(8.5%)Operating Indicators Available seat miles (ASMs) (millions) (2)8,7378,2176.3%Domestic5,1084,7687.1%International3,6293,4495.2%Revenue passenger miles (RPMs) (millions) (2)7,4627,1464.4%Domestic4,5364,3294.8%International2,9262,8173.9%Load factor (5)85.4%87.0%(1.6 pp)Domestic88.8%90.8%(2.0 pp)International80.6%81.7%(1.0 pp)Booked passengers (thousands) (2)7,4186,9247.1%Domestic5,4084,9858.5%International2,0101,9393.7%Departures (2)44,57740,42810.3%Block hours (2)116,134109,3636.2%Aircraft at end of period14513411Average aircraft utilization (block hours)13.0012.732.1%Fuel gallons accrued (millions)81.5679.223.0%Average economic fuel cost per gallon (6)2.633.01(12.5%)Average exchange rate20.4217.0020.2%Exchange rate at the end of the period20.3216.6821.8%*Each ADS represents ten CPOs and each CPO represents a financial interest in one Series A share(1) The basic and diluted loss or earnings per share are calculated in accordance with IAS 33. Basic loss or earnings per share is calculated by dividing net loss or earnings by the average number of shares outstanding (excluding treasury shares). Diluted loss or earnings per share is calculated by dividing net loss or earnings by the average number of shares outstanding adjusted for dilutive effects.(2) Includes scheduled and charter.(3) Includes “Other passenger revenues” and “Non-passenger revenues”.(4) Excludes fuel expense, aircraft and engine variable lease expenses and saleand lease-back gains.(5) Includes scheduled.(6) Excludes Non-creditable VAT. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and SubsidiariesConsolidated Statement of Operations Unaudited(In millions of U.S. dollars)Three months ended March 31, 2025Three months ended March 31, 2024VarianceOperating revenues: Passenger revenues645732(11.9%)Fare revenues286375(23.7%)Other passenger revenues3593570.6% Non-passenger revenues3336(8.3%)Cargo550.0%Other non-passenger revenues2831(9.7%) Total operating revenues678768(11.7%) Other operating income(51)(45)13.3%Fuel expense217240(9.6%)Aircraft and engine variable lease expenses54(3)N/ASalaries and benefits1041022.0%Landing, take-off and navigation expenses122127(3.9%)Sales, marketing and distribution expenses3445(24.4%)Maintenance expenses2837(24.3%)Depreciation and amortization523548.6%Depreciation of right of use assets107998.1%Other operating expenses2127(22.2%)Total operating expenses6886643.6 % Operating (loss) income(10)104N/A Finance income12120.0%Finance cost(80)(62)29.0%Exchange gain (loss), net2(7)N/AComprehensive financing result(66)(57)15.8 % (Loss) income before income tax(76)47N/AIncome tax benefit (expense)25(14)N/ANet (loss) income(51)33N/A Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and SubsidiariesReconciliation of Total Ancillary Revenue per Passenger The following table shows quarterly additional detail about the components of total ancillary revenue: Unaudited(In millions of U.S. dollars)Three months ended March 31, 2025Three months ended March 31, 2024Variance Other passenger revenues3593570.6%Non-passenger revenues3336(8.3%)Total ancillary revenues392393(0.3%) Booked passengers (thousands) (1)7,4186,9247.1% Total ancillary revenue per passenger5357(6.9%) (1) Includes scheduled and charter. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and SubsidiariesConsolidated Statement of Financial Position (In millions of U.S. dollars)As of March 31, 2025 UnauditedAs of December 31, 2024 AuditedAssets Cash and cash equivalents847908Short-term investments1546Total cash, cash equivalents and short-terminvestments (1)862 - Accounts receivable, net212139Inventories1717Guarantee deposits232227Derivative financial instruments--Prepaid expenses and other current assets4245Total current assets1,3651,382Right of use assets2,4592,470Rotable spare parts, furniture and equipment, net1,0541,070Intangible assets, net2526Derivatives financial instruments--Deferred income taxes329286Guarantee deposits415426Other long-term assets3943Total non-current assets4,3214,321Total assets5,6865,703Liabilities and equity Unearned transportation revenue375343Accounts payable142164Accrued liabilities239222Other taxes and fees payable326274Income taxes payable229Financial debt241284Lease liabilities395391Other liabilities9663Total short-term liabilities1,8161,770Financial debt525526Accrued liabilities88Employee benefits1313Deferred income taxes1718Lease liabilities2,6662,670Other liabilities326333Total long-term liabilities3,5553,568Total liabilities5,3715,338Equity Capital stock248248Treasury shares(13)(13)Contributions for future capital increases--Legal reserve1717Additional paid-in capital284283Accumulated deficit(73)(22)Accumulated other comprehensive loss(148)(148)Total equity315365Total liabilities and equity5,6865,703 (1) Non-GAAP measure. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and SubsidiariesConsolidated Statement of Cash Flows – Cash Flow Data Summary Unaudited(In millions of U.S. dollars)Three months ended March 31, 2025Three months ended March 31, 2024 Net cash flow provided by operating activities157245Net cash flow used in investing activities(6)(97)Net cash flow used in financing activities*(212)(171)Decrease in cash and cash equivalents (61)(23)Net foreign exchange differences-1Cash and cash equivalents at beginning of period908774Cash and cash equivalents at end of period847752*Includes aircraft rental payments of $152 million and $141 million for the three months ended March 31, 2025, and 2024, respectively.

Volaris Reports Financial Results for the First Quarter 2025

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