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Volaris Reports Financial Results for the Fourth Quarter 2024: Net Income of $46 million

1. Q4 results show net income of $46M; operating revenues fell 7%. 2. EBITDAR improved 18% with margins up by 8 points; CASM rose modestly. 3. Full‐year net income reached $126M despite a 3.6% revenue decline. 4. 2025 guidance targets 13% capacity expansion amid ongoing engine inspections.

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FAQ

Why Neutral?

While improved EBITDAR margins and profitability provide operational strength, the challenges from engine inspections, reduced capacity, and rising CASM may offset gains. Historically, airlines facing similar operational disruptions (e.g., during aircraft groundings) have shown mixed market reactions, justifying a neutral rating.

How important is it?

The detailed financial metrics and forward guidance provide critical insights that can shape medium to long-term investor views. The mixed signals between strong margin performance and looming operational challenges make this report highly significant for VLRS's valuation.

Why Long Term?

The significant engine inspection issues and fleet management strategies are expected to affect operations through 2025-2027, influencing long-term performance. Strategic adjustments and new aircraft integrations will shape investor sentiment over several years.

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MEXICO CITY, Feb. 24, 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 fourth quarter and full year of 20241. Fourth Quarter 2024 Highlights(All figures are reported in U.S. dollars and compared to 4Q 2023 unless otherwise noted) Net income of $46 million. Earnings per American Depositary Shares (ADS) of $40 cents.Total operating revenues of $835 million, a 7% decrease.Total revenue per available seat mile (TRASM) decreased 2% to $9.35 cents.Available seat miles (ASMs) decreased by 5% to 8.9 billion.Total operating expenses of $718 million, representing 86% of total operating revenue.Total operating expenses per available seat mile (CASM) increased 3% at $8.04 cents.Average economic fuel cost decreased 20% to $2.51 per gallon.CASM ex fuel increased 17% to $5.68 cents.EBITDAR of $331 million, an 18% increase.EBITDAR margin was 39.6%, an increase of 8 percentage points.Total cash, cash equivalents, restricted cash, and short-term investments totaled $954 million, representing 30% of the last twelve months’ total operating revenue.Net debt-to-LTM EBITDAR2 ratio decreased to 2.6x, compared to 2.7x in the previous quarter. Enrique Beltranena, President & Chief Executive Officer, said: “2024 was a remarkable year for Volaris. Despite continuous adversity from GTF engine inspections and aircraft groundings, we generated some of our best top and bottom-line results. Thanks to the work of our management team and Ambassadors, we posted a net profit each quarter and achieved a full-year EBITDAR margin of 36%. Throughout the year, we remained focused on reshaping the company, increasing profitability, and upholding our commitment to schedule integrity, customer preference and operational excellence. Looking ahead, we anticipate the ongoing engine inspections to affect a significant portion of our fleet not only in 2025, but also in 2026 and 2027. In response, we remain focused on harmonizing three critical areas to maximize return on investment: 1) balancing unscheduled engine removals, inspections, and GTF engine returns; 2) managing new aircraft arrivals from Airbus; and 3) optimizing aircraft returns and lease extensions. For 2025, considering these three elements, our strategic approach will continue to prioritize profitability while reinforcing our position as the preferred airline in our core markets. We will maintain a rational and prudent approach to capacity growth in 2025, targeting an expansion of around 13%. Despite this growth, Volaris’ total capacity will remain below 2023 levels, with approximately 40% now allocated to the international market.” 1 The financial information, unless otherwise indicated, is presented in accordance with the International Financial Reporting Standards (IFRS).2 Includes short-term investments. Full Year 2024 Highlights(All figures are reported in U.S. dollars and compared to FY 2023 unless otherwise noted) Net income of $126 million. Earnings per American Depositary Shares (ADS) of $1.10.Total operating revenues of $3,142 million, a 4% decrease.Total revenue per available seat mile (TRASM) increased 10% to $9.24 cents.Available seat miles (ASMs) decreased 13% to 34.0 billion.Total operating expenses of $2,729 million, representing 87% of total operating revenue.Total operating expenses per available seat mile (CASM) increased 3% to $8.03 cents.Average economic fuel cost decreased 12% to $2.75 per gallon.CASM ex fuel increased 12% to $5.40 cents.EBITDAR of $1,141 million, a 39% increase.EBITDAR margin was 36.3%, an increase of 11 percentage points. Fourth Quarter and Full Year 2024 Consolidated Financial and Operating Highlights(All figures are reported in U.S. dollars and compared to 4Q 2023 and FY 2023 unless otherwise noted)  Fourth QuarterFull Year  20242023Var.20242023Var.Total operating revenues (millions)835899(7.1%)3,1423,259(3.6%)TRASM (cents)9.359.56(2.2%)9.248.3810.3%ASMs (millions, scheduled & charter)8,9309,402(5.0%)33,99038,890(12.6%)Load Factor (RPMs/ASMs)87.3%88.1%(0.8 pp)86.8%86.0%0.8 ppPassengers (thousands, scheduled & charter)7,8488,247(4.8%)29,47333,497(12.0%)Fleet (at the end of the period)1431291414312914Total operating expenses (millions)718735(2.3%)2,7293,036(10.1%)CASM (cents)8.047.812.9%8.037.812.8%CASM ex fuel (cents)5.684.8616.8%5.404.8112.2%Adjusted CASM ex fuel (cents)35.255.073.5%5.094.5711.6%Operating income (EBIT) (millions)117 164 (28.7%)413 223 85.2% % EBIT margin14.0%18.3%(4.2 pp)13.2%6.8%6.3 ppNet income (millions) 46112(58.9%)1268>100.0% % Net income margin5.5%12.5%(7.0 pp)4.0%0.2%3.8 ppEBITDAR (millions)33128117.8% 1,14182338.6% % EBITDAR margin39.6%31.3%8.4 pp36.3%25.2%11.1 ppNet debt-to-LTM EBITDAR42.6x3.3x(0.8x) 2.6x3.3x(0.8x)       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. Reconciliation of CASM to Adjusted CASM ex fuel:  Fourth QuarterFull Year Reconciliation of CASM20242023Var.20242023Var.CASM (cents)8.047.812.9%8.037.812.8%Fuel expense(2.36)(2.95)(20.0%)(2.63)(3.00)(12.2%)CASM ex fuel5.684.8616.8%5.404.8112.2%Aircraft and engine variable lease expenses5(0.58)0.15N/A(0.40)(0.27)48.9%Sale and lease back gains0.150.06>100.0%0.090.03>100.0%Adjusted CASM ex fuel 5.255.073.5%5.094.5711.6%       Note: Figures are rounded for convenience purposes. Further detail found in financial and operating indicators.5 Aircraft redeliveries.  Fourth Quarter 2024(All figures are reported in U.S. dollars and compared to 4Q 2023 unless otherwise noted) Total operating revenues for the quarter amounted to $835 million, a 7.1% decrease, primarily due to the depreciation of the Mexican peso against the U.S. dollar and a reduction in ASMs, partially offset by higher ancillary revenues. Total capacity, in terms of available seat miles (ASMs), was 8.9 billion, representing a 5.0% decline. Booked passengers totaled 7.8 million, a 4.8% decrease. Mexican domestic booked passengers decreased 7.7%, while international booked passengers increased 4.0%. The load factor for the quarter reached 87.3%, representing a 0.8 percentage point decrease. TRASM declined 2.2% to $9.35 cents, and total operating revenue per passenger stood at $106, decreasing 2.4%. The average base fare per passenger stood at $50, an 8.4% decrease. The total ancillary revenue per passenger was $57, reflecting a 3.6% improvement. Ancillary revenues accounted for 53.3% of total operating revenues. Total operating expenses were $718 million, representing 86.0% of total operating revenues. CASM totaled $8.04 cents, representing a 2.9% increase. The average economic fuel cost decreased by 19.9% to $2.51 per gallon. CASM ex fuel increased 16.8% to $5.68 cents, mainly due to reduced operating leverage as a result of the aircraft-on-ground (AOG) caused by the P&W engine inspections, with an average of 34 AOGs during the quarter. Comprehensive financing result represented an expense of $76 million, compared to a $35 million expense in the same period of 2023. Income tax benefit was $5 million, compared to a $17 million expense registered in the fourth quarter of 2023. Net income in the quarter was $46 million, with an earnings per ADS of $40 cents. EBITDAR for the quarter was $331 million, a 17.8% improvement, primarily driven by strict cost control, and more favorable jet fuel prices. EBITDAR margin stood at 39.6%, up by 8.4 percentage points. Cash Flow For the quarter, net cash flow provided by operating activities was $308 million. Net cash flow used in investing and financing activities was $85 million and $98 million, respectively. Full Year 2024(All figures are reported in U.S. dollars and compared to FY 2023 unless otherwise noted) Total operating revenues were $3,142 million, a decrease of 3.6% compared to 2023. Volaris transported 29.5 million passengers, a decrease of 12.0%, while total capacity for the year, in terms of available seat miles (ASMs), decreased 12.6% to 34.0 billion. Load factor reached 86.8%, a 0.8 percentage point increase compared to 2023. TRASM increased 10.3% to $9.24 cents. Average base fare was $51, a 4.5% increase and total operating revenue per passenger stood at $107, representing an increase of 9.6%. Ancillary revenue per passenger was $55, posting a 14.8% increase and represented 51.7% of total operating revenues. Volaris posted total operating expenses of $2,729 million, representing 86.9% of total operating revenues. CASM increased 2.8% to $8.03 cents. The average economic fuel cost of $2.75 per gallon, a 11.6% decrease compared to 2023 levels. CASM ex fuel increased 12.2% to $5.40 cents. The comprehensive financing result for the full year 2024 amounted to an expense of $231 million, compared to a $215 million expense posted in 2023. The Company recorded an income tax expense for the full year 2024 of $56 million, compared to an income tax benefit of $0.4 million registered in 2023. For the full year 2024, Volaris reported a net income of $126 million, with earnings per ADS of $1.10, compared to an $8 million net income in 2023. Volaris registered an EBITDAR of $1,141 million, a 38.6% increase compared to 2023. EBITDAR margin was 36.3%, an increase of 11.1 percentage points. Balance Sheet, Liquidity, and Capital Allocation As of December 31, 2024, cash, cash equivalents, restricted cash, and short-term investments were $954 million, representing 30.4% of the last twelve months’ total operating revenue. Net cash flow provided by operating activities was $1,090 million. Net cash flow used in investing and financing activities was $472 million and $472 million, respectively. The financial debt amounted to $810 million, an increase of 24.0% year-over-year, due to pre-delivery payments related to 2026 aircraft deliveries and spare engine financing. Total lease liabilities stood at $3,061 million, an increase of 5.9% due to the increase in the total fleet. Net debt-to-LTM EBITDAR6 ratio stood at 2.6x, compared to 2.7x in the previous quarter and 3.3x at the end of 2023. The average exchange rate for the fourth quarter was Ps.20.07 per U.S. dollar and Ps.20.27 per U.S. dollar at the end of the period, reflecting a depreciation of 14.1% and 20.0% of the Mexican peso, respectively. As for full year 2024, the average exchange rate was Ps.18.30 per U.S. dollar, a 3.0% appreciation compared to the previous year. 6 Includes short-term investments. 2025 Guidance For the full year 2025, the Company expects:  20252024 (1)Full Year 2025 Guidance  ASM growth (YoY)~13%-12.6%EBITDAR margin34% to 36%36.3%CAPEX (2)~$250 million$350 millionAverage USD/MXN ratePs. 21.00 to 21.20Ps. 18.30Average U.S. Gulf Coast jet fuel price$2.15 to $2.25$2.34(1) For convenience purposes, actual reported figures for 2024 are included.(2) CAPEX net of financed fleet predelivery payments.  For the first quarter of 2025, the Company expects:  1Q’251Q’24 (3)1Q’25 Guidance  ASM growth (YoY)~7%-13.4%TRASM$7.9 to $8.0 cents$9.34 centsCASM ex fuel$5.5 to $5.6 cents$5.16 centsEBITDAR margin28% to 29%30.6%Average USD/MXN ratePs. 20.60 to 20.80Ps. 17.00Average U.S. Gulf Coast jet fuel price$2.25 to $2.35$2.60(3) For convenience purposes, actual reported figures for 1Q’24 are included.  The first 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 fourth quarter, Volaris added two A320ceo, one A320neo and three A321neo aircraft to its fleet, bringing the total number of aircraft to 143. 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, 60% of the aircraft are New Engine Option (NEO) models.  Fourth QuarterThird QuarterTotal Fleet20242023Var.2024Var.CEO     A31933-3-A32044404422A3211010-10-NEO     A32053512521A32133258303Total aircraft at the end of the period143129141376       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, February 24, 2025Time:10:00 am Mexico City / 11:00 am 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 230 and its fleet from 4 to 145 aircraft. Volaris offers more than 480 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, restricted cash, 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, restricted cash, and short-term investments as the sum of cash, cash equivalents, restricted cash, 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 December 31, 2024Three months ended December 31, 2023Variance Total operating revenues (millions)835899(7.1%)Total operating expenses (millions)718735(2.3%)EBIT (millions)117164(28.7%)EBIT margin14.0%18.3%(4.2 pp)Depreciation and amortization (millions)16213123.7%Aircraft and engine variable lease expenses (millions)52(14)N/ANet income (millions)46112(58.9%)Net income margin5.5%12.5%(7.0 pp)Earnings per share (1):   Basic0.040.10(59.3%)Diluted0.040.10(59.3%)Earnings per ADS*:   Basic0.400.97(59.3%)Diluted0.390.96(59.3%)Weighted average shares outstanding:   Basic1,150,123,3821,151,640,062(0.1%)Diluted1,165,507,1221,165,847,2980.0%Financial Indicators   Total operating revenue per ASM (TRASM) (cents) (2)9.359.56(2.2%)Average base fare per passenger5054(8.4%)Total ancillary revenue per passenger (3)57553.6%Total operating revenue per passenger106109(2.4%)Operating expenses per ASM (CASM) (cents) (2)8.047.812.9%CASM ex fuel (cents) (2)5.684.8616.8%Adjusted CASM ex fuel (cents) (2) (4)5.255.073.5%Operating Indicators   Available seat miles (ASMs) (millions) (2)8,9309,402(5.0%)Domestic5,1935,832(11.0%)International3,7373,5704.7%Revenue passenger miles (RPMs) (millions) (2)7,7968,288(5.9%)Domestic4,7625,356(11.1%)International3,0342,9313.5%Load factor (5)87.3%88.1%(0.8 pp)Domestic91.7%91.8%(0.1 pp)International81.2%82.1%(0.9 pp)Booked passengers (thousands) (2)7,8488,247(4.8%)Domestic5,7456,225(7.7%)International2,1032,0224.0%Departures (2)45,56647,671(4.4%)Block hours (2)118,050125,221(5.7%)Aircraft at end of period14312914Average daily aircraft utilization (block hours)13.1313.23(0.8%)Fuel gallons accrued (millions)83.3988.03(5.3%)Average economic fuel cost per gallon (6)2.513.13(19.9%)Average exchange rate20.0717.5814.1%Exchange rate at the end of the period20.2716.8920.0%*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 inaccordance with IAS 33. Basic loss or earnings per share is calculated bydividing net loss or earnings by the average number of shares outstanding(excluding treasury shares). Diluted loss or earnings per share is calculated bydividing net loss or earnings by the average number of shares outstandingadjusted 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 SubsidiariesFinancial and Operating Indicators Unaudited(U.S. dollars, except otherwise indicated)Twelve months ended December 31, 2024Twelve months ended December 31, 2023Variance Total operating revenues (millions)3,1423,259(3.6%)Total operating expenses (millions)2,7293,036(10.1%)EBIT (millions)41322385.2%EBIT margin13.2%6.8%6.3 ppDepreciation and amortization (millions)59349619.6%Aircraft and engine variable lease expenses (millions)13510429.8%Net income (millions)1268>100.0%Net income margin4.0%0.2%3.8 ppEarnings per share (1):   Basic0.110.01>100.0%Diluted0.110.01>100.0%Earnings per ADS*:   Basic1.100.07>100.0%Diluted1.080.07>100.0%Weighted average shares outstanding:   Basic1,150,743,2301,152,609,485(0.2%)Diluted1,165,858,6471,165,450,7340.0%Financial Indicators   Total operating revenue per ASM (TRASM) (cents) (2)9.248.3810.3%Average base fare per passenger51494.5%Total ancillary revenue per passenger (3)554814.8%Total operating revenue per passenger107979.6%Operating expenses per ASM (CASM) (cents) (2)8.037.812.8%CASM ex fuel (cents) (2)5.404.8112.2%Adjusted CASM ex fuel (cents) (2) (4)5.094.5711.6%Operating Indicators   Available seat miles (ASMs) (millions) (2)33,99038,890(12.6%)Domestic20,03025,630(21.8%)International13,96013,2605.3%Revenue passenger miles (RPMs) (millions) (2)29,50533,449(11.8%)Domestic18,16122,422(19.0%)International11,34411,0272.9%Load factor (5)86.8%86.0%0.8 ppDomestic90.7%87.5%3.2 ppInternational81.3%83.2%(1.9 pp)Booked passengers (thousands) (2)29,47333,497(12.0%)Domestic21,70525,909(16.2%)International7,7687,5882.4%Departures (2)173,209201,376(14.0%)Block hours (2)451,822523,761(13.7%)Aircraft at end of period14312914Average daily aircraft utilization (block hours)13.0313.37(2.6%)Fuel gallons accrued (millions)322.70372.20(13.3%)Average economic fuel cost per gallon (6)2.753.11(11.6%)Average exchange rate18.3017.763.0%Exchange rate at the end of the year20.2716.8920.0%*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 inaccordance with IAS 33. Basic loss or earnings per share is calculated bydividing net loss or earnings by the average number of shares outstanding(excluding treasury shares). Diluted loss or earnings per share is calculated bydividing net loss or earnings by the average number of shares outstandingadjusted 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 sale and 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 December 31, 2024Three months ended December 31, 2023VarianceOperating revenues:    Passenger revenues803865(7.2%)Fare revenues390447(12.8%)Other passenger revenues413418(1.2%)     Non-passenger revenues3234(5.9%)Cargo56(16.7%)Other non-passenger revenues2728(3.6%)    Total operating revenues835899(7.1%)    Other operating income(56)(50)12.0%Fuel expense211277(23.8%)Aircraft and engine variable lease expenses52(14)N/ASalaries and benefits11210110.9%Landing, take-off and navigation expenses127137(7.3%)Sales, marketing and distribution expenses3645(20.0%)Maintenance expenses282416.7%Depreciation and amortization523740.5%Depreciation of right of use assets1109417.0%Other operating expenses4684(45.2%)Total operating expenses718735(2.3%)    Operating income117164(28.7%)    Finance income1314(7.1%)Finance cost(86)(45)91.1%Exchange loss, net(3)(4)(25.0%)Comprehensive financing result(76)(35)>100.0%     Income before income tax41129(68.2%)Income tax benefit (expense)5(17)N/ANet income46112(58.9%)         Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and SubsidiariesConsolidated Statement of Operations (In millions of U.S. dollars)Twelve months ended December 31, 2024(Unaudited)Twelve months ended December 31, 2023(Audited)VarianceOperating revenues:    Passenger revenues3,0103,123(3.6%)Fare revenues1,5171,650(8.1%)Other passenger revenues1,4931,4731.4%     Non-passenger revenues132136(2.9%)Cargo21205.0%Other non-passenger revenues111116(4.3%)    Total operating revenues3,1423,259(3.6%)    Other operating income(198)(55)>100.0%Fuel expense8941,165(23.3%)Aircraft and engine variable lease expenses13510429.8%Salaries and benefits4113876.2%Landing, take-off and navigation expenses493503(2.0%)Sales, marketing and distribution expenses1691671.2%Maintenance expenses100982.0%Depreciation and amortization18313436.6%Depreciation of right of use assets41036213.3%Other operating expenses132171(22.8%)Total operating expenses2,7293,036(10.1%)    Operating income41322385.2%     Finance income493828.9%Finance cost(294)(219)34.2%Exchange gain (loss), net14(34)N/AComprehensive financing result(231)(215)7.4%     Income before income tax1828>100.0% Income tax (expense) benefit(56)-N/ANet income1268>100.0%          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 December 31, 2024Three months ended December 31, 2023Variance    Other passenger revenues413418(1.2%)Non-passenger revenues3234(5.9%)Total ancillary revenues445452(1.5%)    Booked passengers (thousands) (1)7,8488,247(4.8%)    Total ancillary revenue per passenger57553.6%    (1) Includes scheduled and charter.  Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and SubsidiariesReconciliation of Total Ancillary Revenue per Passenger The following table shows additional detail about the components of total ancillary revenue for the full year 2024: (In millions of U.S. dollars)Twelve months ended December 31, 2024(Unaudited)Twelve months ended December 31, 2023(Audited)Variance    Other passenger revenues1,4931,4731.4%Non-passenger revenues132136(2.9%)Total ancillary revenues1,6251,6091.0%    Booked passengers (thousands) (1)29,47333,497(12.0%)    Total ancillary revenue per passenger554814.8%    (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 December 31, 2024(Unaudited)As of December 31, 2023(Audited)Assets  Cash, cash equivalents and restricted cash908774Short-term investments4615Total cash, cash equivalents, restricted cash, and short-term investments (1)954 - Accounts receivable, net139251Inventories1716Guarantee deposits227148Derivative financial instruments--Prepaid expenses and other current assets4544Total current assets1,3821,248Right of use assets2,4702,338Rotable spare parts, furniture and equipment, net1,070805Intangible assets, net2616Derivatives financial instruments-2Deferred income taxes286236Guarantee deposits426462Other long-term assets4339Total non-current assets4,3213,898Total assets5,7035,146Liabilities and equity  Unearned transportation revenue343343Accounts payable164250Accrued liabilities222163Other taxes and fees payable274262Income taxes payable298Financial debt284220Lease liabilities391373Other liabilities632Total short-term liabilities1,7701,621Financial debt526433Accrued liabilities814Employee benefits1315Deferred income taxes1816Lease liabilities2,6702,518Other liabilities333286Total long-term liabilities3,5683,282Total liabilities5,3384,903Equity  Capital stock248248Treasury shares(13)(12)Contributions for future capital increases--Legal reserve1717Additional paid-in capital283282Accumulated deficit(22)(148)Accumulated other comprehensive loss(148)(144)Total equity365243Total liabilities and equity5,7035,146   (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 December 31, 2024Three months ended December 31, 2023   Net cash flow provided by operating activities308218Net cash flow used in investing activities(85)(113)Net cash flow used in financing activities*(98)(82)Increase in cash, cash equivalents and restricted cash12523Net foreign exchange differences(1)2Cash, cash equivalents and restricted cash at beginning of period784749Cash, cash equivalents and restricted cash at end of period908774*Includes aircraft rental payments of $152 million and $139 million for the three months ended December 31, 2024, and 2023, respectively.  Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and SubsidiariesConsolidated Statement of Cash Flows – Cash Flow Data Summary (In millions of U.S. dollars)Twelve months ended December 31, 2024(Unaudited)Twelve months ended December 31, 2023(Audited)   Net cash flow provided by operating activities1,090730Net cash flow used in investing activities(472)(462)Net cash flow used in financing activities*(472)(214)Increase in cash, cash equivalents and restricted cash14654Net foreign exchange differences(12)8Cash, cash equivalents and restricted cash at beginning of year774712Cash, cash equivalents and restricted cash at end of year908774*Includes aircraft rental payments of $583 million and $529 million for the twelve months ended December 31, 2024, and 2023, respectively. 

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