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 2025(1) .

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 $(ADS.AU)$ 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 
                                                 2025   2024     Var. 
  Total operating revenues (millions)              678    768    (11.7%) 
  TRASM (cents)                                   7.76   9.34    (17.0%) 
  ASMs (millions, scheduled & charter)           8,737  8,217       6.3% 
  Load Factor (scheduled, RPMs/ASMs)             85.4%  87.0%   (1.6 pp) 
  Passengers (thousands, scheduled & charter)    7,418  6,924       7.1% 
  Fleet (at the end of the period)                 145    134         11 
----------------------------------------------  ------  -----  --------- 
  Total operating expenses (millions)              688    664      3.6 % 
  CASM (cents)                                    7.88   8.08     (2.5%) 
  CASM ex fuel (cents)                            5.40   5.16       4.5% 
  Adjusted CASM ex fuel (cents)(3)                4.87   5.32     (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)     33        N/A 
  % Net (loss) income margin                    (7.6%)   4.3%  (11.9 pp) 
----------------------------------------------  ------  -----  --------- 
  EBITDAR (millions)                               203    235    (13.6%) 
  % EBITDAR margin                               29.9%  30.6%   (0.7 pp) 
----------------------------------------------  ------  -----  --------- 
  Net debt-to-LTM EBITDAR(4)                      2.7x   3.1x     (0.4x) 
 
 

Reconciliation of CASM to Adjusted CASM ex fuel:

 
                                                        First Quarter 
  Reconciliation of CASM                            2025    2024    Var. 
  CASM (cents)                                       7.88    8.08   (2.5%) 
  Fuel expense                                     (2.48)  (2.92)  (15.0%) 
-------------------------------------------------  ------  ------  ------- 
  CASM ex fuel                                       5.40    5.16     4.5% 
  Aircraft and engine variable lease expenses(5)   (0.61)    0.04      N/A 
  Sale and lease back gains                          0.08    0.12  (36.5%) 
-------------------------------------------------  ------  ------  ------- 
  Adjusted CASM ex fuel                              4.87    5.32   (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 EBITDAR(6) 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 Guidance  Prior Guidance 
  Full Year 2025 Guidance 
--------------------------  ----------------  -------------- 
  ASM growth (YoY)                  8% to 9%            13% 
  CAPEX (1)                    $250 million   $250 million 
--------------------------  ----------------  -------------- 
(1) CAPEX net of financed fleet predelivery payments. 
 
 

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April 28, 2025 08:00 ET (12:00 GMT)