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• Total Revenue: $3.1 billion for 2024, nearly the same level as 2023.

• Net Profit: $126 million for the full year 2024.

• EBITDA Margin: 36% for the full year 2024.

• Operating Cash Flow: Over $300 million generated in 2024.

• Liquidity Position: $954 million at the end of 2024.

• ASM (Available Seat Miles): 13% decrease year-over-year in 2024.

• Passenger Count: 29.5 million passengers carried in 2024.

• Ancillary Revenue: Accounted for more than 50% of total revenues in 2024.

• Net Debt to EBITDA Ratio: Reduced to 2.6 times by the end of 2024.

• Fuel Cost: Average economic fuel cost dropped 20% to $2.51 per gallon in Q4 2024.

• Fleet Size: 142 aircraft at the end of 2024, up from 129 a year ago.

• Load Factor: 87.3% for Q4 2024.

• Non-Fare Revenue: 52% of top line in 2024.

• Fourth Quarter Revenue: $835 million, a 7% decline year-over-year.

• Fourth Quarter Net Income: $46 million profit.

• Warning! GuruFocus has detected 6 Warning Signs with VLRS.

Release Date: February 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Controladora Vuela Compania de Aviacion SAB de CV (NYSE:VLRS) achieved a full year EBA margin of 36% in 2024, demonstrating strong financial performance despite challenges.

• The company maintained a stable revenue stream with $3.1 billion in total revenue, nearly matching 2023 levels, despite a 13% reduction in available seat miles (ASMs).

• Ancillary revenues accounted for more than 50% of total revenues, reflecting successful diversification and integration of ancillary programs.

• Controladora Vuela Compania de Aviacion SAB de CV (NYSE:VLRS) achieved a net promoter score of 37.4%, significantly outperforming low-cost carriers in the United States.

• The company was recognized in the Dow Jones best-in-class indexes for the third consecutive year, highlighting its commitment to sustainability and operational excellence.

Negative Points

• The company faced significant challenges due to GTF engine inspections and aircraft groundings, affecting more than half of its fleet engines.

• There was a 13% system-wide capacity decrease in 2024, with domestic capacity declining by 22%.

• The company anticipates ongoing revisions to affect a significant portion of its fleet in 2025, 2026, and 2027, potentially impacting operations.

• Controladora Vuela Compania de Aviacion SAB de CV (NYSE:VLRS) experienced a 20% depreciation of the Mexican peso against the US dollar, impacting topline results.

• The company expects a one-time cost of approximately $100 million in 2025 due to redelivery accruals and related maintenance.