In This Article:
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Total Operating Revenues: $678 million, a 12% decrease year over year.
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EBITDAR: $203 million, down 14% year over year, with a margin of 29.9%.
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Net Loss: $51 million, translating into a loss per ADS of $0.045.
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ASM Growth: 6% increase versus the first quarter of 2024.
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Load Factor: 85.4%, down 1.6% compared to the prior year.
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TRASM: $0.078, a 17% decline year over year.
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CASM: $0.0788, a 3% decrease year over year.
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CASM ex Fuel: $0.054, up 5% year over year.
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Average Economic Fuel Cost: $2.63 per gallon, a 13% decline.
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Ancillary Revenue per Passenger: $53, marking a 7% year-over-year decline.
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Total Liquidity Position: $862 million, representing 28% of the last two months' total operating revenues.
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Net Debt to EBITDAR Ratio: 2.7 times at the first quarter end.
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Fleet Size: 145 aircraft with an average age of 6.4 years.
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On-Time Performance: 83.8%.
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Scheduled Completion Rate: 99.6%.
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Net Promoter Score: 39, one of the highest quarterly scores in the company's history.
Release Date: April 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Controladora Vuela Compania de Aviacion SAB de CV (NYSE:VLRS) maintained a high load factor of 89% in the Mexican domestic market, demonstrating strong demand.
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Ancillary revenues accounted for over 50% of total quarterly revenue, highlighting the effectiveness of their diversified revenue model.
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The company achieved an on-time performance of 83.8% and a scheduled completion rate of 99.6%, indicating strong operational efficiency.
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Volaris launched a new app to enhance passenger experience and increase direct sales, reducing dependency on third-party channels.
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The company signed a new code share agreement with Copa Airlines, expanding connectivity between Mexico and Latin America.
Negative Points
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Total operating revenues decreased by 12% year over year, impacted by the depreciation of the Mexican peso against the US dollar.
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The company experienced a 17% decline in quarterly TRASM, reflecting challenges in maintaining revenue per available seat mile.
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First-quarter EBIT was a loss of $10 million, with a margin of minus 1.5%, indicating financial pressure.
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The company revised its full-year ASM growth target from 13%-15% to 8%-9%, reflecting a cautious approach to capacity deployment.
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Geopolitical dynamics and economic uncertainty have created challenges in forecasting and reaffirming full-year EBITDAR guidance.
Q & A Highlights
Q: With RASM down 17% and guidance suggesting further declines, are you seeing the expected consumer response to fare reductions? What gives you confidence in a rebound in the second half of 2025? A: Holger Blankenstein, Executive Vice President, noted that while the second quarter benefits from the Easter shift, external forces are impacting demand. Despite low fares, they expect a rebound in the second half, driven by VFR traffic, which typically increases during high seasons like summer.