Volaris Reports Financial Results for the Third Quarter 2022

MEXICO CITY, Oct. 24, 2022 /PRNewswire/ — Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE: VLRS and BMV: VOLAR) (“Volaris” or “The Company”), the ultra-low-cost airline serving Mexico, the United States, Central and South America, at present broadcasts its monetary outcomes for the third quarter 2022[1].

Third Quarter 2022 Highlights[2]

(All figures are reported in U.S. {dollars} and in comparison with 3Q 2021 until in any other case famous)

Volaris reported double-digit development in income, maintained CASM ex-fuel at industry-leading ranges, and completed the quarter with a wholesome steadiness sheet. Volaris will proceed to benefit from its versatile community technique and stimulate demand by its resilient ULCC mannequin.

• Total working income of $769 million, a 20% enhance. Total income per out there seat mile (TRASM) decreased 2.4% to $8.2 cents.
• Total working bills of $734 million, a 52% enhance. Total working bills per out there seat mile (CASM) elevated 24% to $7.85 cents, whereas CASM ex-fuel decreased 0.5% to $4.07 cents. Average financial gasoline value elevated 72.2% to $3.96 per gallon. 
• Net earnings of $40 million. Earnings per share of $0.03 and earnings per ADS of $0.30.
• EBITDAR of $175 million, a 33% lower. EBITDAR margin was 22.8%, a lower of 18.1 share factors.
• Cash, money equivalents and restricted money place totaled $750 million, representing 28% of the final twelve months’ complete working income.
• Net debt-to-LTM EBITDAR ratio of three.4 instances.

“We have constantly anticipated sturdy demand in our visiting friends-and-relatives and leisure markets – markets which present no indicators of a slowdown. ASMs grew by 22% for the third quarter in comparison with 2021 and by 48% in comparison with 2019. Our strategically deliberate development has been each constant and worthwhile.

While sometimes we see load issue peak in July and reductions in the direction of the finish of Summer, on this 12 months our load elements elevated each month in the third quarter, from 84.7% in July, to 84.9% in August, and reached an all-time month-to-month report excessive of 87.4% in September. Forward bookings are strong, and we count on to keep up a robust load issue for the the rest of the 12 months, whereas CASM ex-fuel for the third quarter was beneath management regardless of inflationary pressures” stated Enrique Beltranena, Chief Executive Officer.

Third Quarter 2022 Financial and Operations Highlights[3]
(All figures are reported in U.S. {dollars} and in comparison with 3Q 2021 until in any other case famous)

*Note: Figures are rounded for comfort functions. Further element present in monetary & working indicators.
(1) Excludes gasoline expense, redelivery expense and sale and lease-back positive aspects.
(2) Reconciliation of CASM to Adjusted CASM ex gasoline:

Total working income in the quarter was $769 million, a 20% enhance, pushed by greater capability, sturdy load elements, and seasonality. Moreover, demand has remained sturdy all through the quarter with wholesome reserving curves however sure headwinds (excessive inflation, financial and political uncertainty) occurring in the markets the place Volaris operates.

Volaris transported 8.1 million passengers in the quarter, a rise of twenty-two.2%. Domestic and worldwide passengers elevated 22.7% and 20.2%, respectively; complete capability, when it comes to out there seat miles (ASMs), elevated 22% to 9.4 billion. Load issue reached 85.6%, 0.2 share factors greater than the similar interval in 2021.

TRASM decreased 2.4% to $8.2 cents in the quarter. Average base fare was $56, a lower of 1.8%. Ancillary income per passenger was $39, a 2.5% lower. Ancillary income represented 41% of complete working income, the similar stage as third quarter 2021. Total working income per passenger decreased 2.1% to $95.

Total working bills in the quarter had been $734 million, a 52% enhance, pushed by greater gasoline prices and main upkeep. The common financial gasoline value elevated 72.2% to $3.96 per gallon in the interval. CASM totaled $7.85 cents, 24% greater when in comparison with similar interval of 2021. CASM ex-fuel decreased 0.5% to $4.07 cents attributable to Volaris’ disciplined value management and elevated utilization per plane. Adjusted CASM ex-fuel decreased 4.5% to $3.78 cents.

Comprehensive financing outcome represented a lack of $44 million in the third quarter of 2022, in comparison with a lack of $48 million in the similar interval of 2021. This outcome was impacted by greater rates of interest.

In the third quarter, the common alternate fee was Ps.20.24 per US greenback, a 1.1% and 1.0% depreciation in comparison with the third quarter 2021 and second quarter of 2022, respectively. At the finish of the quarter, the alternate fee stood at Ps.20.31 per US greenback. 

Income tax profit was $49 million, in comparison with the $32 million bills posted in the third quarter of 2021.

Net earnings in the quarter was $40 million, with earnings per share of $0.03 and earnings per ADS of $0.30. In the similar interval of 2021. In the similar interval of 2021. Net earnings was $76 million with earnings per share of $0.06 and earnings per ADS of $0.60.

EBITDAR was $175 million, a lower of 33%, negatively impacted by greater gasoline and touchdown, take-offs, and navigation bills. EBITDAR margin was 22.8%, a lower of 18.1 share factors.

Balance Sheet, Liquidity and Capital Allocation

As of September 30^th, 2022, Volaris required $9 million of money for the third quarter, closing with $750 million in money and money equivalents, representing 28% of the final twelve months complete working income. Net money circulate supplied by working actions was $88 million, whereas money outflows in investing and financing actions had been $51 million and $46 million respectively. Positive internet overseas alternate remained unchanged.

On September 30^th, 2022, internet debt was $2,151 million, which included $242 million of monetary debt, $2,659 million of leasing liabilities, and fewer money, money equivalents and restricted place of $750 million. The internet debt-to-LTM EBITDAR ratio was 3.4 instances, in comparison with 2.9 instances in the second quarter 2022.

Full Year 2022 Outlook

The Company expects to proceed with its development plans regardless of the international macroeconomic and geopolitical challenges confronted all through the 12 months, whereas servicing the sturdy demand seen inside its present community.

Volaris’ full 12 months 2022 steerage. Of word, the Company expects:

• ASM development of 25% in comparison with 2021.
• Operating income in the vary of $2.8 to $3.0 billion.
• CASM ex-fuel enhance of roughly 1% in comparison with 2021.
• EBITDAR margin in the low twenties.
• And lastly, CAPEX of $145 million.  

This outlook assumes a full 12 months common USD/MXN fee between Ps.20.25 to Ps.20.30 and a median financial gasoline worth between $3.85 to $3.90 per gallon; it additionally assumes no vital sudden disruptions associated to COVID-19, macroeconomic elements, or different damaging impacts on its business. The Company’s Full Year 2022 Outlook is predicated on plenty of assumptions, together with the foregoing, which might be topic to alter and could also be outdoors the management of the Company. If precise outcomes differ from these assumptions, the Company’s expectations might change. There could be no assurances that Volaris will obtain these outcomes.

Fleet

During the third quarter, the Company redelivered one A319ceo in September and included one new A320neo to its fleet. As of September 30^th, 2022, Volaris’ fleet was composed of 113 plane (5 A319s, 87 A320s and 21 A321s), of which 51% are New Engine Option (NEO) fashions. Volaris’ fleet had a median of 190 seats per plane and a median age of 5.5 years. The Company plans to finish 2022 with roughly 116 plane.

Investors are urged to rigorously learn the Company’s periodic experiences filed with or supplied to the Securities and Exchange Commission for extra info concerning the Company.

Investor Relations Contact:
Ricardo Martínez / [email protected] 

Media Contact:
Gabriela Fernández / [email protected]

Conference name and webcast particulars                              

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 service, with point-to-point operations, serving Mexico, the United States, Central and South America. Volaris presents low base fares to construct its market, offering high quality service and intensive buyer alternative. Since the starting of operations in March 2006, Volaris has elevated its routes from 5 to greater than 196 and its fleet from 4 to 114 plane. Volaris presents greater than 500 each day flight segments on routes that join 43 cities in Mexico and 28 cities in the United States, Central and South America with the youngest fleet in Mexico. Volaris targets passengers who’re visiting mates and family members, cost-conscious business and leisure vacationers in Mexico, the United States, Central and South America. Volaris has obtained the ESR Award for Social Corporate Responsibility for 13 consecutive years. For extra info, please go to: www.volaris.com.

Forward-looking Statements:

Statements on this launch comprise numerous forward-looking statements inside the that means of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended, which signify the Company’s expectations, beliefs or projections regarding future occasions and monetary traits affecting the monetary situation of our business. When used on this launch, the phrases “expects,” “intends,” “estimates,” “predicts,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “potential,” “outlook,” “may,” “continue,” “will,” “should,” “seeks,” “targets” and related expressions are supposed to determine forward-looking statements. Similarly, statements that describe the Company’s targets, plans or targets, or actions the Company might soak up the future, are forward-looking statements. Forward-looking statements embrace, with out limitation, statements concerning the Company’s full 12 months outlook and intentions and expectations concerning the supply schedule of plane on order, quantity of aircrafts at 12 months finish, quantity of ahead bookings throughout the vacation season, capacity to keep up the load issue, introduced new service routes and buyer financial savings applications. Forward-looking statements shouldn’t be learn as a assure or assurance of future efficiency or outcomes and won’t essentially be correct indications of the instances at, or by, which such efficiency or outcomes can be achieved.  Forward-looking statements are based mostly on info out there at the time these statements are made and/or administration’s good religion perception as of that point with respect to future occasions and are topic to dangers and uncertainties that would trigger precise efficiency or outcomes to vary materially from these expressed in or instructed by the forward-looking statements. Forward-looking statements are topic to a number of elements that would trigger the Company’s precise outcomes to vary materially from the Company’s expectations, together with the aggressive setting in the airline {industry}; the Company’s capacity to maintain prices low; adjustments in gasoline prices; the affect of worldwide financial situations on buyer journey conduct; the Company’s capacity to generate non-ticket income; and authorities regulation. Additional info regarding these, and different elements is contained in the Company’s US Securities and Exchange Commission filings. All forward-looking statements attributable to us or individuals performing on our behalf are expressly certified of their entirety by the cautionary statements set forth above. Forward-looking statements converse solely as of the date of this launch. You mustn’t put undue reliance on any forward-looking statements. We assume no obligation to replace forward-looking statements to mirror precise outcomes, adjustments in assumptions or adjustments in different elements affecting forward-looking info, besides to the extent required by relevant legislation. If we replace a number of forward-looking statements, no inference needs to be drawn that we’ll make extra updates with respect to these or different forward-looking statements.

Supplemental info on Non-IFRS measures

We consider our monetary efficiency by utilizing numerous monetary measures that aren’t efficiency measures beneath International Financial Reporting Standards (“non-IFRS measures”).  These non-IFRS measures embrace CASM, CASM ex-fuel, Adjusted CASM ex-fuel, EBITDAR and Net debt-to-LTM EBITDAR. We outline CASM as complete working bills by out there seat mile. We outline CASM ex-fuel as complete working bills by out there seat mile, excluding gasoline expense. We outline Adjusted CASM ex gasoline as complete working bills by out there seat mile, excluding gasoline expense, redelivery expense and sale and lease again positive aspects. We outline EBITDAR as earnings earlier than curiosity, earnings tax, depreciation and amortization, depreciation of proper of use assents and plane and engine variable lease bills. We outline Net debt-to-LTM EBITDAR as Net debt divided by LTM EBITDAR.

These non-IFRS measures are supplied as supplemental info to the monetary info introduced on this launch that’s calculated and introduced in accordance with International Financial Reporting Standards (“IFRS”), as a result of we consider that they, along side the IFRS monetary info, present helpful info to administration’s, analysts’ and buyers’ total understanding of our working efficiency.

Because non-IFRS measures aren’t calculated in accordance with IFRS, they shouldn’t be thought-about superior to and aren’t supposed to be thought-about in isolation or as an alternative for the associated IFRS measures introduced on this launch and will not be the similar as or corresponding to equally titled measures introduced by different corporations attributable to potential variations in the technique of calculation and in the objects being adjusted.

We encourage buyers to evaluation our monetary statements and different filings with the Securities and Exchange Commission of their entirety for extra info concerning the Company and to not depend on any single monetary measure.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Financial and Operating Indicators

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Financial and Operating Indicators

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Operations

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Operations

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Reconciliation of complete ancillary income per passenger

The following desk exhibits quarterly extra element about the parts of complete ancillary income:

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Reconciliation of complete ancillary income per passenger

The following desk exhibits the 9 months of the 12 months extra element about the parts of complete ancillary income:

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Financial Position

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Cash Flows – Cash Flow Data Summary

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Cash Flows – Cash Flow Data Summary

[1] The monetary info, until in any other case indicated, is introduced in accordance with the International Financial Reporting Standards (IFRS).
[2] As of January 1, 2022, all figures are reported in U.S. {dollars}.
[3] As of January 1, 2022, all figures are reported in U.S. {dollars}.

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SOURCE Controladora Vuela Compania de Aviacion, S.A.B. de C.V. – Volaris