(RTTNews) - Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS) or Volaris, a Mexican ultra-low-cost carrier, on Monday reported a steep decline in net profit for the fourth quarter, amidst a drop in revenue. The results reflected depreciation of the Mexican peso against the U.S. dollar and a reduction in ASMs.
Commenting on the results, Enrique Beltranena, CEO of Volaris, 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. 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."
For the three-month period to December 31, 2024, the company reported a net income of $46 million, or $0.04 per share, a plunge from $112 million, or $0.10 per share, recorded for the same period last year.
Earnings per ADS slipped to $0.39 from $0.96 per ADS in the previous year. EBIT stood at $117 million, compared with the previous year's $164 million a year ago.
Revenue passenger miles, commonly known as traffic, are 7.796 billion, down from last year's 8.288 billion. The load factor also slipped to 87.3 percent from the previous year's 88.1 percent.
Available seat miles or ASM was 8.930 billion, lower than 9.402 billion in 2023. Booked passengers declined to 7.848 million, compared with 8.247 million in 2023. Total operating revenue per ASM was 9.35 cents, lower than 9.56 cents a year ago.
Revenue was $835 million, down from the previous year's $899 million.
Looking ahead, for the first quarter, the airline expects ASM growth of around 7 percent, compared with -13.4 percent registered for the first quarter of 2024.
The company projects EBITDAR margin to be 28 percent to 29 percent, compared with 30.6 percent, registered for the same period last year.
For the full year, VLRS anticipates ASM growth of around 13 percent, compared with -12.6 percent of 2024. Annual EBITDAR margin is expected to be 34 percent-36 percent, lower than the previous year's 36.3 percent.
VLRS projects full-year capital expenditure to be around $250 million, lower than $350 million in 2024.
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