Volaris reports December 2024 traffic results, highlighting a decrease in ASM capacity and an 87.6% load factor.
Quiver AI Summary
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) reported its preliminary traffic results for December 2024, indicating a 4.5% year-over-year decrease in ASM capacity, attributed to inspections of Pratt & Whitney engines. Nonetheless, Volaris transported 2.8 million passengers with a load factor of 87.6%, which is a 2.2 percentage point increase from the previous year. Domestic RPMs fell by 8.3%, while international RPMs rose by 9.0%. CEO Enrique Beltranena expressed satisfaction with the company's strategy and operational performance amidst challenges posed by engine inspections, highlighting a 99% completion rate for the year. Volaris continues to focus on customer satisfaction and network reliability as it progresses into 2025.
Potential Positives
- Volaris transported 2.8 million passengers in December with a load factor of 87.6%, a significant increase of 2.2 percentage points compared to the previous year, indicating strong demand for their services.
- The company has shown improved operational stability, successfully completing more engine inspections than anticipated, which positions them to enhance service reliability moving forward.
- Volaris reported a 99% completion rate for the entire year despite the challenging operating environment, showcasing effectiveness and dedication from their workforce.
- International RPMs increased by 9.0%, reflecting growth opportunities in international markets and the potential for revenue expansion in a key segment.
Potential Negatives
- Volaris experienced a 4.5% decrease in ASM capacity year-over-year, indicating potential operational challenges and capacity constraints.
- Significant declines in both domestic RPMs (8.3%) and passengers transported (5.9%) suggest weakening demand in the domestic market.
- The company reported a substantial 11.8% year-to-date decrease in total RPMs, which raises concerns about ongoing performance trends and future business viability.
FAQ
What were Volaris' December 2024 passenger traffic numbers?
Volaris transported 2.8 million passengers in December 2024 with a load factor of 87.6%.
How did Volaris' capacity change in December 2024?
Volaris' ASM capacity decreased by 4.5% year-over-year due to Pratt & Whitney engine inspections.
What was the load factor for Volaris in December 2024?
The load factor for Volaris in December 2024 was 87.6%, an increase of 2.2 percentage points from the previous year.
How did international and domestic RPMs compare in December 2024?
Domestic RPMs decreased by 8.3%, while international RPMs increased by 9.0% compared to December 2023.
What is Volaris' commitment regarding customer satisfaction?
Volaris is committed to high levels of customer satisfaction and operational excellence, aiming to be the preferred airline in its core markets.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$VLRS Hedge Fund Activity
We have seen 37 institutional investors add shares of $VLRS stock to their portfolio, and 38 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- MILLENNIUM MANAGEMENT LLC added 3,009,100 shares (+729.9%) to their portfolio in Q3 2024
- PERMIAN INVESTMENT PARTNERS, LP removed 1,423,892 shares (-100.0%) from their portfolio in Q3 2024
- MORGAN STANLEY added 1,276,875 shares (+475.3%) to their portfolio in Q3 2024
- LONG FOCUS CAPITAL MANAGEMENT, LLC added 1,266,920 shares (+791.8%) to their portfolio in Q3 2024
- NORTH OF SOUTH CAPITAL LLP added 1,211,813 shares (+29.1%) to their portfolio in Q3 2024
- ANCIENT ART, L.P. added 1,087,561 shares (+272.5%) to their portfolio in Q3 2024
- FRONTIER CAPITAL MANAGEMENT CO LLC removed 934,241 shares (-41.3%) from their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
MEXICO CITY, Jan. 08, 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, reports its
December 2024
preliminary traffic results.
In December, Volaris' ASM capacity decreased by 4.5% year-over-year due to the Pratt & Whitney engine inspections, slightly better than forecast as we recovered more engines than anticipated. Volaris transported 2.8 million passengers during the month with a load factor of 87.6%, a 2.2 pp increase from last year. RPMs for the month declined by 2.1%, with Mexican domestic RPMs down 8.3%, while international RPMs increased by 9.0%. Compared to December 2023, we are now seeing stability across the network and the return to service of aircraft that have completed their required engine inspections. While we anticipate some ongoing fluctuations in ASM production as engine inspections are completed, we remain committed to delivering a reliable network for our customers.
Enrique Beltranena, Volaris’ President and CEO, said
: “We are pleased with the execution of our strategy and continue to prioritize the operational performance and network stability as we work through the Pratt & Whitney required engine inspections. We remain committed to high levels of customer satisfaction and operational excellence, reinforcing Volaris as the preferred airline in its core markets. As a result of the hard work of our ambassadors, we delivered a 99% completion rate for the full year in a challenging operating environment. I would like to thank all of our ambassadors for their efforts in 2024 and look forward to continuing excellence in 2025”.
December 2024 | December 2023 | Variance | YTD December 2024 | YTD December 2023 | Variance | |||||||
RPMs (million, scheduled & charter) | ||||||||||||
Domestic | 1,658 | 1,809 | -8.3% | 18,161 | 22,422 | -19.0% | ||||||
International | 1,112 | 1,020 | 9.0% | 11,344 | 11,027 | 2.9% | ||||||
Total | 2,770 | 2,829 | -2.1 % | 29,505 | 33,449 | -11.8 % | ||||||
ASMs (million, scheduled & charter) | ||||||||||||
Domestic | 1,820 | 2,025 | -10.1% | 20,030 | 25,630 | -21.8% | ||||||
International | 1,340 | 1,286 | 4.2% | 13,960 | 13,260 | 5.3% | ||||||
Total | 3,161 | 3,311 | -4.5 % | 33,990 | 38,890 | -12.6 % | ||||||
Load Factor (%, RPMs/ASMs) | ||||||||||||
Domestic | 91.1 | % | 89.3 | % | 1.8 pp | 90.7% | 87.5% | 3.2 pp | ||||
International | 82.9 | % | 79.3 | % | 3.7 pp | 81.3% | 83.2% | (1.9) pp | ||||
Total | 87.6 | % | 85.4 | % | 2.2 pp | 86.8 % | 86.0 % | 0.8 pp | ||||
Passengers (thousand, scheduled & charter) | ||||||||||||
Domestic | 1,984 | 2,108 | -5.9% | 21,705 | 25,909 | -16.2% | ||||||
International | 777 | 706 | 10.1% | 7,768 | 7,588 | 2.4% | ||||||
Total | 2,761 | 2,813 | -1.9 % | 29,473 | 33,497 | -12.0 % | ||||||
The information included in this report has not been audited and does not provide information on the Company’s future performance. Volaris’ future performance depends on several factors. It cannot be inferred that any period’s performance or its comparison year-over-year will indicate a similar performance in the future. Figures are rounded for convenience purposes.
Glossary
Revenue passenger miles (RPMs):
Number of seats booked by passengers multiplied by the number of miles flown.
Available seat miles (ASMs):
Number of seats available for passengers multiplied by the number of miles flown.
Load factor:
RPMs divided by ASMs and expressed as a percentage.
Passengers:
The total number of passengers booked on all flight segments.
Investor Relations Contact
Ricardo Martínez /
ir@volaris.com
Media Contact
Israel Álvarez /
ialvarez@gcya.net
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 carrier, with point-to-point operations, serving Mexico, the United States, Central, and South America. Volaris offers low base fares to build its market, providing quality service and extensive customer choice. Since the beginning of operations in March 2006, Volaris has increased its routes from 5 to more than 221 and its fleet from 4 to 143 aircraft. Volaris offers more than 500 daily flight segments on routes that connect 44 cities in Mexico and 29 cities in the United States, Central, and South America, with one of the youngest fleets in Mexico. Volaris targets passengers who are visiting friends and relatives, cost-conscious business and leisure travelers in Mexico, the United States, Central, and South America. Volaris has received the ESR Award for Social Corporate Responsibility for fifteen consecutive years. For more information, please visit
ir.volaris.com
. Volaris routinely posts information that may be important to investors on its investor relations website. The Company encourages investors and potential investors to consult the Volaris website regularly for important information about Volaris.
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