Volaris reports financial results for the second quarter of 2022
Total operating income in the quarter was $691 million, up 20%, driven by increased capacity, healthy load factors and strong unit revenue
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 of America, Central and South America, today announces its financial results for the second quarter 20221.
Second Quarter 2022 Highlights2
(All figures are reported in U.S. dollars and compared to 2Q 2021 unless otherwise noted)
Volaris reported double-digit growth in revenue, kept CASM ex-fuel controlled at industry-leading levels, and maintained a strong liquidity position and a healthy balance sheet during the second quarter. Volaris' EBITDAR margin was impacted by rapidly rising fuel prices that increased at a rate faster than its TRASM.
Total operating revenue of $691 million, a 20% increase. Total revenue per available seat mile (TRASM) remained flat at $8.3 cents.
Total operating expenses of $710 million, a 61% increase. Total operating expenses per available seat mile (CASM) increased 35% to $8.5 cents, while CASM ex-fuel decreased 1% to $4.2 cents. Average economic fuel cost increased 107% to $4.4 per gallon.
Net loss of $49 million. Loss per share of $0.04 and loss per ADS of $0.42.
EBITDAR of $107 million, a 54% decrease. EBITDAR margin was 15.5%, a decrease of 25.3 percentage points.
Cash generation of $9 million, with. cash, cash equivalents and restricted cash position of $759 million, representing 30% of the last twelve months total operating revenue.
Net debt-to-LTM EBITDAR ratio of 2.9 times, compared to 4.5 times.
"During the quarter, the Company passed on a portion of higher jet fuel prices through fare increases or, in certain cases, reallocated flights to more profitable routes, while efficiently controlling ex-fuel costs. Volaris has always been disciplined about adding capacity to match passenger demand and has demonstrated flexibility to adapt capacity," said Enrique Beltranena, Chief Executive Officer. "We will continue with our strategy of disciplined growth and will remain nimble and respond decisively to any changes in market conditions in the coming months. We have grown quickly in the last two years allowing us to fill the void left by some of our competitors and, considering we have met our objectives, will return to our historic growth rate during 2023," Mr. Beltranena added.