Volaris Reports Financial Results for the Third Quarter 2021
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Controladora Vuela Compania de Aviacion, S.A.B. de C.V. - VolarisOct 21, 2021, 18:30 ET
MEXICO CITY, Oct. 21, 2021 /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 of America, Central and South America, today announces its financial results for the third quarter 20211.
Third Quarter 2021 Highlights
(All metrics are compared to 3Q 2019 unless otherwise noted)
Volaris reported double-digit growth in revenue and EBITDAR in the third quarter, due to its resilient business model and disciplined growth strategy.
- Total operating revenue of Ps.12,804 million, a 35% increase. Total revenue per available seat mile (TRASM) increased 12% to Ps.168 cents.
- Operating expenses of Ps.9,682 million, a 24% increase. Operating expenses per available seat mile (CASM) remained unchanged at US$6.33 cents, while CASM ex-fuel increased 2% to US$4.09 cents.
- Net income of Ps.1,515 million with a net margin of 11.8%. Earnings per share of Ps.1.30 and earnings per ADS of US$0.64.
- EBITDAR of Ps.5,235 million, increased 59% with an EBITDAR margin of 40.9%, an increase of 6.3 percentage points.
- Cash generation of Ps.1,965 million with a cash and cash equivalents position of Ps.12,668 million or US$624 million, representing 33% of the last twelve months total operating revenue.
- Net debt-to-LTM EBITDAR ratio of 2.8 times, the lowest level in Volaris' history.
"We demonstrated, again, Volaris' agility and ability to adapt to a challenging demand environment by redeploying capacity to the appropriate markets and by stimulating demand. Moreover, we delivered strong quarterly results in line with the ambitious goals we had set for the third quarter. We were able to obtain these results thanks to our dedicated family of ambassadors and to our loyal and experienced management team," said Enrique Beltranena, President & Chief Executive Officer. "Our ultra-low-cost business model has proven resilient in difficult times and continues to have significant room for further growth," Enrique added.
Third Quarter 2021 Financial and Operations Highlights
(All metrics are compared to 3Q 2019 unless otherwise noted)
Third Quarter | |||
Consolidated Financial Highlights | 2021 | 2019 | Var. |
Total Operating Revenue (Ps. million) | 12,804 | 9,502 | 35% |
TRASM (Ps. cents) | 168 | 150 | 12% |
ASMs (million, scheduled & charter) | 7,667 | 6,341 | 21% |
Load Factor (scheduled, RPMs/ASMs) | 85.4% | 85.1% | 0.3 pp |
Passengers (thousand, scheduled & charter) | 6,650 | 5,620 | 18% |
Fleet (end of period) | 94 | 80 | 14 |
Operating Expenses (Ps. million) | 9,682 | 7,799 | 24% |
CASM (US$ cents) | 6.33 | 6.36 | 0% |
CASM excl. fuel (US$ cents) | 4.09 | 3.99 | 2% |
Operating income (EBIT) (Ps. million) | 3,123 | 1,703 | 83% |
% EBIT Margin | 24.4% | 17.9% | 6.5 pp |
Net income (Ps. million) | 1,515 | 713 | 112% |
% Net income margin | 11.8% | 7.5% | 4.3 pp |
EBITDAR (Ps. million) | 5,235 | 3,291 | 59% |
% EBITDAR Margin | 40.9% | 34.6% | 6.3 pp |
Net debt-to-LTM EBITDAR | 2.8x | 4.0x | -1.2x |
Total operating revenue was Ps.12,804 million, a 35% increase, driven by higher capacity, healthy load factors and stronger unit revenue per passenger. However, demand slowed in the second half of the quarter due to an increase of Covid-19 (Delta variant) cases in Mexico and the United States.
Volaris booked 6.7 million passengers in the quarter, an increase of 18%. Domestic and international passengers increased 19% and 17%, respectively; while total capacity, in terms of available seat miles (ASMs), increased 21% to 7.7 billion. Load factor reached 85.4%, above pre-pandemic levels.
TRASM of Ps.168 cents represented a 12% increase. Average base fare was Ps.1,134, a decrease of 2%. Ancillary revenue per passenger was Ps.805, a 49% increase, due to the continued growth of new and traditional products, such as First Baggage, Seat Selection and More Flexibility. Ancillary revenue represented 42% of total operating revenue, compared to 32% in the same period of 2019. Finally, total revenue per passenger increased 14% to Ps.1,939.
Operating expenses were Ps.9,682 million, a 24% increase, mainly due to capacity growth and the incorporation of new aircraft. The average economic fuel cost per gallon grew 3% to Ps.46.0 per gallon (US$2.30), which totaled a CASM of US$6.33 cents, essentially in line with the same period of 2019. CASM ex-fuel increased 2% to US$4.09 cents.
Comprehensive financing result increased 40% driven by a foreign exchange loss of Ps.234 million, and an increase of 26% of financial cost mainly related to the increase in the Company's fleet. The Mexican peso depreciated 3% against the US dollar, from an average exchange rate of Ps.19.42 per US dollar in the third quarter of 2019 to Ps.20.01 per US dollar during the third quarter of 2021. At the end of the third quarter of 2021, the Mexican peso (Ps.20.31 per US dollar) depreciated 3% compared to the exchange rate at the end of the second quarter of 2021 (Ps.19.80 per US dollar).
Income tax expense was Ps.649 million, compared to Ps.306 million in the third quarter of 2019.
Net income was Ps.1,515 million with a net margin of 11.8%. Earnings per share totaled Ps.1.30 and earnings per ADS were US$0.64.
EBITDAR was Ps.5,235 million, an increase of 59%, due to capacity growth and higher unit revenues. EBITDAR margin was 40.9%, an increase of 6.3 percentage points.
Balance Sheet, Liquidity and Capital Allocation
During the third quarter 2021 Volaris generated Ps.1,965 million in cash. As of September 30, cash and cash equivalents were Ps.12,668 million or US$624 million, representing 33% of the last twelve months total operating revenue. Net cash flow provided by operating activities was Ps.4,220 million, while cash outflows in investing and financing activities were Ps.379 million and Ps.1,876 million, respectively. Positive net foreign exchange difference was Ps.169 million.
As of October 13, 2021, the Company issued Ps.1,500 million of 5-year asset backed trust notes (CEBUR) in Mexico linked to sustainability performance goals, one of the first of its kind for the industry in Latin America; the proceeds will be used to finance the company's sustainable growth. The sustainable objective set by the company is to reduce 35.4% emissions of gCO2/RPK by 2030. Moreover, Volaris' sustainability-linked bond framework received a second opinion from Sustainalytics, considering an ambitious Sustainability Performance Target, with a very strong Key Performance Indicator.
As of the quarter end, net debt was Ps.39,461 million, which included Ps.5,301 million of financial debt, Ps.46,828 million of leasing liabilities, less cash and cash equivalents of Ps. 12,668 million. The net debt-to-LTM EBITDAR ratio was 2.8 times, compared to 4.0 times in the same period of 2019 and 4.5 times in 2Q 2021.
4Q 2021 Outlook
Despite of the recent headwinds of Covid-19, we expect to continue with our disciplined growth strategy for the rest of the year and 2022. With respect to 2019, we expect to grow capacity (ASMs) between 26% to 29% for the fourth quarter. Furthermore, we expect an EBITDAR margin between 31% to 34% for the fourth quarter. Finally, we expect cash and cash equivalents for 2021 year-end balance as percentage of last twelve months´ revenues at approximately 30%, maintaining net debt-to-LTM EBITDAR below 3.0 times. This outlook assumes no pandemic-related or other material disruptions to Volaris' business and an average economic fuel cost of US$2.45 to US$2.70 per gallon.
Fleet
During the third quarter, the Company incorporated two new A320neo aircraft to its fleet. As of September 30, 2021, Volaris' fleet was composed of 94 aircraft (6 A319s, 72 A320s and 16 A321s), with an average age of 5.6 years. Volaris' fleet had an average of 188 seats per aircraft. 81% of its aircraft are sharklet-equipped and 40% are New Engine Option (NEO) models. The Company reaffirms its plans to end 2021 with 101 aircraft and closing the year 2022 with 113 aircraft.
Investors are urged to carefully read the Company's periodic reports filed with or provided to the Securities and Exchange Commission, for additional information regarding the Company.
Investor Relations Contact:
María Elena Rodríguez / Félix Martínez / [email protected]
Media Contact:
Gabriela Fernández / [email protected]
Conference call and webcast details
Date: | Friday, October 22nd, 2021 |
Time: | 9:00 am Mexico City (CT) / 10:00 am New York (USA) (ET) |
United States dial in: | +1-844-204-8586 |
Mexico dial in: | +52-55-8880-8040 |
International dial in: | +1-412-317-6346 |
Participant code: | Volaris |
Webcast & video presentation: | https://webcastlite.mziq.com/cover.html?webcastId=dcb83e09-887e-4056-9223-0409ba22d74a |
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 183 and its fleet from 4 to 96 aircraft. Volaris offers more than 450 daily flight segments on routes that connect 43 cities in Mexico and 27 cities in the United States, Central and South America with the youngest fleet 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 eleven consecutive years. For more information, please visit: www.volaris.com.
Forward-looking Statements:
Statements in this release contain various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which represent the Company's expectations, beliefs or projections concerning future events and financial trends affecting the financial condition of our business. When used in this release, the words "expects," "intends," "estimates," "predicts," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "potential," "outlook," "may," "continue," "will," "should," "seeks," "targets" and similar expressions are intended to identify forward-looking statements. Similarly, statements that describe the Company's objectives, plans or goals, or actions the Company may take in the future, are forward-looking statements. Forward-looking statements include, without limitation, statements regarding the Company's intentions and expectations regarding the delivery schedule of aircraft on order, announced new service routes and customer savings programs. Forward-looking statements should not be read as a guarantee or assurance of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Forward-looking statements are subject to several factors that could cause the Company's actual results to differ materially from the Company's expectations, including the competitive environment in the airline industry; the Company's ability to keep costs low; changes in fuel costs; the impact of worldwide economic conditions on customer travel behavior; the Company's ability to generate non-ticket revenue; and government regulation. Additional information concerning these, and other factors is contained in the Company's Securities and Exchange Commission filings. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date of this release. You should not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries | ||||
Unaudited | Three months ended September 30, 2021 | Three months ended September 30, 2021 | Three months ended September 30, 2019 | Variance |
Total operating revenues (millions) | 631 | 12,804 | 9,502 | 34.8% |
Total operating expenses (millions) | 477 | 9,682 | 7,799 | 24.1% |
EBIT (millions) | 154 | 3,123 | 1,703 | 83.4% |
EBIT margin | 24.4% | 24.4% | 17.9% | 6.5 pp |
Depreciation and amortization (millions) | 83 | 1,681 | 1,363 | 23.3% |
Aircraft and engine variable lease expenses (millions) | 21 | 431 | 226 | 90.9% |
Net income (millions) | 75 | 1,515 | 713 | 112.5% |
Net income margin | 11.8% | 11.8% | 7.5% | 4.3 pp |
Earnings per share: | ||||
Basic | 0.06 | 1.30 | 0.70 | 84.4% |
Diluted | 0.06 | 1.30 | 0.70 | 84.4% |
Earnings per ADS: | ||||
Basic | 0.64 | 13.00 | 7.05 | 84.4% |
Diluted | 0.64 | 13.00 | 7.05 | 84.4% |
Weighted average shares outstanding: | ||||
Basic | - | 1,165,976,677 | 1,011,876,677 | 15.2% |
Diluted | - | 1,165,976,677 | 1,011,876,677 | 15.2% |
Available seat miles (ASMs) (millions) (1) | - | 7,667 | 6,341 | 20.9% |
Domestic | - | 5,397 | 4,328 | 24.7% |
International | - | 2,270 | 2,014 | 12.7% |
Revenue passenger miles (RPMs) (millions) (1) | - | 6,551 | 5,398 | 21.4% |
Domestic | - | 4,714 | 3,785 | 24.5% |
International | - | 1,837 | 1,613 | 13.9% |
Load factor (2) | - | 85.4% | 85.1% | 0.3 pp |
Domestic | - | 87.3% | 87.5% | (0.1) pp |
International | - | 80.9% | 80.1% | 0.9 pp |
Total operating revenue per ASM (TRASM) (cents) (1)(5) | 8.3 | 168.2 | 150.3 | 11.9% |
Total ancillary revenue per passenger (4)(5) | 39.6 | 805 | 539 | 49.3% |
Total operating revenue per passenger (5) | 95.5 | 1,939 | 1,696 | 14.3% |
Operating expenses per ASM (CASM) (cents) (1)(5) | 6.2 | 126.6 | 123.4 | 2.6% |
Operating expenses per ASM (CASM) (US cents) (1)(3)(5) | - | 6.33 | 6.36 | (0.4%) |
CASM ex fuel (cents) (1)(5) | 4.0 | 81.8 | 77.5 | 5.5% |
CASM ex fuel (US cents) (1)(3)(5) | - | 4.09 | 3.99 | 2.4% |
Booked passengers (thousands) (1) | - | 6,650 | 5,620 | 18.3% |
Departures (1) | - | 41,820 | 35,777 | 16.9% |
Block hours (1) | - | 105,202 | 90,323 | 16.5% |
Fuel gallons consumed (millions) | - | 74.7 | 64.9 | 15.1% |
Average economic fuel cost per gallon (5) | 2.3 | 46.0 | 44.9 | 2.6% |
Aircraft at end of period | - | 94 | 80 | 17.5% |
Average aircraft utilization (block hours) | - | 13.0 | 13.2 | (1.3%) |
Average exchange rate | - | 20.01 | 19.42 | 3.0% |
End of period exchange rate | - | 20.31 | 19.64 | 3.4% |
*Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only. | ||||
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries | ||||
Unaudited | Three months ended September 30, 2021 | Three months ended September 30, 2021 | Three months ended September 30, 2020 | Variance |
Total operating revenues (millions) | 631 | 12,804 | 4,724 | 171.1% |
Total operating expenses (millions) | 477 | 9,682 | 6,951 | 39.3% |
EBIT (millions) | 154 | 3,123 | (2,227) | N/A |
EBIT margin | 24.4% | 24.4% | (47.1%) | 71.5 pp |
Depreciation and amortization (millions) | 83 | 1,681 | 1,509 | 11.4% |
Aircraft and engine variable lease expenses (millions) | 21 | 431 | 537 | (19.8%) |
Net income (loss) (millions) | 75 | 1,515 | (2,175) | N/A |
Net income (loss) margin | 11.8% | 11.8% | (46.0%) | 57.9 pp |
Earnings (loss) per share: | ||||
Basic | 0.06 | 1.30 | (2.15) | N/A |
Diluted | 0.06 | 1.30 | (2.15) | N/A |
Earnings (loss) per ADS: | ||||
Basic | 0.64 | 13.00 | (21.50) | N/A |
Diluted | 0.64 | 13.00 | (21.50) | N/A |
Weighted average shares outstanding: | ||||
Basic | - | 1,165,976,677 | 1,011,876,677 | 15.2% |
Diluted | - | 1,165,976,677 | 1,011,876,677 | 15.2% |
Available seat miles (ASMs) (millions) (1) | - | 7,667 | 4,763 | 61.0% |
Domestic | - | 5,397 | 3,685 | 46.5% |
International | - | 2,270 | 1,078 | 110.5% |
Revenue passenger miles (RPMs) (millions) (1) | - | 6,551 | 3,496 | 87.4% |
Domestic | - | 4,714 | 2,711 | 73.9% |
International | - | 1,837 | 785 | 134.0% |
Load factor (2) | - | 85.4% | 73.4% | 12.1 pp |
Domestic | - | 87.3% | 73.6% | 13.8 pp |
International | - | 80.9% | 72.8% | 8.1 pp |
Total operating revenue per ASM (TRASM) (cents) (1)(5) | 8.3 | 168.2 | 102.8 | 63.6% |
Total ancillary revenue per passenger (4)(5) | 39.6 | 805 | 614 | 31.0% |
Total operating revenue per passenger (5) | 95.5 | 1,939 | 1,411 | 37.4% |
Operating expenses per ASM (CASM) (cents) (1)(5) | 6.2 | 126.6 | 149.2 | (15.1%) |
Operating expenses per ASM (CASM) (US cents) (1)(3)(5) | - | 6.33 | 6.75 | (6.2%) |
CASM ex fuel (cents) (1)(5) | 4.0 | 81.8 | 111.3 | (26.5%) |
CASM ex fuel (US cents) (1)(3)(5) | - | 4.09 | 5.03 | (18.8%) |
Booked passengers (thousands) (1) | - | 6,650 | 3,470 | 91.7% |
Departures (1) | - | 41,820 | 24,721 | 69.2% |
Block hours (1) | - | 105,202 | 62,678 | 67.8% |
Fuel gallons consumed (millions) | - | 74.7 | 44.9 | 66.5% |
Average economic fuel cost per gallon (5) | 2.3 | 46.0 | 40.2 | 14.6% |
Aircraft at end of period | - | 94 | 84 | 11.9% |
Average aircraft utilization (block hours) | - | 13.0 | 10.6 | 23.1% |
Average exchange rate | - | 20.01 | 22.11 | (9.5%) |
End of period exchange rate | - | 20.31 | 22.46 | (9.6%) |
*Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only. | ||||
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries | ||||
Unaudited | Nine months ended September 30, 2021 (US Dollars)* | Nine months ended September 30, 2021 | Nine months ended September 30, 2020 | Variance |
Total operating revenues (millions) | 1,512 | 30,708 | 14,074 | 118.2% |
Total operating expenses (millions) | 1,264 | 25,674 | 18,287 | 40.4% |
EBIT (millions) | 248 | 5,035 | (4,213) | N/A |
EBIT margin | 16.4% | 16.4% | (29.9%) | 46.3 pp |
Depreciation and amortization (millions) | 236 | 4,799 | 4,402 | 9.0% |
Aircraft and engine rent expenses (millions) | 68 | 1,381 | 1,338 | 3.2% |
Net income (loss) (millions) | 114 | 2,320 | (5,191) | N/A |
Net income (loss) margin | 7.6% | 7.6% | (36.9%) | 44.4 pp |
Earnings (loss) per share: | ||||
Basic | 0.10 | 1.99 | (5.13) | N/A |
Diluted | 0.10 | 1.99 | (5.13) | N/A |
Earnings (loss) per ADS: | ||||
Basic | 0.98 | 19.90 | (51.30) | N/A |
Diluted | 0.98 | 19.90 | (51.30) | N/A |
Weighted average shares outstanding: | ||||
Basic | - | 1,165,976,677 | 1,011,876,677 | 15.2% |
Diluted | - | 1,165,976,677 | 1,011,876,677 | 15.2% |
Available seat miles (ASMs) (millions) (1) | - | 20,074 | 12,295 | 63.3% |
Domestic | - | 14,447 | 9,140 | 58.1% |
International | - | 5,627 | 3,156 | 78.3% |
Revenue passenger miles (RPMs) (millions) (1) | - | 16,835 | 9,800 | 71.8% |
Domestic | - | 12,394 | 7,307 | 69.6% |
International | - | 4,440 | 2,493 | 78.1% |
Load factor (2) | - | 83.9% | 79.7% | 4.2 pp |
Domestic | - | 85.8% | 79.9% | 5.8 pp |
International | - | 78.9% | 79.0% | (0.1) pp |
Total operating revenue per ASM (TRASM) (cents) (1)(5) | 7.6 | 154.5 | 116.4 | 32.7% |
Total ancillary revenue per passenger (4)(5) | 38.8 | 788 | 591 | 33.4% |
Total operating revenue per passenger (5) | 89.2 | 1,811 | 1,453 | 24.6% |
Operating expenses per ASM (CASM) (cents) (1)(5) | 6.3 | 128.5 | 151.4 | (15.1%) |
Operating expenses per ASM (CASM) (US cents) (1)(3)(5) | - | 6.39 | 6.95 | (8.1%) |
CASM ex fuel (cents) (1)(5) | 4.3 | 86.9 | 111.2 | (21.9%) |
CASM ex fuel (US cents) (1)(3)(5) | - | 4.32 | 5.10 | (15.5%) |
Booked passengers (thousands) (1) | - | 17,124 | 9,852 | 73.8% |
Departures (1) | - | 109,440 | 66,167 | 65.4% |
Block hours (1) | - | 275,096 | 168,788 | 63.0% |
Fuel gallons consumed (millions) | - | 194.5 | 119.9 | 62.3% |
Average economic fuel cost per gallon (5) | 2.1 | 43.0 | 41.2 | 4.4% |
Aircraft at end of period | - | 94 | 84 | 11.9% |
Average aircraft utilization (block hours) | - | 12.2 | 11.1 | 10.4% |
Average exchange rate | - | 20.13 | 21.79 | (7.6%) |
End of period exchange rate | - | 20.31 | 22.46 | (9.6%) |
*Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only. | ||||
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Consolidated Statement of Operations (All metrics are compared to 2020 unless otherwise noted) | |||||
Unaudited | Three months ended September 30, 2021 | Three months ended September 30, 2021 | Three months ended September 30, 2020 | Variance | |
Operating revenues: | |||||
Passenger revenues | 613 | 12,445 | 4,640 | 168.2% | |
Fare revenues | 371 | 7,542 | 2,764 | 172.9% | |
Other passenger revenues | 241 | 4,903 | 1,876 | 161.4% | |
Non-passenger revenues | 22 | 447 | 255 | 75.4% | |
Other non-passenger revenues | 19 | 389 | 206 | 89.1% | |
Cargo | 3 | 58 | 49 | 18.0% | |
Non-derivatives financial instruments | (4) | (88) | (171) | (48.6%) | |
Total operating revenues | 631 | 12,804 | 4,724 | 171.1% | |
Other operating income | (2) | (44) | (267) | (83.5%) | |
Fuel expense, net (1) | 168 | 3,410 | 1,648 | 106.9% | |
Landing, take-off and navigation expenses | 75 | 1,528 | 1,028 | 48.7% | |
Depreciation of right of use assets | 69 | 1,410 | 1,278 | 10.4% | |
Salaries and benefits | 61 | 1,236 | 865 | 42.8% | |
Sales, marketing and distribution expenses | 28 | 577 | 964 | (40.1%) | |
Maintenance expenses | 25 | 507 | 315 | 61.0% | |
Aircraft and engine variable lease expenses | 21 | 431 | 537 | (19.8%) | |
Other operating expenses | 18 | 357 | 352 | 1.2% | |
Depreciation and amortization | 13 | 270 | 231 | 17.1% | |
Operating expenses | 477 | 9,682 | 6,951 | 39.3% | |
Operating income (loss) | 154 | 3,123 | (2,227) | N/A | |
Finance income | 1 | 20 | 17 | 21.4% | |
Finance cost | (37) | (744) | (730) | 1.9% | |
Exchange (loss) gain, net | (12) | (234) | 186 | N/A | |
Comprehensive financing result | (47) | (958) | (527) | 81.7% | |
Income (loss) before income tax | 107 | 2,165 | (2,754) | N/A | |
Income tax (expense) benefit | (32) | (649) | 579 | N/A | |
Net income (loss) | 75 | 1,515 | (2,175) | N/A | |
* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only. | |||||
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Consolidated Statement of Operations (All metrics are compared to 2020 unless otherwise noted) | ||||||
Unaudited (In millions of Mexican pesos) | Nine months ended September 30, 2021 (US Dollars)* | Nine months ended September 30, 2021 | Nine months ended September 30, 2020 | Variance | ||
Operating revenues: | ||||||
Passenger revenues | 1,464 | 29,720 | 13,624 | 118.1% | ||
Fare revenues | 862 | 17,508 | 8,491 | 106.2% | ||
Other passenger revenues | 601 | 12,212 | 5,133 | 137.9% | ||
Non-passenger revenues | 63 | 1,287 | 688 | 87.1% | ||
Other non-passenger revenues | 55 | 1,114 | 555 | 100.6% | ||
Cargo | 9 | 173 | 132 | 30.5% | ||
Non-derivatives instruments | (15) | (298) | (237) | 25.7% | ||
Total operating revenues | 1,512 | 30,708 | 14,074 | 118.2% | ||
Other operating income | (8) | (153) | (568) | (73.1%) | ||
Fuel expense, net (1) | 406 | 8,239 | 4,614 | 78.6% | ||
Landing, take-off and navigation expenses | 210 | 4,267 | 2,943 | 45.0% | ||
Depreciation of right of use assets | 198 | 4,030 | 3,752 | 7.4% | ||
Salaries and benefits | 166 | 3,370 | 2,470 | 36.4% | ||
Maintenance expenses | 70 | 1,415 | 714 | 98.2% | ||
Sales, marketing and distribution expenses | 70 | 1,413 | 1,506 | (6.2%) | ||
Aircraft and engine variable lease expenses | 68 | 1,381 | 1,338 | 3.2% | ||
Other operating expenses | 46 | 943 | 869 | 8.4% | ||
Depreciation and amortization | 38 | 769 | 650 | 18.3% | ||
Operating expenses | 1,264 | 25,674 | 18,287 | 40.4% | ||
Operating income (loss) | 248 | 5,035 | (4,213) | N/A | ||
Finance income | 3 | 53 | 93 | (42.9%) | ||
Finance cost | (96) | (1,950) | (2,523) | (22.7%) | ||
Exchange gain (loss), net | 9 | 177 | (419) | N/A | ||
Comprehensive financing result | (85) | (1,720) | (2,849) | (39.6%) | ||
Income (loss) before income tax | 163 | 3,315 | (7,062) | N/A | ||
Income tax (expense) benefit | (49) | (994) | 1,872 | N/A | ||
Net income (loss) | 114 | 2,320 | (5,191) | N/A | ||
* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only. | ||||||
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Reconciliation of total ancillary revenue per passenger The following table shows quarterly additional detail about the components of total ancillary revenue: | ||||
Unaudited (In millions of Mexican pesos) | Three months ended September 30, 2021 | Three months ended September 30, 2021 | Three months ended September 30, 2020 | Variance |
Other passenger revenues | 241 | 4,903 | 1,876 | 161.4% |
Non-passenger revenues | 22 | 447 | 255 | 75.4% |
Total ancillary revenues | 263 | 5,350 | 2,131 | 151.1% |
Booked passengers (thousands) (1) | - | 6,650 | 3,470 | 91.7% |
Total ancillary revenue per passenger | 40 | 805 | 614 | 31.0% |
* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only. (1) Includes schedule and charter. | ||||
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Reconciliation of total ancillary revenue per passenger The following table shows the first nine months of the year additional detail about the components of total ancillary revenue: | ||||
Unaudited (In millions of Mexican pesos) | Nine months ended September 30, 2021 | Nine months ended September 30, 2021 | Nine months ended September 30, 2020 | Variance |
Other passenger revenues | 601 | 12,212 | 5,133 | 137.9% |
Non-passenger revenues | 63 | 1,287 | 688 | 87.1% |
Total ancillary revenues | 664 | 13,499 | 5,821 | 131.9% |
Booked passengers (thousands) (1) | - | 17,124 | 9,852 | 73.8% |
Total ancillary revenue per passenger | 39 | 788 | 591 | 33.4% |
* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only. (1) Includes schedule and charter. | ||||
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Consolidated Statement of Financial Position | ||||
(In millions of Mexican pesos) | September 30, | September 30, | December 31, | |
Assets | ||||
Cash and cash equivalents | 624 | 12,668 | 10,103 | |
Accounts receivable | 137 | 2,792 | 2,027 | |
Inventories | 14 | 286 | 279 | |
Prepaid expenses and other current assets | 42 | 855 | 850 | |
Financial instruments | - | - | - | |
Guarantee deposits | 80 | 1,632 | 1,142 | |
Total current assets | 898 | 18,232 | 14,402 | |
Rotable spare parts, furniture and equipment, net | 397 | 8,066 | 7,281 | |
Right of use assets | 1,823 | 37,010 | 34,316 | |
Intangible assets, net | 8 | 161 | 192 | |
Financial instruments | - | 2 | - | |
Deferred income taxes | 105 | 2,136 | 3,129 | |
Guarantee deposits | 455 | 9,239 | 8,425 | |
Other assets | 4 | 74 | 119 | |
Other long- term assets | 17 | 352 | 325 | |
Total non-current assets | 2,809 | 57,041 | 53,787 | |
Total assets | 3,707 | 75,273 | 68,189 | |
Liabilities | ||||
Unearned transportation revenue | 312 | 6,330 | 5,851 | |
Accounts payable | 90 | 1,833 | 2,365 | |
Accrued liabilities | 182 | 3,690 | 2,356 | |
Lease liabilities | 287 | 5,823 | 6,484 | |
Other taxes and fees payable | 132 | 2,671 | 2,236 | |
Income taxes payable | - | 2 | 4 | |
Financial instruments | - | - | 10 | |
Financial debt | 218 | 4,430 | 1,559 | |
Other liabilities | 8 | 159 | 101 | |
Total short-term liabilities | 1,228 | 24,939 | 20,966 | |
Financial debt | 43 | 871 | 3,796 | |
Accrued liabilities | 13 | 264 | 67 | |
Lease liabilities | 2,019 | 41,005 | 37,646 | |
Other liabilities | 161 | 3,272 | 2,668 | |
Employee benefits | 3 | 59 | 51 | |
Deferred income taxes | 10 | 203 | 200 | |
Total long-term liabilities | 2,249 | 45,674 | 44,427 | |
Total liabilities | 3,477 | 70,613 | 65,393 | |
Equity | ||||
Capital stock | 169 | 3,426 | 3,426 | |
Treasury shares | (9) | (187) | (224) | |
Contributions for future capital increases | - | - | - | |
Legal reserve | 14 | 291 | 291 | |
Additional paid-in capital | 230 | 4,677 | 4,720 | |
Retained losses | (76) | (1,535) | (3,855) | |
Accumulated other comprehensive losses (1) | (99) | (2,011) | (1,562) | |
Total equity | 229 | 4,660 | 2,796 | |
Total liabilities and equity | 3,707 | 75,273 | 68,189 | |
Weighted average shares outstanding | 1,165,976,677 | 1,165,976,677 | ||
* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only. | ||||
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Consolidated Statement of Cash Flows – Cash Flow Data Summary | ||||
Unaudited | Three months ended September 30, 2021 | Three months ended September 30, 2021 | Three months ended September 30, 2020 | |
Net cash flow provided by (used in) operating activities | 208 | 4,220 | (113) | |
Net cash flow used in investing activities | (19) | (379) | (179) | |
Net cash flow used in financing activities ** | (92) | (1,876) | (1,357) | |
Increase (decrease) in cash and cash equivalents | 97 | 1,965 | (1,649) | |
Net foreign exchange differences | 8 | 169 | (163) | |
Cash and cash equivalents at beginning of period | 519 | 10,534 | 10,013 | |
Cash and cash equivalents at end of period | 624 | 12,668 | 8,202 | |
*Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only | ||||
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries Consolidated Statement of Cash Flows – Cash Flow Data Summary | |||
Unaudited (In millions of Mexican pesos) | Nine months ended September 30, 2021 (US Dollars)* | Nine months ended September 30, 2021 | Nine months ended September 30, 2020 |
Net cash flow provided by operating activities | 531 | 10,779 | 3,290 |
Net cash flow used in investing activities | (66) | (1,345) | (145) |
Net cash flow used in financing activities ** | (346) | (7,017) | (4,405) |
Increase (decrease) in cash and cash equivalents | 119 | 2,417 | (1,260) |
Net foreign exchange differences | 7 | 148 | 1,482 |
Cash and cash equivalents at beginning of period | 498 | 10,103 | 7,980 |
Cash and cash equivalents at end of period | 624 | 12,668 | 8,202 |
* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only. | |||
1The financial information, unless otherwise indicated, is presented in accordance with the International Financial Reporting Standards (IFRS).
SOURCE Controladora Vuela Compania de Aviacion, S.A.B. de C.V. - Volaris
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