MEXICO CITY, April 22, 2024 (GLOBE NEWSWIRE) -- Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS, BMV:VOLAR) ("Volaris" or "the Company"), the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central, and South America, today announces its financial results for the first quarter 20241. First Quarter 2024 Highlights(All figures are reported in U.S. dollars and compared to 1Q 2023 unless otherwise noted) Net income of $33 million. Earnings per ADS of $0.29 cents. Total operating revenues of $768 million, a 5.1% increase. Total revenue per available seat mile (TRASM) increased 21% to $9.34 cents. Available seat miles (ASMs) decreased by 13% to 8.2 billion. Total operating expenses of $664 million, representing 86% of total operating revenue. Total operating expenses per available seat mile (CASM) remained relatively flat at $8.08 cents. Average economic fuel cost decreased 13% to $3.01 per gallon. CASM ex-fuel increased 11% to $5.16 cents. EBITDAR of $235 million, a 91% increase. EBITDAR margin was 30.6%, an increase of 14 percentage points. Total cash, cash equivalents, restricted cash, and short-term investments totaled $768 million, representing 23% of the last twelve months' total operating revenue. Net debt-to-LTM EBITDAR2 ratio decreased to 3.1x, compared to 3.8x in 2023. Enrique Beltranena, President & Chief Executive Officer, said: "We are pleased with our business performance as our Volaris team delivered strong first quarter 2024 results. Over the last six months, our primary focus has been directing operations to enhance our customer service and continuing our emphasis on obsessive cost control. Despite the ongoing industry challenges, we continue to execute well and remain focused on delivering shareholder value. The company produced strong results that exceeded expectations. We generated a remarkable increase in TRASM and ancillaries while costs remained controlled. Moreover, Volaris achieved net profitability in the first quarter, posting a net income of $33 million dollars. This marks a significant achievement, as historically, due to seasonality, our first quarters have resulted in net losses; the last time we recorded a net profit in the first quarter was in 2019. Looking forward, booking curves remain solid. As we execute our strategy, we prioritize profitability when allocating capacity and are cautiously optimistic about achieving results in line with our updated guidance." 1 The financial information, unless otherwise indicated, is presented in accordance with the International Financial Reporting Standards (IFRS).2 Includes short-term investments. First Quarter 2024 Consolidated Financial and Operating Highlights(All figures are reported in U.S. dollars and compared to 1Q 2023 unless otherwise noted)   First Quarter Consolidated Financial Highlights 2024   2023   Var. Total operating revenue (millions) 768   731   5.1 % TRASM (cents) 9.34   7.71   21.3 % ASMs (millions, scheduled & charter) 8,217   9,488   (13.4 %) Load Factor (scheduled, RPMs/ASMs) 87.0 % 85.0 % 1.9 pp Passengers (thousands, scheduled & charter) 6,924   8,186   (15.4 %) Fleet (at the end of the period) 134   120   14   Total operating expenses (millions) 664   762   (12.9 %) CASM (cents) 8.08   8.03   0.6 % CASM ex fuel (cents) 5.16   4.65   11.0 % Adjusted CASM ex fuel (cents)3 5.32   4.28   24.3 % Operating income (loss) (EBIT) (millions) 104   (31 ) N/A % EBIT Margin 13.5 % (4.3 %) 17.8 pp Net income (loss) (millions) 33   (71 ) N/A % Net income (loss) margin 4.3 % (9.7 %) 14.0 pp EBITDAR (millions) 235   123   91.1 % % EBITDAR Margin 30.6 % 16.8 % 13.7 pp Net debt-to-LTM EBITDAR4 3.1x 3.8x -0.7x Reconciliation of CASM to Adjusted CASM ex-fuel:     First Quarter Reconciliation of CASM 2024   2023   Var. CASM (cents) 8.08   8.03   0.6 % Fuel expense (2.92 ) (3.38 ) (13.6 %) CASM ex fuel 5.16   4.65   11.0 % Aircraft and engine variable lease expenses5 0.04   (0.37 ) N/A Sale and lease back gains 0.12   0.00   N/A Adjusted CASM ex fuel 5.32   4.28   24.3 % Note: Figures are rounded for convenience purposes. Further detail found in financial and operating indicators. 3 Excludes fuel expense, aircraft and engine variable lease expenses and sale and lease-back gains. 4 Includes short-term investments. 5 Aircraft redeliveries. First Quarter 2024(All figures are reported in U.S. dollars and compared to 1Q 2023 unless otherwise noted) Total operating revenue in the quarter was $768 million, a 5.1% increase driven by solid demand and an improvement in total revenue per passenger. Booked passengers amounted to 6.9 million, a decrease of 15%. Mexican domestic booked passengers decreased 23%, while international booked passengers increased 11%. Total capacity, in terms of available seat miles (ASMs) decreased 13% to 8.2 billion due to the accelerated Pratt & Whitney engine inspections and the resulting aircraft groundings. The load factor for the quarter reached 87.0%, representing an increase of 1.9 percentage points. TRASM increased 21% to $9.34 cents, and total operating revenue per passenger stood at $111, representing a 24% increase. The average base fare was $54, a 15% increase. The total ancillary revenue per passenger was $57, a 35% increase. Ancillary revenue represented 51% of total operating revenue, an increase of 4.1 percentage points. Total operating expenses were $664 million, representing 86% of total operating revenue. CASM totaled $8.08 cents and remained relatively flat year over year. The average economic fuel cost decreased 13% to $3.01 per gallon. CASM ex-fuel increased 11% to $5.16 cents. This increase was mainly caused by the aircraft-on-ground (AOG) due to Pratt and Whitney's engine preventive accelerated inspections and the effect of a larger proportion of international capacity with higher landing and navigation fees. This pressure was partially offset by the remeasurement of previously booked redelivery accruals, which reflect the lease extensions from 2024 to 2026. Comprehensive financing result represented an expense of $57 million, compared to $65 million in the same period of 2023. For the period, the average exchange rate was Ps.17.00 per U.S. dollar, a 9.1% appreciation. At the end of the first quarter, the exchange rate stood at Ps.16.68 per U.S. dollar. Income tax expense for the quarter was $14 million, compared to an income tax benefit of $25 million registered in the same period of 2023. Net income in the quarter was $33 million, with an earnings per ADS of $0.29 cents. EBITDAR for the quarter was $235 million, an increase of 91%, primarily attributable to higher unit revenues and lower fuel prices, while EBITDAR margin stood at 30.6%, an increase of 14 percentage points. Balance Sheet, Liquidity and Capital Allocation As of March 31, 2024, cash, cash equivalents, restricted cash and short-term investments were $768 million, representing 23% of the last twelve months total operating revenue. Net cash flow provided by operating activities was $245 million. Net cash flow used in investing and financing activities was $97 million and $171 million, respectively. The financial debt amounted to $642 million, while total lease liabilities stood at $3,021 million, resulting in a net debt of $2,8956 million. Net debt-to-LTM EBITDAR6 ratio stood at 3.1x, compared to 3.3x in the previous quarter and 3.8x in the same period of 2023. 2024 Guidance For the second quarter of 2024, the Company expects:   2Q'24 2Q'23 (1) 2Q'24 Guidance     ASM growth (YoY) ~ -18% +18.1% TRASM $9.1 to $9.2 cents $7.92 cents CASM ex fuel $5.5 to $5.6 cents $4.82 cents EBITDAR margin 31% to 33% 27.1% Average USD/MXN rate Ps.17.30 to 17.50 Ps.17.72 Average U.S. Gulf Coast jet fuel price $2.60 to $2.70 2.29 (1) For convenience purposes, actual reported figures for 2Q'23 are included.     For the full year 2024, the Company expects:   Updated Guidance Prior Guidance Full Year 2024 Guidance     ASM growth (YoY) -16% to -18% -16% to -18% EBITDAR margin 32% to 34% 31% to 33% CAPEX (2) $400 million ~$300 million Average USD/MXN rate Ps.17.30 to 17.50 Ps.17.70 to Ps.17.90 Average U.S. Gulf Coast jet fuel price $2.60 to $2.70 $2.50 to $2.60 (2) CAPEX net of financed fleet predelivery payments.     The second quarter and full year 2024 outlook presented above includes the compensation that Volaris expects to receive for the projected grounded aircraft resulting from the GTF engine removals, in accordance with the Company's agreement with Pratt & Whitney that was previously announced on December 5, 2023. The Company's outlook is subject to unforeseen disruptions, macroeconomic factors, or other negative impacts that may affect its business, and is based on several assumptions, including the foregoing, which are subject to change and may be outside the control of the Company and its management. The Company's expectations may change if actual results vary from these assumptions. There can be no assurances that Volaris will achieve these results. Fleet During the first quarter, Volaris added two A320ceo and three A321neo aircraft to its fleet, bringing the total number of aircraft to 134. At the end of the quarter, Volaris' fleet had an average age of 5.9 years and an average seating capacity of 197 passengers per aircraft. Of the total fleet, 59% of the aircraft are New Engine Option (NEO) models.   First Quarter Fourth Quarter Total Fleet 2024 2023 Var. 2023 Var. CEO           A319 3 3 - 3 - A320 42 40 2 40 2 A321 10 10 - 10 - NEO           A320 51 50 1 51 - A321 28 17 11 25 3 Total aircraft at the end of the period 134 120 14 129 5 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 ContactRicardo Martínez / Media ContactIsrael Álvarez / Conference Call Details Date: Tuesday, April 23, 2024 Time: 9:00 am Mexico City / 11:00 am New York (USA) (ET) Webcast link: Volaris Webcast (View the live webcast) Dial-in & Live Q&A link: Volaris Dial-in and Live Q&A Click on the call link and complete the online registration form. Upon registering you will receive the dial-in info and a unique PIN to join the call, as well as an email confirmation with the details. Select a method for joining the call: Dial-In: A dial-in number and unique PIN are displayed to connect directly from your phone. Call Me: Enter your phone number and click "Call Me" for an immediate callback from the system. About Volaris *Controladora Vuela Compañía de Aviación, S.A.B. de C.V. ("Volaris" or "the Company") (NYSE:VLRS, 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 198 and its fleet from 4 to 134 aircraft. Volaris offers more than 450 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 fourteen 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. Forward-Looking Statements Statements in this release contain various forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E ...