Mexican low-cost airline Volaris released the final report of its financial results for the second quarter of 2022. The carrier posted double-digit revenue growth, kept CASM excluding fuel «controlled at industry-leading levels», and maintained a «a strong liquidity position and a healthy balance» during the period, it said in an official statement.
According to the company, «demand remains robust across the network», despite the macroeconomic and geopolitical challenges the industry faces. As a result, it expects to continue with its growth plans during the second half of this year.
Enrique Beltranena, CEO of Volaris, commented that the company passed on a fraction of the higher fuel price through fare increases or the reallocation of operations to more profitable routes. «We will continue with our strategy of disciplined growth,» he said. In addition, the executive stressed that they will keep a close eye on market changes in the coming months. «We will return to our historical growth rate during 2023», he concluded.
Volaris’ key financial results for the second quarter of 2022 and comparison with the same period in 2021
- Total operating revenues reached 691 million dollars, a 20% increase. Revenue per available seat mile (TRASM) remained stable at 8.3 cents.
- Total operating expenses reached 710 million dollars, 61% higher than in the second quarter of 2021. Total operating expenses per available seat mile (CASM) increased 35% to 8.5 cents. CASM excluding fuel decreased by 1% to 4.2 cents.
- The average fuel cost during the second quarter was 4.4 dollars per gallon, up 107% compared to the same period in 2021.
- The company reported a net loss of 49 million dollars. Loss per share was 0.04 dollars, while loss per ADS reached 0.42 dollars.
- Earnings before interest, taxes, depreciation, amortisation, depreciation, amortisation and restructuring or rental costs (EBITDAR) reached 107 million, 54% below the figure for the same quarter of 2021. EBITDAR margin was 15.5%, down 25.3 percentage points.
- Cash generation cash of 9 million dollars. In addition, it reported cash equivalents and restricted cash position of 759 million, representing 30% of total operating revenues for the last twelve months.
- The ratio of net debt to reported EBITDAR was 2.9 times. This was down from the 4.5 times reported between April and June last year.
- Volaris carried 7.5 million passengers during the second quarter, 20% more than during the same period in 2021. The company’s total capacity, in terms of available seat miles (ASM), increased 19% to 8.4 billion.
- Number of passengers on domestic flights increased by 22%. In international operations, the figure increased by 14%.
- Finally, the load factor rose 85.6% and was one percentage point below the figure recorded in the same period of 2021.
Fleet of Volaris
- During the second quarter of 2022, it added five Airbus A320neo and four A321neo aircraft.
- As reported by the company, the fleet consisted of 113 aircraft as of June 30th: six Airbus A319, 86 A320 and 21 A321. Half of the A320 family aircraft are already New Engine Option (NEO) versions.
- The average age of the fleet is 5.4 years.
- Volaris expects to end 2022 with «approximately» 115 aircraft in operation.
See also: Volaris resumed flights from Toluca to six destinations
