Volaris Reports Financial Results for the Third Quarter 2021

October 21, 2021

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 / ir@volaris.com 

Media Contact:
Gabriela Fernández / gabriela.fernandez@volaris.com

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
Financial and Operating Indicators
(All metrics are compared to 2019 unless otherwise noted)

Unaudited
(In Mexican pesos, except otherwise indicated)

Three months ended September 30, 2021
(US Dollars)*

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.
(1) Includes schedule and charter.
(2) Includes schedule.
(3) Dollar amounts were converted at average exchange rate of each period.
(4) Includes "Other passenger revenues" and "non-passenger revenues".
(5) Excludes non-derivatives financial instruments.

 

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Financial and Operating Indicators
(All metrics are compared to 2020 unless otherwise noted)

Unaudited
(In Mexican pesos, except otherwise indicated)

Three months ended September 30, 2021
(US Dollars)*

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.
(1) Includes schedule and charter.
(2) Includes schedule.
(3) Dollar amounts were converted at average exchange rate of each period.
(4) Includes "Other passenger revenues" and "non-passenger revenues".
(5) Excludes non-derivatives financial instruments.

 

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Financial and Operating Indicators
(All metrics are compared to 2020 unless otherwise noted)

Unaudited
(In Mexican pesos, except otherwise indicated)

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.
(1) Includes schedule and charter.
(2) Includes schedule.
(3) Dollar amounts were converted at average exchange rate of each period.
(4) Includes "Other passenger revenues" and "non-passenger revenues".
(5) Excludes non-derivatives financial instruments.

 

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)

Three months ended September 30, 2021
(US Dollars)*

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.
(1) 3Q 2021 and 3Q 2020 figures include a benefit from non-derivatives financial instruments by an amount of Ps.26.9 million and Ps.153.5 million, respectively.


 

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.
(1) September YTD 2021 and September YTD 2020 figures include a benefit from non-derivatives financial instruments by an amount of Ps.127.4 million and Ps. 324.9 million, respectively.


 

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Reconciliation of total ancillary revenue per passenger
(All metrics are compared to 2020 unless otherwise noted)

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
(US Dollars)*

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
(All metrics are compared to 2020 unless otherwise noted)

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
(US Dollars)*

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
(All metrics are compared to 2020 unless otherwise noted)


(In millions of Mexican pesos)

September 30,
2021
Unaudited
(US Dollars)*

September 30,
2021
Unaudited

December 31,
2020
Audited


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.
(1) As of September 30, 2021, and December 31, 2020, the figures include a negative foreign exchange effect of Ps.2,043 million and negative
foreign exchange effect of Ps.1,577 million, respectively, related to non-derivative financial instruments.


 

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Consolidated Statement of Cash Flows – Cash Flow Data Summary
(All metrics are compared to 2020 unless otherwise noted)


Unaudited
(In millions of Mexican pesos)

Three months ended September 30, 2021
(US Dollars)*

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
**Includes aircraft rental payments of Ps.1,716 million and Ps.1,724 million for the three months ended period September 30, 2021, and 2020, respectively.


 

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries

Consolidated Statement of Cash Flows – Cash Flow Data Summary
(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





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.
**Includes aircraft rental payments of Ps.6,753 million and Ps.4,350 million for the Nine months ended period September 30, 2021, and 2020, respectively.


 

1The financial information, unless otherwise indicated, is presented in accordance with the International Financial Reporting Standards (IFRS).

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SOURCE Controladora Vuela Compania de Aviacion, S.A.B. de C.V. - Volaris