Volaris Reports First Quarter 2019 Results: 9.0% TRASM Increase, 5.8% Reduction of Unit Cost Excluding Fuel and Cash Flow Generation
MEXICO CITY, April 26, 2019 /PRNewswire/ -- Volaris* (NYSE: VLRS and BMV: VOLAR), the ultra-low-cost airline serving Mexico, the United States and Central America, today announced its financial results for the first quarter 2019.
The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS).
First Quarter 2019 Highlights
- Total operating revenues were Ps.7,192 million for the first quarter, an increase of 22.9% year over year.
- Total ancillary revenues were Ps.2,563 million for the first quarter, an increase of 30.5% year over year. Total ancillary revenues per passenger for the first quarter reached Ps.517, increasing 12.1% year over year. Total ancillary revenues represented 35.6% of the total operating revenues for the first quarter 2019, increasing 2 percentage points with respect to the same period of last year.
- Total operating revenues per available seat mile (TRASM) totaled Ps.126.1 cents for the first quarter, an increase of 9.0% year over year.
- Operating expenses per available seat mile (CASM) were Ps.125.7 cents for the first quarter, a decrease of 0.7% year over year; with an average economic fuel cost per gallon of Ps.46.0 for the first quarter, an increase of 14.8% year over year.
- Operating expenses excluding fuel, per available seat mile (CASM ex fuel) reached Ps.78.6 cents for the first quarter, a decrease of 5.8% year over year.
- Operating income was Ps.26 million for the first quarter, an improvement compared with the operating loss of Ps.545 million for the same period of last year. Operating margin for the first quarter was 0.4%, an improvement in margin of 9.7 percentage points year over year.
- Net income was Ps.519 million (Ps.0.51 per share / US$0.26 per ADS), with a net margin of 7.2% for the first quarter.
- At the close of the first quarter, the Mexican peso had appreciated 1.5% against the U.S. dollar with respect to the end of period exchange rate of the previous quarter (Ps.19.68 per US dollar). The Company booked a foreign exchange gain of Ps.1,154 million as a consequence of our U.S. dollar net monetary liability position, as result of the adoption of IFRS16.
- Net cash flow provided by operating activities was Ps.3,731 million, in conjunction with cash flow used in investing activities of Ps.379 million and in financing activities of Ps. 2,063 million. The negative net foreign exchange difference was Ps.82 million, with net cash generation in the first quarter of Ps.1,208 million. As of March 31, 2019, cash and cash equivalents were Ps.7,071 million.
Resilient Macroeconomics, Domestic Consumer Demand with Peso Depreciation and Fuel Price Pressures
- Resilient macroeconomics and domestic consumer demand: The macroeconomic indicators in Mexico during the first quarter were stable, with same store sales[1] increasing 2.1% year over year; remittances[2] increased 6.4% year over year during first two months of the year; and the Mexican Consumer Confidence Balance Indicator (BCC) [3] increasing in the first quarter 36% year over year.
- Air traffic volume increase: The Mexican DGAC reported overall passenger volume growth for Mexican carriers of 5.6% year over year for the first two months of 2019; domestic overall passenger volume increased 5.3%, while international overall passenger volume remained at the same level.
- Exchange rate volatility: The Mexican peso depreciated 2.4% year over year against the US dollar, from an average exchange rate of Ps.18.76 pesos per US dollar in the first quarter 2018 to Ps.19.22 pesos per US dollar during the first quarter 2019. At the end of the first quarter, the Mexican peso appreciated 1.5% with respect to the end of period exchange rate of the previous quarter. The Company booked a foreign exchange gain of Ps.1,154 million as a consequence of our US dollar net monetary liability position, resulting from the adoption of IFRS16.
- Higher fuel prices: The average economic fuel cost per gallon increased 14.8% to Ps.46.0 per gallon (US$2.4) in the first quarter 2019, year over year.
Passenger Traffic Stimulation, Further Ancillary Revenue Expansion, and Positive TRASM Growth
- Passenger traffic stimulation: Volaris booked 5.0 million passengers in the first quarter 2019, up 16.4% year over year. Volaris traffic (measured in terms of revenue passenger miles, or RPMs) increased 14.2% year over year. System load factor during the first quarter increased 1.0 percentage point to 83.2% year over year.
- Positive TRASM growth: For the first quarter 2019, TRASM increased 9.0% year over year. During the first quarter 2019, the total capacity, in terms of ASMs, increased 12.8% year over year.
- Total ancillary revenue growth: For the first quarter 2019, total ancillary revenues increased 30.5% year over year. Total ancillary revenues per passenger for the first quarter of 2019 increased 12.1% year over year. The total ancillary revenue generation continues to grow with new and matured products, appealing to customers' needs, representing 35.6% of total operating revenues for the first quarter, up 2 percentage points year over year.
- New routes: Volaris began operations in 16 new domestic routes from or to its focus cities Mexico City, Guadalajara, Tijuana and others. Additionally, Volaris launched 17 routes, 10 domestic (Mexico to Ciudad Juarez, Puerto Escondido and Durango; Queretaro to Chihuahua and Puerto Vallarta; Guadalajara to Durango and Queretaro; Monterrey to Oaxaca and Los Cabos; Ciudad Juarez to Chihuahua) and 7 international (Mexico and Guadalajara to El Salvador; Durango to Dallas; Puerto Vallarta to Phoenix; Queretaro to Chicago; Aguascalientes to Chicago (Midway); and Chihuahua to Albuquerque.
The Cost Control Discipline Offset Fuel Price Pressure and Peso Depreciation
- CASM and CASM ex fuel for the first quarter 2019 reached Ps.125.7 (US$6.5 cents) and Ps.78.6 cents (US$4.1 cents), respectively. This represented a decrease of 0.7% and 5.8%, respectively; mainly driven by tightening cost control discipline, despite the higher average economic fuel cost per gallon of 14.8% and an average exchange rate depreciation of 2.4%.
Young and Fuel-efficient Fleet
- During first quarter 2019, the Company incorporated one aircraft (A321 neo) to its fleet; during this quarter no redeliveries were registered. As of March 31, 2019, Volaris' fleet was composed of 78 aircraft (8 A319s, 55 A320s and 15 A321s), with an average age of 4.8 years. At the end of the first quarter 2019, Volaris' fleet had an average of 186 seats, 74% of which were in sharklet-equipped aircraft, and 22% were NEO.
Solid Balance Sheet and Good Liquidity
- Net cash flow provided by operating activities was Ps.3,731 million, in conjunction with cash flow used in investing activities of Ps.379 million and in financing activities of Ps. 2,063 million; negative net foreign exchange difference was Ps.82 million, while the net cash generation in the first quarter was Ps.1,208 million. As of March 31, 2019, cash and cash equivalents were Ps.7,071 million, representing 24.7% of last twelve months operating revenues. Volaris registered negative net debt (or a positive net cash position) of Ps.4,018 million (excluding lease liability recognized under IFRS16 adoption) and total equity of Ps.3,624 million.
Transition to IFRS 16
- The Company adopted IFRS 16 as of January 1st, 2019, using the full retrospective method. The cumulative effect of adopting IFRS 16 has been recognized as an adjustment to the opening balance as of January 1st, 2017 as an increase in assets and liabilities and an adjustment in the retained earnings. The full disclosure of this initial adoption is included in the Company´s 2018 annual report.
- This quarterly earnings release includes supplemental information for comparable purposes, with recast 2018 figures with the IFRS 16 adoption effects and were derived from unaudited financial statements included in the quarterly reports on Form 6-K during the year ended as of December 31, 2018.
- Since all the aircraft and engine lease contracts are denominated in USDs, starting on March 25, 2019, the Company established a hedge on its USD denominated revenues using the lease liabilities denominated in USD as a hedge instrument. This hedging relationship is designated as a cash flow hedge of forecasted revenues to mitigate the volatility of the foreign exchange variation arising from the revaluation of its lease liabilities. The impact of this hedge will be presented as part of the total operating revenues; however, it was not material for the results of this first quarter.
- Additionally, on the same date, the Company established a hedge on a portion of its forecasted fuel expense using as hedge instrument a portion of its USD denominated monetary assets. This hedging relationship is designated as a cash flow hedge of forecasted fuel expense to mitigate the volatility of the foreign exchange variation arising from the revaluation of this portion of USD denominated monetary asset. The impact of this hedge will be presented as part of the total fuel expense; however, it was not material for the results of this first quarter.
Investors are urged to carefully read the Company's periodic reports filed with or furnished to the Securities and Exchange Commission, for additional information regarding the Company.
Conference Call/Webcast Details:
Presenters for the Company: |
Mr. Enrique Beltranena, CEO Mr. Holger Blankenstein, Airline EVP Ms. Sonia Jerez Burdeus, VP & CFO |
Date: |
Friday, April 26, 2019 |
Time: |
10:00 am U.S. EDT (9:00 am Mexico City Time) |
United States dial in (toll free): |
1-877-830-2576 |
Mexico dial in (toll free): |
001-800-514-6145 |
Brazil dial in (toll free): |
0-800-891-6744 |
International dial in: |
+ 1-785-424-1726 |
Participant passcode: |
VOLARIS (8652747) |
Webcast will be available at: |
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 and Central America. Volaris offers low base fares to build its market, providing quality service and extensive customer choice. Since beginning operations in March 2006, Volaris has increased its routes from five to more than 182 and its fleet from four to 78 aircraft. Volaris offers more than 392 daily flight segments on routes that connect 40 cities in Mexico and 25 cities in the United States and Central America with the youngest fleet in Mexico. Volaris targets passengers who are visiting friends and relatives, cost-conscious business people and leisure travelers in Mexico and to select destinations in the United States and Central America. Volaris has received the ESR Award for Social Corporate Responsibility for eight 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 a number of 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 revenues; 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 |
||||
Unaudited |
Three months |
Three months |
Three months (Adjusted) |
Variance |
(In Mexican pesos, except otherwise indicated) |
(US Dollars)* |
(%) |
||
Total operating revenues (millions) |
371 |
7,192 |
5,850 |
22.9% |
Total operating expenses (millions) |
370 |
7,166 |
6,395 |
12.1% |
EBIT (millions) |
1 |
26 |
(545) |
NA |
EBIT margin |
0.4% |
0.4% |
(9.3%) |
9.7 pp |
Depreciation and amortization |
67 |
1,292 |
1,071 |
20.6% |
Aircraft and engine rent expense |
12 |
227 |
317 |
(28.4%) |
Net income (millions) |
27 |
519 |
461 |
12.5% |
Net income margin |
7.2% |
7.2% |
7.9% |
(0.7) pp |
Income per share: |
||||
Basic (pesos) |
0.03 |
0.51 |
0.46 |
12.5% |
Diluted (pesos) |
0.03 |
0.51 |
0.46 |
12.5% |
Income per ADS: |
||||
Basic (pesos) |
0.26 |
5.13 |
4.56 |
12.5% |
Diluted (pesos) |
0.26 |
5.13 |
4.56 |
12.5% |
Weighted average shares outstanding: |
||||
Basic |
- |
1,011,876,677 |
1,011,876,677 |
0.0% |
Diluted |
- |
1,011,876,677 |
1,011,876,677 |
0.0% |
Available seat miles (ASMs) (millions) (1) |
- |
5,704 |
5,055 |
12.8% |
Domestic |
- |
3,971 |
3,446 |
15.2% |
International |
- |
1,733 |
1,609 |
7.7% |
Revenue passenger miles (RPMs) (millions) (1) |
- |
4,744 |
4,155 |
14.2% |
Domestic |
- |
3,386 |
2,902 |
16.7% |
International |
- |
1,358 |
1,253 |
8.4% |
Load factor (2) |
- |
83.2% |
82.2% |
1.0 pp |
Domestic |
- |
85.3% |
84.2% |
1.1 pp |
International |
- |
78.6% |
77.9% |
0.7 pp |
Total operating revenue per ASM (TRASM) (cents) (1) (5) |
6.5 |
126.1 |
115.7 |
9.0% |
Total ancillary revenue per passenger (4) |
26.7 |
517 |
461 |
12.1% |
Total operating revenue per passenger (5) |
74.8 |
1,449 |
1,372 |
5.6% |
Operating expenses per ASM (CASM) (cents) (1) (5) |
6.5 |
125.7 |
126.5 |
(0.7%) |
Operating expenses per ASM (CASM) (US cents) (3) (5) |
- |
6.5 |
6.7 |
(3.8%) |
CASM ex fuel (cents) (1) (5) |
4.1 |
78.6 |
83.5 |
(5.8%) |
CASM ex fuel (US cents) (3) (5) |
- |
4.1 |
4.4 |
(8.8%) |
Booked passengers (thousands) (1) |
- |
4,962 |
4,263 |
16.4% |
Departures (1) |
- |
32,198 |
28,188 |
14.2% |
Block hours (1) |
- |
82,848 |
77,244 |
7.3% |
Fuel gallons consumed (millions) |
- |
58.3 |
54.3 |
7.5% |
Average economic fuel cost per gallon |
2.4 |
46.0 |
40.1 |
14.8% |
Aircraft at end of period |
- |
78 |
70 |
11.4% |
Average aircraft utilization (block hours) |
- |
12.7 |
13.2 |
(3.7%) |
Average exchange rate |
- |
19.22 |
18.76 |
2.4% |
End of period exchange rate |
- |
19.38 |
18.34 |
5.6% |
*Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only (1) Includes schedule + charter (3) Dollar amounts were converted at average exchange rate of each period |
||||
(2) Includes schedule (4) Includes "other passenger revenues" and "non-passenger revenues" (5) Not include natural hedge |
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Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries |
||||
Consolidated Statement of Operations |
||||
Unaudited |
Three months |
Three months Ended March 31, |
Three months (Adjusted) |
Variance |
(In millions of Mexican pesos) |
(US Dollars) * |
(%) |
||
Operating revenues: |
||||
Passenger revenues |
360 |
6,976 |
5,610 |
24.4% |
Fare revenues |
239 |
4,629 |
3,886 |
19.1% |
Other passenger revenues (1) |
121 |
2,347 |
1,724 |
36.1% |
Non-passenger revenues |
11 |
216 |
240 |
(10.0%) |
Other non-passenger revenues (1) |
8 |
154 |
192 |
(19.7%) |
Cargo |
3 |
62 |
49 |
28.0% |
Total operating revenues |
371 |
7,192 |
5,850 |
22.9% |
Other operating income |
- |
- |
(1) |
(100%) |
Total Fuel expense, net |
138 |
2,683 |
2,175 |
23.4% |
Depreciation and amortization |
67 |
1,292 |
1,071 |
20.6% |
Landing, take-off and navigation expenses |
64 |
1,232 |
1,124 |
9.6% |
Salaries and benefits |
44 |
852 |
746 |
14.1% |
Maintenance expenses |
18 |
353 |
346 |
2.0% |
Sales, marketing and distribution expenses |
14 |
271 |
357 |
(24.1%) |
Aircraft and engine rent expense |
12 |
227 |
317 |
(28.4%) |
Other operating expenses |
13 |
256 |
258 |
(0.7%) |
Operating expenses |
370 |
7,166 |
6,395 |
12.1% |
Operating income (loss) |
1 |
26 |
(545) |
NA |
Finance income |
2 |
38 |
34 |
12.2% |
Finance cost |
(26) |
(503) |
(395) |
27.2% |
Exchange gain, net |
60 |
1,154 |
1,564 |
(26.2%) |
Comprehensive financing result |
36 |
689 |
1,202 |
(42.7%) |
Income before income tax |
37 |
715 |
658 |
8.7% |
Income tax expense |
(10) |
(196) |
(196) |
(0.2%) |
Net income |
27 |
519 |
461 |
12.5% |
* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only. (1) The figures of 1Q 2018 includes a reclassification from "other non-passenger revenues" to "Other passenger revenues" of Ps.77 million, as result of the IFRS 15 adoption. |
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Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries |
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Reconciliation of total ancillary revenue per passenger |
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The following table shows quarterly additional detail about the components of total ancillary revenue: |
||||
Unaudited |
Three months (US Dollars)* |
Three months |
Three months (Adjusted) |
Variance (%) |
(In millions of Mexican pesos) |
||||
Other passenger revenues (1) |
121 |
2,347 |
1,724 |
36.1% |
Non-passenger revenues (1) |
11 |
216 |
240 |
(10.0%) |
Total ancillary revenues |
132 |
2,563 |
1,964 |
30.5% |
Booked passengers (thousands) |
- |
4,962 |
4,263 |
16.4% |
Total ancillary revenue per passenger |
26.7 |
517 |
461 |
12.1% |
* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only. |
||||
(1) The figures of 1Q 2018 includes a reclassification from "other non-passenger revenues" to "Other passenger revenues" of Ps.77 million, as result of the IFRS 15 adoption. |
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Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries |
|||
Consolidated Statement of Financial Position |
|||
(In millions of Mexican pesos) |
March 31, 2019 |
March 31, 2019 |
December 31, 2018 |
(US Dollars)* |
|||
Assets |
|||
Cash and cash equivalents |
365 |
7,071 |
5,863 |
Accounts receivable |
91 |
1,754 |
1,467 |
Inventories |
15 |
296 |
297 |
Prepaid expenses and other current assets |
30 |
588 |
443 |
Financial instruments |
3 |
67 |
62 |
Guarantee deposits |
32 |
615 |
791 |
Total current assets |
536 |
10,390 |
8,923 |
Rotable spare parts, furniture and equipment, net |
312 |
6,052 |
5,782 |
Right of use assets |
1,668 |
32,334 |
31,986 |
Intangible assets, net |
9 |
170 |
179 |
Deferred income taxes |
145 |
2,817 |
2,864 |
Guarantee deposits |
343 |
6,639 |
6,337 |
Other assets |
9 |
174 |
155 |
Other accounts receivable |
4 |
74 |
74 |
Total non-current assets |
2,490 |
48,260 |
47,378 |
Total assets |
3,026 |
58,650 |
56,301 |
Liabilities |
|||
Unearned transportation revenue |
214 |
4,142 |
2,439 |
Accounts payable |
47 |
911 |
1,103 |
Accrued liabilities |
135 |
2,619 |
2,318 |
Lease liabilities |
230 |
4,448 |
4,970 |
Other taxes and fees payable |
159 |
3,074 |
1,932 |
Income taxes payable |
- |
2 |
4 |
Financial instruments |
- |
3 |
123 |
Financial debt |
86 |
1,661 |
1,212 |
Other liabilities |
2 |
46 |
26 |
Total short-term liabilities |
872 |
16,905 |
14,127 |
Financial debt |
72 |
1,392 |
2,311 |
Accrued liabilities |
7 |
134 |
137 |
Lease liabilities |
1,803 |
34,936 |
34,586 |
Other liabilities |
18 |
357 |
328 |
Employee benefits |
1 |
19 |
18 |
Deferred income taxes |
66 |
1,282 |
1,096 |
Total long-term liabilities |
1,967 |
38,121 |
38,476 |
Total liabilities |
2,839 |
55,026 |
52,603 |
Equity |
|||
Capital stock |
153 |
2,974 |
2,974 |
Treasury shares |
(6) |
(122) |
(123) |
Contributions for future capital increases |
- |
- |
- |
Legal reserve |
15 |
291 |
291 |
Additional paid-in capital |
94 |
1,830 |
1,837 |
Retained earnings |
(36) |
(689) |
(1,208) |
Accumulated other comprehensive losses |
(34) |
(659) |
(73) |
Total equity |
187 |
3,624 |
3,698 |
Total liabilities and equity |
3,026 |
58,650 |
56,301 |
Total shares outstanding fully diluted |
1,011,876,677 |
1,011,876,677 |
|
* 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 March 31, |
Three months |
Three months (Adjusted) |
(In millions of Mexican pesos) |
(US Dollars)* |
||
Net cash flow provided by operating activities |
193 |
3,731 |
2,404 |
Net cash flow used in investing activities |
(20) |
(379) |
(313) |
Net cash flow used in financing activities |
(106) |
(2,063) |
(1,246) |
Increase in cash and cash equivalents |
67 |
1,290 |
844 |
Net foreign exchange differences |
(4) |
(82) |
(478) |
Cash and cash equivalents at beginning of period |
303 |
5,863 |
6,951 |
Cash and cash equivalents at end of period |
365 |
7,071 |
7,317 |
* Peso amounts were converted to U.S. dollars at end of period exchange rate for convenience purposes only |
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Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries |
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The following table shows adjusted balances after the adoption of IFRS 16 "Leases", on the quarterly statements of operations for each quarter of 2018. These recast amounts were derived from unaudited financial statements included in the quarterly reports on Form 6-K during the year ended December 31, 2018. |
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Unaudited (In millions of Mexican pesos) |
Three (Adjusted) |
Three months (Adjusted) |
Three months (Adjusted) |
Three months (Adjusted) |
Full Year 2018 |
Operating revenues: |
|||||
Passenger revenues |
5,610 |
5,990 |
7,138 |
7,643 |
26,381 |
Fare revenues |
3,886 |
4,137 |
5,096 |
5,370 |
18,488 |
Other passenger revenues (1) |
1,724 |
1,853 |
2,042 |
2,273 |
7,892 |
Non-passenger revenues |
240 |
240 |
179 |
265 |
924 |
Other non-passenger revenues (1) |
192 |
187 |
124 |
194 |
697 |
Cargo |
49 |
53 |
55 |
71 |
227 |
Total operating revenues |
5,850 |
6,230 |
7,317 |
7,908 |
27,305 |
Other operating income |
(1) |
(231) |
(243) |
(147) |
(622) |
Fuel |
2,175 |
2,445 |
2,631 |
2,885 |
10,135 |
Landing, take-off and navigation expenses |
1,124 |
1,149 |
1,149 |
1,157 |
4,579 |
Depreciation and amortization |
1,071 |
1,136 |
1,162 |
1,256 |
4,625 |
Salaries and benefits |
746 |
750 |
834 |
795 |
3,125 |
Sales, marketing and distribution expenses |
357 |
382 |
340 |
422 |
1,501 |
Maintenance expenses |
346 |
376 |
388 |
387 |
1,499 |
Aircraft and engine rent expense |
317 |
105 |
215 |
55 |
692 |
Other operating expenses |
258 |
283 |
239 |
277 |
1,058 |
Operating expenses |
6,395 |
6,395 |
6,715 |
7,087 |
26,592 |
Operating (loss) income |
(545) |
(165) |
602 |
821 |
713 |
Operating margin |
(9.3%) |
(2.6%) |
8.2% |
10.4% |
2.6% |
Finance income |
34 |
37 |
37 |
45 |
153 |
Finance cost |
(395) |
(439) |
(487) |
(478) |
(1,798) |
Exchange gain (loss), net |
1,564 |
(1,926) |
1,395 |
(1,137) |
(106) |
Comprehensive financing result |
1,202 |
(2,328) |
945 |
(1,570) |
(1,751) |
Income (loss) before income tax |
658 |
(2,493) |
1,547 |
(749) |
1,038 |
Income tax (expense) benefit |
(196) |
728 |
(442) |
187 |
277 |
Net income (loss) |
461 |
(1,765) |
1,105 |
(562) |
(761) |
Earnings (loss) per share: |
|||||
Basic (pesos) |
0.46 |
(1.74) |
1.09 |
(0.56) |
(0.75) |
Diluted (pesos) |
0.46 |
(1.74) |
1.09 |
(0.56) |
(0.75) |
Earnings (loss) per ADS: |
|||||
Basic (pesos) |
4.56 |
(17.44) |
10.92 |
(5.55) |
(7.52) |
Diluted (pesos) |
4.56 |
(17.44) |
10.92 |
(5.55) |
(7.52) |
(1) The annual figures of 2018 include a reclassification from "other non-passenger revenues" to "Other passenger revenues" of Ps.271 million, as result of the IFRS 15 adoption. |
|||||
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries |
||||||
The following table shows quarterly adjustments made due to the adoption of IFRS 16 "Leases", on the statements of operations for 2018. |
||||||
Unaudited |
Full Year 2018 |
Three months |
Three months |
Three months |
Three months |
Full Year 2018 |
(In millions of Mexican pesos) |
||||||
Operating revenues: |
||||||
Passenger revenues |
26,381 |
- |
- |
- |
- |
26,381 |
Fare revenues |
18,488 |
- |
- |
- |
- |
18,488 |
Other passenger revenues (1) |
7,892 |
- |
- |
- |
- |
7,892 |
Non-passenger revenues |
924 |
- |
- |
- |
- |
924 |
Other non-passenger revenues (1) |
227 |
- |
- |
- |
- |
227 |
Cargo |
697 |
- |
- |
- |
- |
697 |
Total operating revenues |
27,305 |
- |
- |
- |
- |
27,305 |
Other operating income |
(622) |
- |
- |
- |
- |
(622) |
Fuel |
10,135 |
- |
- |
- |
- |
10,135 |
Aircraft and engine rent expense |
6,315 |
(1,278) |
(1,400) |
(1,378) |
(1,567) |
692 |
Landing, take-off and navigation expenses |
4,583 |
(1) |
(1) |
(1) |
(1) |
4,579 |
Salaries and benefits |
3,125 |
- |
- |
- |
- |
3,125 |
Maintenance expenses |
1,518 |
(4) |
(5) |
(5) |
(5) |
1,499 |
Sales, marketing and distribution expenses |
1,501 |
- |
- |
- |
- |
1,501 |
Other operating expenses |
1,130 |
(17) |
(18) |
(18) |
(19) |
1,058 |
Depreciation and amortization |
501 |
939 |
1,012 |
1,047 |
1,126 |
4,625 |
Operating expenses |
28,186 |
(361) |
(412) |
(355) |
(466) |
26,592 |
Operating (loss) income |
(881) |
361 |
412 |
355 |
466 |
713 |
Operating margin |
(3.2%) |
2.6% |
||||
Finance income |
153 |
- |
- |
- |
- |
153 |
Finance cost |
(120) |
(361) |
(408) |
(423) |
(486) |
(1,798) |
Exchange (loss) gain, net |
(72) |
2,255 |
(2,581) |
1,814 |
(1,521) |
(106) |
Comprehensive financing result |
(40) |
1,894 |
(2,989) |
1,391 |
(2,007) |
(1,751) |
(Loss) income before income tax |
(921) |
2,255 |
(2,577) |
1,746 |
(1,541) |
(1,038) |
Income tax benefit (expense) |
238 |
(676) |
775 |
(523) |
463 |
277 |
Net (loss) income |
(683) |
1,579 |
(1,802) |
1,223 |
(1,078) |
(761) |
Basic (loss) earnings per share |
(0.67) |
1.56 |
(1.78) |
1.21 |
(1.07) |
(0.75) |
Diluted (loss) earnings per share |
(0.67) |
1.56 |
(1.78) |
1.21 |
(1.07) |
(0.75) |
(1) The annual figures of 2018 include a reclassification from "other non-passenger revenues" to "Other passenger revenues" of Ps.271 million, as result of the IFRS 15 adoption. |
||||||
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries |
|||||
The following table shows balances before the adoption of IFRS 16 "Leases", on the quarterly statements of operations for each quarter of 2018. |
|||||
Unaudited
(In millions of Mexican pesos) |
Three (Reported) |
Three (Reported) |
Three (Reported) |
Three (Reported) |
Full Year (Reported) |
Operating revenues: |
|||||
Passenger revenues |
5,610 |
5,990 |
7,138 |
7,643 |
26,381 |
Fare revenues |
3,886 |
4,137 |
5,096 |
5,370 |
18,489 |
Other passenger revenues (1) |
1,724 |
1,853 |
2,042 |
2,273 |
7,892 |
Non-passenger revenues |
240 |
240 |
179 |
265 |
924 |
Other non-passenger revenues (1) |
192 |
187 |
124 |
194 |
697 |
Cargo |
49 |
53 |
55 |
71 |
227 |
Total operating revenues |
5,850 |
6,230 |
7,316 |
7,909 |
27,305 |
Other operating income |
(1) |
(231) |
(243) |
(147) |
(622) |
Fuel |
2,175 |
2,445 |
2,631 |
2,885 |
10,135 |
Aircraft and engine rent expense |
1,596 |
1,504 |
1,593 |
1,622 |
6,315 |
Landing, take-off and navigation expenses |
1,125 |
1,150 |
1,150 |
1,158 |
4,583 |
Salaries and benefits |
746 |
750 |
834 |
795 |
3,125 |
Sales, marketing and distribution expenses |
357 |
382 |
340 |
422 |
1,501 |
Maintenance expenses |
351 |
381 |
393 |
392 |
1,518 |
Other operating expenses |
274 |
301 |
257 |
297 |
1,130 |
Depreciation and amortization |
132 |
124 |
115 |
130 |
501 |
Operating expenses |
6,757 |
6,805 |
7,070 |
7,554 |
28,186 |
Operating (loss) income |
(906) |
(575) |
246 |
355 |
(881) |
Operating margin |
(15.5%) |
(9.2%) |
3.4% |
4.5% |
(3.2%) |
Finance income |
34 |
37 |
37 |
45 |
153 |
Finance cost |
(34) |
(31) |
(64) |
8 |
(120) |
Exchange (loss) gain, net |
(691) |
653 |
(419) |
384 |
(73) |
Comprehensive financing result |
(691) |
660 |
(446) |
437 |
(40) |
(Loss) income before income tax |
(1,597) |
85 |
(200) |
792 |
(921) |
Income tax benefit (expense) |
479 |
(47) |
81 |
(276) |
238 |
Net (loss) income |
(1,118) |
38 |
(119) |
516 |
(683) |
(Loss) earnings per share: |
|||||
Basic (pesos) |
(1.10) |
0.04 |
(0.12) |
0.51 |
(0.67) |
Diluted (pesos) |
(1.10) |
0.04 |
(0.12) |
0.51 |
(0.67) |
(Loss) earnings per ADS: |
|||||
Basic (pesos) |
(11.05) |
0.38 |
(1.18) |
5.10 |
(6.75) |
Diluted (pesos) |
(11.05) |
0.38 |
(1.18) |
5.10 |
(6.75) |
(1) The annual figures of 2018 include a reclassification from "other non-passenger revenues" to "Other passenger revenues" of Ps.271 million, as result of the IFRS 15 adoption. |
|||||
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries |
|||
Consolidated Statement of Financial Position |
|||
The following table shows annual adjustments made due to the adoption of IFRS 16 "Leases", on the Consolidated Statement of Financial Position as of December 31, 2018. |
|||
(In millions of Mexican pesos) |
December 31, 2018 |
IFRS 16 |
December 31, 2018 |
Assets |
|||
Cash and cash equivalents |
5,863 |
- |
5,863 |
Accounts receivable |
1,467 |
- |
1,467 |
Inventories |
297 |
- |
297 |
Prepaid expenses and other current assets |
710 |
(267) |
443 |
Financial instruments |
62 |
- |
62 |
Guarantee deposits |
791 |
- |
791 |
Total current assets |
9,190 |
(267) |
8,923 |
Rotable spare parts, furniture and equipment, net |
5,782 |
- |
5,782 |
Right of use assets |
- |
31,986 |
31,986 |
Intangible assets, net |
179 |
- |
179 |
Deferred income taxes |
593 |
2,271 |
2,864 |
Guarantee deposits |
6,337 |
- |
6,337 |
Other assets |
155 |
- |
155 |
Other accounts receivable |
74 |
- |
74 |
Total non-current assets |
13,121 |
34,257 |
47,378 |
Total assets |
22,311 |
33,990 |
56,301 |
Liabilities |
|||
Unearned transportation revenue |
2,439 |
- |
2,439 |
Accounts payable |
1,103 |
- |
1,103 |
Accrued liabilities |
2,318 |
- |
2,318 |
Lease liabilities |
- |
4,970 |
4,970 |
Other taxes and fees payable |
1,932 |
- |
1,932 |
Income taxes payable |
4 |
- |
4 |
Financial instruments |
123 |
- |
123 |
Financial debt |
1,212 |
- |
1,212 |
Other liabilities |
118 |
(92) |
26 |
Total short-term liabilities |
9,249 |
4,878 |
14,127 |
Financial debt |
2,311 |
- |
2,311 |
Accrued liabilities |
137 |
- |
137 |
Lease liabilities |
- |
34,586 |
34,586 |
Other liabilities |
328 |
- |
328 |
Employee benefits |
18 |
- |
18 |
Deferred income taxes |
1,096 |
- |
1,096 |
Total long-term liabilities |
3,890 |
34,586 |
38,476 |
Total liabilities |
13,139 |
39,464 |
52,603 |
Equity |
|||
Capital stock |
2,974 |
- |
2,974 |
Treasury shares |
(123) |
- |
(123) |
Contributions for future capital increases |
- |
- |
- |
Legal reserve |
291 |
- |
291 |
Additional paid-in capital |
1,837 |
- |
1,837 |
Retained earnings |
4,266 |
(5,474) |
(1,208) |
Accumulated other comprehensive losses |
(73) |
- |
(73) |
Total equity |
9,172 |
(5,474) |
3,698 |
Total liabilities and equity |
22,311 |
33,990 |
56,301 |
Total shares outstanding fully diluted |
1,011,876,677 |
1,011,876,677 |
|
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries |
|||
Consolidated Statement of Cash Flows – Cash Flow Data Summary |
|||
The following table shows first quarter adjustments made due to the adoption of IFRS 16 "Leases", on the Consolidated Statement of Cash Flow for the three months ended March 31, 2018. |
|||
Unaudited |
Adjustments
|
Three months (Adjusted) |
|
(In millions of Mexican pesos) |
Three months (Reported) |
||
Net cash flow provided by operating activities |
1,093 |
1,311 |
2,404 |
Net cash flow used in investing activities |
(313) |
- |
(313) |
Net cash flow provided by (used in) financing activities |
65 |
(1,311) |
(1,246) |
Increase in cash and cash equivalents |
844 |
- |
844 |
Net foreign exchange differences |
(478) |
- |
(478) |
Cash and cash equivalents at beginning of period |
6,951 |
- |
6,951 |
Cash and cash equivalents at end of period |
7,317 |
- |
7,317 |
1 Source: Asociación Nacional de Tiendas de Autoservicio y Departamentales, A. C. (ANTAD)
2 Source: Banco de México (BANXICO)
3 Source: Instituto Nacional de Estadística y Geografía (INEGI)
SOURCE Volaris
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