The following is a summary of the Controladora Vuela Compañía De Aviación, S.A.B. De C.V. (VLRS) Q1 2024 Earnings Call Transcript:
Financial Performance:
Volaris reported a Q1 2024 net income of $33 million, the first Q1 net profit since 2019.
Total operating revenue grew by 5% due to a 21% increase in unit revenue.
EBIT and EBITDAR margins expanded by 18% and 14% respectively compared to the prior year.
Despite capacity reduction, total operating revenues were $768 million, a rise of 5% year-over-year.
The company concluded Q1 2024 with a liquidity position of $768 million expecting to deleverage by year-end.
Business Progress:
Despite engine and aircraft issues, Volaris maintains a focus on enhancing customer service and controlling costs.
The company received pre-arranged compensation from Pratt & Whitney to mitigate the negative impacts of engine removals due to preventive inspections.
Two A321neos were received from Airbus ahead of schedule, helping capitalize on holy week demand.
Significant capacity reallocations towards U.S.-Mexico routes resulted in an increased Total Revenue per Available Seat Mile (TRASM).
An expansion plan involves strengthening the partnership with Frontier Airlines while prioritizing profitability in capacity allocation.
Customer service improvements yielded a net promoter score of 32% in Q1.
Revenue loss from grounded aircraft was fully compensated by increasing TRASM and operating income remained robust.
The company executed multiple A321 neo sale-and-leaseback transactions and is expecting 10 additional aircraft from Airbus in 2024.
More details: Controladora Vuela Compania de Aviacion IR
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