Volaris reports third quarter 2017 results

Eleanor Steed
By Eleanor Steed October 26, 2017 16:33

Volaris reports third quarter 2017 results

Volaris total operating revenues for the third quarter of 2017 were Ps.6,582 million, a decrease of 2.2% year over year, notwithstanding the negative impact of the natural disasters and a soft fare environment during the quarter.

Non-ticket revenues now represent 27% of the total operating revenues, increasing 5 percentage points year over year, partially compensating the average fare decline. Non-ticket revenues were Ps.1,809 million for the third quarter, an increase of 18.6% year over year. Non-ticket revenues per passenger were Ps.434 for the third quarter, increasing 12.8% year over year.

Total operating revenues per available seat mile (TRASM), had a sequential improvement of 6.8% quarter over quarter, reaching Ps.137.7 cents for the third quarter, and a decrease of 11.2% year over year.

Operating expenses per available seat mile (CASM) decreased 5.0% year over year, to Ps.124.4 cents for the third quarter; with an average exchange rate of Ps.17.82, a year over year decrease of 4.8%, and despite an average economic fuel cost per gallon of Ps.31.8, representing an increase of 3.0% year over year.

Operating expenses excluding fuel, per available seat mile (CASM ex fuel) decreased 6.2% year over year, to Ps.88.9 cents for the third quarter.

Operating income was Ps.634 million, representing 9.6% of operating margin for the third quarter, a 9.0 percentage points higher than the previous quarter, and 5.9 percentage points lower year over year.

Net income was Ps.731 million (Ps.0.72 per share / US$0.40 per ADS) for the third quarter, with a net margin of 11.1%.

Volaris’ CEO Enrique Beltranena commented: “During the third quarter, demand and traffic patterns, despite a competitive fare environment, had been sequentially improving, but in September, natural disasters in Mexico and in the region temporarily interrupted such recovery. We continued to drive non-ticket revenue growth, managed capacity prudently and reinforced our cost control discipline, reversing the negative cost trend. These actions position Volaris with a defendable and resilient business model in a challenging environment.”

Eleanor Steed
By Eleanor Steed October 26, 2017 16:33