EX-99.87 2 ex99-87.htm EX-99.87

N

 

Volaris Reports Financial Results

for the Third Quarter 2021

 

Mexico City, Mexico, October 21st, 2021 – 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. 

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

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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.

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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

 

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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.

 

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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.

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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.

 

 

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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.

 

 

7 
 
 

 

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.

 

8 
 
 

 

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.

9 
 
 

  

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.

 

10 
 
 

 

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.

 

 

 

11 
 
 

 

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.

 

 

12 
 
 

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.

 

 

 

13 
 
 

 

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.

 

 

14