Q4 2024 Controladora Vuela Compania de Aviacion SAB de CV Earnings Call Transcript

Feb 24, 2025 / 04:00PM GMT

Transcript

Key Points

Positve

Controladora Vuela Compania de Aviacion SAB de CV (VLRS) achieved a full year EBA margin of 36% in 2024, demonstrating strong financial performance despite challenges.
The company maintained a stable revenue stream with $3.1 billion in total revenue, nearly matching 2023 levels, despite a 13% reduction in available seat miles (ASMs).
Ancillary revenues accounted for more than 50% of total revenues, reflecting successful diversification and integration of ancillary programs.
Controladora Vuela Compania de Aviacion SAB de CV (VLRS) achieved a net promoter score of 37.4%, significantly outperforming low-cost carriers in the United States.
The company was recognized in the Dow Jones best-in-class indexes for the third consecutive year, highlighting its commitment to sustainability and operational excellence.

Negative

The company faced significant challenges due to GTF engine inspections and aircraft groundings, affecting more than half of its fleet engines.
There was a 13% system-wide capacity decrease in 2024, with domestic capacity declining by 22%.
The company anticipates ongoing revisions to affect a significant portion of its fleet in 2025, 2026, and 2027, potentially impacting operations.
Controladora Vuela Compania de Aviacion SAB de CV (VLRS) experienced a 20% depreciation of the Mexican peso against the US dollar, impacting topline results.
The company expects a one-time cost of approximately $100 million in 2025 due to redelivery accruals and related maintenance.

Operator

Good morning everyone.

Thank you for standing by. Welcome to Ver's 4th quarter and full year 2024 financial results conference call. All lines are in a listen-only mode. Following the company's presentation, we will open the call for your questions. Please note that we are recording this event. This event is also being broadcast live via a webcast and can be accessed through the Volaris website. At this point, I would like to turn the call over to Ricardo Martinez, investor relations director.

Please go ahead, Ricardo.

Ricardo Martinez

Controladora Vuela Compania de Aviacion SAB de CV - IR Contact Officer

Good morning and thank you for joining the call. With us is our President and CEO Enrique Vl Tranena. Our airline executive Vice President Holger Blastein and our Chief Financial Officer Jaime Pos. They will be discussing the company's results. Afterward, we will move on to your questions. Please note that this call is for investors and analysts only.

Before we begin, please remember that this call may include forward-looking

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