MEXICO CITY, Feb. 25, 2020
/PRNewswire/ -- Volaris* (NYSE: VLRS and BMV: VOLAR), the
ultra-low-cost airline serving Mexico, the United
States and Central America, today announces its
financial results for the fourth quarter 2019.
The following financial information, unless otherwise
indicated, is presented in accordance with the International
Financial Reporting Standards (IFRS).
Fourth Quarter 2019 Highlights
- Total operating revenues were Ps.9,729 million for the fourth
quarter, an increase of 23.0% year over year.
- Total ancillary revenues were Ps.3,195 million for the fourth
quarter, an increase of 25.8% year over year. Total ancillary
revenues per passenger for the fourth quarter reached Ps.557, an
increase of 8.8% year over year. Total ancillary revenues
represented 32.8% of total operating revenues for the fourth
quarter 2019, increasing 0.7 percentage points with respect to the
same period of last year.
- Total operating revenues per available seat mile (TRASM) were
Ps.155.0 cents for the fourth
quarter, an increase of 7.2% year over year.
- Operating expenses per available seat mile (CASM) were
Ps.123.5 cents for the fourth
quarter, a decrease of 5.3% year over year; with an average
economic fuel cost per gallon of Ps.45.8 for the fourth quarter, a
decrease of 6.8% year over year.
- Operating expenses per available seat mile excluding fuel,
(CASM ex fuel) reached Ps.76.0 cents
for the fourth quarter, a decrease of 2.1% year over
year.
- Operating income was Ps.1,967 million for the fourth quarter, a
significant increase compared with the operating income of Ps.776
million for the same period of last year. Operating margin for the
fourth quarter was 20.2%, an improvement in margin of 10.4
percentage points year over year.
- Net income was Ps.1,287 million (Ps.1.27 per share /
U.S.$0.68 per ADS), for a net margin
of 13.2% for the fourth quarter.
- At the close of the fourth quarter, the Mexican peso
appreciated 4.0% against the U.S. dollar with respect to the
exchange rate at the close of the previous quarter (Ps.19.64 per
U.S. dollar). The Company booked a foreign exchange gain of Ps.456
million derived from our U.S. dollar net monetary liability
position, mainly as result of the adoption of IFRS16.
- During the fourth quarter of 2019, the net cash flow generated
by operating activities were Ps.2,228 million. The net cash flow
used in investing activities reached Ps.823 million. The net cash
flow used in financing activities were Ps.960 million, which
included Ps.1,713 million of aircraft rental payments. The negative
net foreign exchange difference was Ps.275 million, thus having a
net increase of cash and cash equivalents in the fourth quarter of
Ps.170 million. As of December 31,
2019, cash and cash equivalents were Ps.7,980 million.
Stable Macroeconomics and Domestic Consumer Demand, with Peso
Appreciation and Fuel Price Reduction
- Stable macroeconomics and domestic consumer
demand: The macroeconomic indicators in Mexico were stable, increasing during the
months of October and November in same store
sales[1] 3.9% year over year. During the fourth
quarter remittances[2] increased 1.5% year over
year, and the Mexican Consumer Confidence Balance Indicator
(BCC)[3] increased 2.0% year over year.
- Air traffic volume increase: The Mexican Federal
Civil Aviation Agency reported an overall passenger volume growth
for Mexican carriers during the fourth quarter of 2019 of 7.6% year
over year. The domestic overall passenger volume increased 8.1%,
while the international overall passenger volume increased
4.2%.
- Peso appreciation: The Mexican peso appreciated
2.8% against the U.S. dollar year over year, from an average
exchange rate of Ps.19.83 per U.S. dollar in the fourth quarter of
2018 to Ps.19.28 per U.S. dollar during the fourth quarter of 2019.
At the end of the fourth quarter of 2019, the Mexican peso
appreciated 4.3% with respect to the exchange rate at the end of
the same period of the last year. The Company booked a foreign
exchange gain of Ps.456 million derived from our U.S. dollar net
monetary liability position, mainly as result of the adoption of
IFRS16.
- Fuel price reduction: The average economic fuel
cost per gallon decreased 6.8% in the fourth quarter of 2019, year
over year, reaching Ps.45.8 per gallon (U.S.$2.4).
Passenger Traffic Stimulation, Further Ancillary Revenue
Expansion, and Positive TRASM Growth
- Passenger traffic stimulation: Volaris booked 5.7
million passengers in the fourth quarter of 2019, an increase of
15.6% year over year. Volaris traffic (measured in terms of revenue
passenger miles, or RPMs) increased 16.7% year over year. System
load factor during the fourth quarter increased 1.1 percentage
points year over year, reaching 87.6%.
- Total ancillary revenue growth: For the fourth quarter
of 2019, total ancillary revenue increased 25.8% year over year.
Total ancillary revenue per passenger in the fourth quarter of 2019
increased 8.8% year over year. The total ancillary revenue
generation continues to grow with new and mature products,
appealing to customers' needs, representing 32.8% of total
operating revenue of the fourth quarter, an increase of 0.7
percentage points year over year.
- Positive TRASM growth: For the fourth quarter of
2019, TRASM increased 7.2% year over year. During the fourth
quarter of 2019, the total capacity, in terms of ASMs, increased
15.1% year over year.
- New routes: During the fourth quarter of 2019,
Volaris began operations in four new domestic routes and one new
international route. In the domestic market:1) Monterrey, Nuevo Leon to Oaxaca, Oaxaca; 2) Monterrey, Nuevo Leon to Los Cabos, Baja California; 3) Tijuana, Baja California to Tapachula, Chiapas; and 4) Mazatlan, Sinaloa to Monterrey, Nuevo Leon. On the international
market: Leon, Guanajuato to
Fresno,
California. Additionally, Volaris launched for sale five
international routes: 1) Leon,
Guanajuato to Dallas Texas;
2) Leon, Guanajuato to
Las Vegas, Nevada; 3) Leon Guanajuato to Chicago, Illinois; 4) Zacatecas, Zacatecas to Dallas,
Texas; and 5) Cancun, Quintana
Roo to Los Angeles
California.
Total Unit Cost Reduction, with Peso Appreciation and Fuel
Price Reduction
- CASM and CASM ex fuel in the fourth quarter of 2019 reached
Ps.123.5 (U.S.$6.40 cents) and
Ps.76.0 cents (U.S.$3.94), respectively. This represented a decrease
of 5.3% and 2.1%, respectively, year over year; mainly driven by
cost control discipline, the average exchange rate appreciation of
the Mexican peso against the U.S. dollar of 2.8%, and the average
economic fuel cost per gallon decreased 6.8%.
Young and Fuel-Efficient Consumption Fleet
- During the fourth quarter of 2019, the Company incorporated two
aircraft (one A320 neo and one A321 neo) to its fleet. As of
December 31, 2019, Volaris' fleet was
composed of 82 aircraft (8 A319s, 58 A320s and 16 A321s), with an
average age of 5.0 years. At the end of the fourth quarter of 2019,
Volaris' fleet had an average of 186 seats per aircraft, 77% of our
aircraft were sharklet-equipped, and 28% were NEO.
Solid Balance Sheet and Good Liquidity
- During the fourth quarter of 2019, the net cash flow generated
by operating activities were Ps.2,228 million. The net cash flow
used in investing activities reached Ps.823 million. The net cash
flow used in financing activities were Ps.960 million, which
included Ps.1,713 million of aircraft rental payments. The negative
net foreign exchange difference was Ps.275 million, thus having a
net increase of cash and cash equivalents in the fourth quarter of
Ps.170 million. As of December 31,
2019, cash and cash equivalents were Ps.7,980 million,
representing 23.0% of last twelve months of the operating revenue.
Volaris registered a negative net debt (or a positive net cash
position) of Ps.3,004 million (excluding lease liability recognized
under the IFRS16 adoption) and total equity of Ps.5,450
million.
Transition to IFRS 16
- The Company adopted IFRS 16 as of January 1, 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 1, 2017 as an increase in
assets and liabilities and an adjustment in the retained
earnings.
The unaudited figures of this adoption are presented as
follows:
Consolidated
Statements of Financial Position
|
|
|
|
As
of
January
1st,
2017
|
|
As of
December 31,
2017
|
|
As of
December 31,
2018
|
Assets
|
|
|
|
|
|
|
Property,
plant and equipment
(Right-of-use-assets)
|
Ps.
|
23,713,036
|
Ps.
|
25,084,329
|
Ps.
|
31,994,579
|
Deferred
income tax
|
|
2,999,021
|
|
2,603,243
|
|
2,718,850
|
Prepaid
expenses
|
|
(
266,959)
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Lease
liabilities
|
Ps.
|
32,711,793
|
Ps.
|
32,523,704
|
Ps.
|
39,565,146
|
Other
liabilities
|
|
929,431
|
|
1,159,594
|
|
1,400,371
|
Deferred
income tax
|
|
20,564
|
|
23,548
|
|
27,568
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Retained
Earnings
|
Ps.
|
7,216,690
|
Ps.
|
6,019,274
|
Ps.
|
6,279,656
|
Consolidated
Statements of Operations
|
|
|
|
For the year
ended
December 31,
2017
|
|
For the year
ended
December 31,
2018
|
|
|
|
|
|
Depreciation
expense
|
Ps.
|
3,526,128
|
Ps.
|
4,128,328
|
Operating
lease expense
|
|
(4,807,379)
|
|
(5,543,655)
|
Operating
income
|
|
(1,281,251)
|
|
(1,415,327)
|
Financial
costs
|
|
1,428,924
|
|
1,755,978
|
Foreign
exchange (gain) loss
|
|
(1,476,890)
|
|
31,315
|
Income tax
expense (benefit)
|
|
392,795
|
|
(111,587)
|
Net
(income) loss
|
Ps.
|
(936,422)
|
Ps.
|
260,379
|
- This quarterly earnings release includes supplemental
information for comparable purposes, with the recast and unaudited
adjusted 2018 figures, including the IFRS 16 adoption effects
describe above. These figures were derived from unaudited financial
statements included in the quarterly reports on Form 6-K reported
during the year ended as of December
31, 2018.
- Starting on March 25th
and during 2019, the Company established hedges on its USD
denominated revenues, through a non-derivative financial
instrument, using the lease liabilities denominated in USD as a
hedge instrument. These hedging's relationships were 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. During 2019, the impacts of these hedges for
the fourth quarter and year to date were Ps.33 million and Ps.73
million, respectively, which has been presented as part of the
total operating revenue.
- Additionally, also starting on March
25th and during 2019, the Company established
hedges on a portion of its forecasted fuel expense, through a
non-derivative financial instrument, using as a hedge instrument a
portion of its USD denominated monetary assets. These hedging's
relationships were 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. During 2019, the impacts of these
hedges for the fourth quarter and year to date were Ps.17 million
and Ps.57 million, respectively, which has been presented as part
of the total fuel expense.
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, President & CEO
|
|
Mr. Holger
Blankenstein, Airline EVP
|
|
Ms. Sonia Jerez
Burdeus, VP & CFO
|
Date:
|
Wednesday, February
26, 2020
|
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
|
Webcast will be
available at:
|
https://services.choruscall.com/links/vlrs2002248AUE8lsj.html
|
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 the beginning of operations in March 2006, Volaris has increased its routes from
five to more than 187 and its fleet from four to 82 aircraft.
Volaris offers more than 400 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 and leisure travelers in Mexico, the United
States and Central America.
Volaris has received the ESR Award for Social Corporate
Responsibility for ten 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.
Investor Relations Contact:
Maria Elena Rodríguez
& Andrea González / Investor Relations / ir@volaris.com /
+52 55 5261 6444
Media Contact:
Gabriela Fernández / volaris@gcya.net
/ +52 55 5246 0100
Controladora Vuela
Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
|
Financial and
Operating Indicators
|
|
|
|
|
|
Unaudited
(In Mexican pesos,
except otherwise indicated)
|
Three months
ended December
31, 2019
(US
Dollars)*
|
Three months
ended
December 31,
2019
|
Three months
ended December 31,
2018
|
Variance
(%)
|
Total operating
revenues (millions)
|
516
|
9,729
|
7,909
|
23.0%
|
Total operating
expenses (millions)
|
412
|
7,762
|
7,133
|
8.8%
|
EBIT
(millions)
|
104
|
1,967
|
776
|
>100%
|
EBIT
margin
|
20.2%
|
20.2%
|
9.8%
|
10.4 pp
|
Depreciation and
amortization
|
76
|
1,439
|
1,257
|
14.5%
|
Aircraft and engine
rent expense
|
8
|
142
|
100
|
42.4%
|
Net income (loss)
(millions)
|
68
|
1,287
|
(610)
|
NA
|
Net income (loss)
margin
|
13.2%
|
13.2%
|
(7.7%)
|
20.9 pp
|
Income (loss) per
share:
|
|
|
|
|
Basic
(pesos)
|
0.07
|
1.27
|
(0.60)
|
NA
|
Diluted
(pesos)
|
0.07
|
1.27
|
(0.60)
|
NA
|
Income (loss) per
ADS:
|
|
|
|
|
Basic
(pesos)
|
0.68
|
12.72
|
(6.02)
|
NA
|
Diluted
(pesos)
|
0.68
|
12.72
|
(6.02)
|
NA
|
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)
|
-
|
6,300
|
5,472
|
15.1%
|
Domestic
|
-
|
4,343
|
3,832
|
13.3%
|
International
|
-
|
1,957
|
1,640
|
19.4%
|
Revenue passenger
miles (RPMs) (millions) (1)
|
-
|
5,521
|
4,731
|
16.7%
|
Domestic
|
-
|
3,888
|
3,429
|
13.4%
|
International
|
-
|
1,633
|
1,303
|
25.4%
|
Load factor
(2)
|
-
|
87.6%
|
86.5%
|
1.1 pp
|
Domestic
|
-
|
89.5%
|
89.5%
|
0.0 pp
|
International
|
-
|
83.5%
|
79.4%
|
4.1 pp
|
Total operating
revenue per ASM (TRASM) (cents) (1)
(5)
|
8.2
|
155.0
|
144.5
|
7.2%
|
Total ancillary
revenue per passenger (4) (5)
|
29.5
|
557
|
512
|
8.8%
|
Total operating
revenue per passenger (5)
|
90.3
|
1,701
|
1,594
|
6.8%
|
Operating expenses
per ASM (CASM) (cents) (1) (5)
|
6.55
|
123.5
|
130.3
|
(5.3%)
|
Operating expenses
per ASM (CASM) (US cents) (3) (5)
|
-
|
6.40
|
6.57
|
(2.6%)
|
CASM ex fuel
(cents) (1) (5)
|
4.03
|
76.0
|
77.6
|
(2.1%)
|
CASM ex fuel (US
cents) (3) (5)
|
-
|
3.94
|
3.92
|
0.7%
|
Booked passengers
(thousands) (1)
|
-
|
5,738
|
4,963
|
15.6%
|
Departures (1)
|
-
|
35,261
|
30,844
|
14.3%
|
Block
hours (1)
|
-
|
89,714
|
84,569
|
6.1%
|
Fuel gallons consumed
(millions)
|
-
|
65.2
|
58.7
|
11.1%
|
Average economic fuel
cost per gallon (5)
|
2.4
|
45.8
|
49.1
|
(6.8%)
|
Aircraft at end of
period
|
-
|
82
|
77
|
6.5%
|
Average aircraft
utilization (block hours)
|
-
|
12.8
|
13.1
|
(2.6%)
|
Average exchange
rate
|
-
|
19.28
|
19.83
|
(2.8%)
|
End of period
exchange rate
|
-
|
18.85
|
19.68
|
(4.3%)
|
*Peso amounts were
converted to U.S. dollars at end of period exchange rate for
convenience purposes only
|
(1) Includes schedule and
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) Excludes non-derivatives
financial instruments
|
|
Controladora Vuela
Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
|
Financial and
Operating Indicators
|
|
|
|
|
|
Unaudited
(In Mexican pesos,
except otherwise indicated)
|
Twelve months
ended December
31, 2019
(US
Dollars)*
|
Twelve months
ended
December 31,
2019
|
Twelve months
ended
December 31,
2018
|
Variance (%)
|
Total operating
revenues (millions)
|
1,844
|
34,753
|
27,305
|
27.3%
|
Total operating
expenses (millions)
|
1,613
|
30,397
|
26,770
|
13.5%
|
EBIT
(millions)
|
231
|
4,355
|
535
|
>100%
|
EBIT
margin
|
12.5%
|
12.5%
|
2.0%
|
10.5 pp
|
Depreciation and
amortization
|
288
|
5,429
|
4,629
|
17.3%
|
Aircraft and engine
rent expense
|
48
|
911
|
871
|
4.5%
|
Net income (loss)
(millions)
|
140
|
2,639
|
(943)
|
NA
|
Net income (loss)
margin
|
7.6%
|
7.6%
|
(3.5%)
|
11.1 pp
|
Income (loss) per
share:
|
|
|
|
|
Basic
(pesos)
|
0.14
|
2.61
|
(0.93)
|
NA
|
Diluted
(pesos)
|
0.14
|
2.61
|
(0.93)
|
NA
|
Income (loss) per
ADS:
|
|
|
|
|
Basic
(pesos)
|
1.38
|
26.08
|
(9.32)
|
NA
|
Diluted
(pesos)
|
1.38
|
26.08
|
(9.32)
|
NA
|
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)
|
-
|
24,499
|
21,010
|
16.6%
|
Domestic
|
-
|
16,891
|
14,519
|
16.3%
|
International
|
-
|
7,607
|
6,490
|
17.2%
|
Revenue passenger
miles (RPMs) (millions) (1)
|
-
|
21,032
|
17,748
|
18.5%
|
Domestic
|
-
|
14,871
|
12,655
|
17.5%
|
International
|
-
|
6,162
|
5,093
|
21.0%
|
Load factor
(2)
|
-
|
85.9%
|
84.5%
|
1.4 pp
|
Domestic
|
-
|
88.0%
|
87.2%
|
0.8 pp
|
International
|
-
|
81.0%
|
78.5%
|
2.5 pp
|
Total operating
revenue per ASM (TRASM) (cents) (1) (5)
|
7.5
|
142.2
|
130.0
|
9.4%
|
Total ancillary
revenue per passenger (4) (5)
|
28.2
|
532
|
479
|
11.0%
|
Total operating
revenue per passenger (5)
|
84.1
|
1,585
|
1,484
|
6.8%
|
Operating expenses
per ASM (CASM) (cents) (1) (5)
|
6.60
|
124.3
|
127.4
|
(2.4%)
|
Operating expenses
per ASM (CASM) (US cents) (3) (5)
|
-
|
6.45
|
6.62
|
(2.6%)
|
CASM ex fuel
(cents) (1) (5)
|
4.07
|
76.6
|
79.2
|
(3.2%)
|
CASM ex fuel (US
cents) (3) (5)
|
-
|
3.98
|
4.12
|
(3.4%)
|
Booked passengers
(thousands) (1)
|
-
|
21,975
|
18,396
|
19.5%
|
Departures
(1)
|
-
|
138,084
|
117,920
|
17.1%
|
Block hours
(1)
|
-
|
350,572
|
322,054
|
8.9%
|
Fuel gallons consumed
(millions)
|
-
|
251.8
|
227.4
|
10.7%
|
Average economic fuel
cost per gallon (5)
|
2.5
|
46.4
|
44.6
|
4.1%
|
Aircraft at end of
period
|
-
|
82
|
77
|
6.5%
|
Average aircraft
utilization (block hours)
|
-
|
12.9
|
13.2
|
(2.0%)
|
Average exchange
rate
|
-
|
19.26
|
19.24
|
0.1%
|
End of period
exchange rate
|
-
|
18.85
|
19.68
|
(4.3%)
|
*Peso amounts were
converted to U.S. dollars at end of period exchange rate for
convenience purposes only
|
(1) Includes schedule and
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) Excludes non-derivatives
financial instruments
|
|
Controladora Vuela
Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
|
Consolidated
Statement of Operations
|
|
|
|
|
|
Unaudited (In millions of Mexican pesos)
|
Three months
ended December
31, 2019 (US Dollars)
*
|
Three
months
ended
December
31,
2019
|
Three
months
ended
December 31,
2018
|
Variance (%)
|
Operating
revenues:
|
|
|
|
|
Passenger
revenues
|
500
|
9,414
|
7,643
|
23.2%
|
Fare
revenues
|
349
|
6,568
|
5,370
|
22.3%
|
Other passenger
revenues (1)
|
151
|
2,846
|
2,273
|
25.2%
|
|
|
|
|
|
Non-passenger
revenues
|
19
|
349
|
265
|
31.5%
|
Other
non-passenger revenues (1)
|
15
|
285
|
194
|
46.7%
|
Cargo
|
3
|
64
|
71
|
(10.2%)
|
|
|
|
|
|
Non-derivatives
financial instruments
|
(2)
|
(33)
|
-
|
NA
|
|
|
|
|
|
Total operating
revenues
|
516
|
9,729
|
7,909
|
23.0%
|
|
|
|
|
|
Other operating
income
|
(3)
|
(63)
|
(147)
|
(57.1%)
|
Total fuel expense,
net (2)
|
158
|
2,972
|
2,885
|
3.0%
|
Depreciation and
amortization
|
76
|
1,439
|
1,257
|
14.5%
|
Landing, take-off and
navigation expenses
|
73
|
1,384
|
1,156
|
19.8%
|
Salaries and
benefits
|
51
|
953
|
795
|
19.8%
|
Maintenance
expenses
|
19
|
360
|
387
|
(6.9%)
|
Sales, marketing and
distribution expenses
|
22
|
409
|
422
|
(3.1%)
|
Aircraft and engine
rent expense
|
8
|
142
|
100
|
42.4%
|
Other operating
expenses
|
9
|
165
|
278
|
(40.7%)
|
Operating
expenses
|
412
|
7,762
|
7,133
|
8.8%
|
|
|
|
|
|
Operating
income
|
104
|
1,967
|
776
|
>100%
|
|
|
|
|
|
Finance
income
|
3
|
55
|
44
|
24.1%
|
Finance
cost
|
(36)
|
(675)
|
(496)
|
36.2%
|
Exchange gain (loss),
net
|
24
|
456
|
(1,137)
|
NA
|
Comprehensive
financing result
|
(9)
|
(164)
|
(1,588)
|
(89.6%)
|
|
|
|
|
|
Income (loss)
before income tax
|
96
|
1,803
|
(812)
|
NA
|
Income tax (expense)
benefit
|
(27)
|
(516)
|
203
|
NA
|
Net income
(loss)
|
68
|
1,287
|
(610)
|
NA
|
|
|
|
|
|
* Peso amounts were
converted to U.S. dollars at end of period exchange rate for
convenience purposes only
(1) 4Q
2018 figures include a reclassification from "Other non-passenger
revenues" to "Other passenger revenues" of Ps.54 million, as result
of the
IFRS 15 adoption
(2) 4Q 2019 figures include a benefit
from non-derivatives financial instruments by an amount of Ps.17
million
|
Controladora Vuela
Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
|
Consolidated
Statement of Operations
|
|
|
|
|
|
Unaudited
(In millions of
Mexican pesos)
|
Twelve months
ended December
31, 2019
(US Dollars)
*
|
Twelve
months
ended December
31,
2019
|
Twelve months
ended December
31, 2018
|
Variance
(%)
|
Operating
revenues:
|
|
|
|
|
Passenger
revenues
|
1,788
|
33,699
|
26,380
|
27.7%
|
Fare
revenues
|
1,227
|
23,130
|
18,488
|
25.1%
|
Other passenger
revenues (1)
|
561
|
10,569
|
7,892
|
33.9%
|
|
|
|
|
|
Non-passenger
revenues
|
60
|
1,126
|
925
|
21.8%
|
Other
non-passenger revenues (1)
|
48
|
898
|
697
|
28.7%
|
Cargo
|
12
|
229
|
227
|
0.6%
|
|
|
|
|
|
Non-derivatives
financial instruments
|
(4)
|
(73)
|
-
|
NA
|
|
|
|
|
|
Total operating
revenues
|
1,844
|
34,753
|
27,305
|
27.3%
|
|
|
|
|
|
Other operating
income
|
(17)
|
(327)
|
(622)
|
(47.4%)
|
Total fuel expense,
net (2)
|
617
|
11,626
|
10,135
|
14.7%
|
Depreciation and
amortization
|
288
|
5,429
|
4,629
|
17.3%
|
Landing, take-off and
navigation expenses
|
271
|
5,108
|
4,573
|
11.7%
|
Salaries and
benefits
|
191
|
3,601
|
3,125
|
15.2%
|
Maintenance
expenses
|
79
|
1,488
|
1,498
|
(0.6%)
|
Sales, marketing and
distribution expenses
|
77
|
1,448
|
1,501
|
(3.6%)
|
Aircraft and engine
rent expense
|
48
|
911
|
871
|
4.5%
|
Other operating
expenses
|
59
|
1,113
|
1,059
|
5.1%
|
Operating
expenses
|
1,613
|
30,397
|
26,770
|
13.5%
|
|
|
|
|
|
Operating
income
|
231
|
4,355
|
535
|
>100%
|
|
|
|
|
|
Finance
income
|
11
|
208
|
153
|
36.2%
|
Finance
cost
|
(120)
|
(2,270)
|
(1,876)
|
21.0%
|
Exchange gain (loss),
net
|
76
|
1,441
|
(104)
|
NA
|
Comprehensive
financing result
|
(33)
|
(622)
|
(1,827)
|
(66.0%)
|
|
|
|
|
|
Income (loss)
before income tax
|
198
|
3,734
|
(1,293)
|
NA
|
Income tax (expense)
benefit
|
(58)
|
(1,095)
|
350
|
NA
|
Net income
(loss)
|
140
|
2,639
|
(943)
|
NA
|
|
|
|
|
|
* Peso amounts were
converted to U.S. dollars at end of period exchange rate for
convenience purposes only
(1)
December YTD 2018 figures include a reclassification from
"Other non-passenger revenues" to "Other passenger revenues" of
Ps.271 million,
as result of the IFRS 15 adoption
(2) December YTD 2019 figures include
a benefit from non-derivatives financial instruments by an amount
of Ps.57 million
|
Controladora Vuela
Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
|
Reconciliation of
total ancillary revenue per passenger
|
|
The following table
shows quarterly additional detail about the components of total
ancillary revenue:
|
|
|
|
|
|
Unaudited
(In millions of
Mexican pesos)
|
Three months
ended
December 31,
2019
(US
Dollars)*
|
Three months
ended December 31,
2019
|
Three months
ended
December 31,
2018
|
Variance
(%)
|
|
|
|
|
|
Other passenger
revenues (1)
|
151
|
2,846
|
2,273
|
25.2%
|
Non-passenger
revenues (1)
|
19
|
349
|
265
|
31.5%
|
Total ancillary
revenues
|
170
|
3,195
|
2,539
|
25.8%
|
|
|
|
|
|
Booked passengers
(thousands)
|
-
|
5,738
|
4,963
|
15.6%
|
|
|
|
|
|
Total ancillary
revenue per passenger
|
29.5
|
557
|
512
|
8.8%
|
|
|
|
|
|
|
|
|
|
|
* Peso amounts were
converted to U.S. dollars at end of period exchange rate for
convenience purposes only
|
(1) 4Q
2018 figures include a reclassification from "Other non-passenger
revenues" to "Other passenger revenues" of Ps.54 million, as result
of the
IFRS 15 adoption
|
|
|
|
|
|
|
The following table
shows the December YTD additional detail about the components of
total ancillary revenue:
|
|
|
|
|
|
Unaudited
(In millions of
Mexican pesos)
|
Twelve months
ended
December 31,
2019
(US
Dollars)*
|
Twelve months
ended
December 31,
2019
|
Twelve months
ended
December 31,
2018
|
Variance
(%)
|
|
|
|
|
|
Other passenger
revenues (1)
|
561
|
10,569
|
7,892
|
33.9%
|
Non-passenger
revenues (1)
|
60
|
1,126
|
925
|
21.8%
|
Total ancillary
revenues
|
621
|
11,696
|
8,817
|
32.6%
|
|
|
|
|
|
Booked passengers
(thousands)
|
-
|
21,975
|
18,396
|
19.5%
|
|
|
|
|
|
Total ancillary
revenue per passenger
|
28.2
|
532
|
479
|
11.0%
|
|
|
|
|
|
|
|
|
|
|
* Peso amounts were
converted to U.S. dollars at end of period exchange rate for
convenience purposes only
|
(1)
December YTD 2018 figures 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
|
|
|
|
|
(In millions of
Mexican pesos)
|
December 31,
2019
Unaudited
(US
Dollars)*
|
December 31,
2019
Unaudited
|
December 31,
2018
Unaudited
|
Assets
|
|
|
|
Cash and cash
equivalents
|
423
|
7,980
|
5,863
|
Accounts
receivable
|
123
|
2,320
|
1,467
|
Inventories
|
16
|
302
|
297
|
Prepaid expenses and
other current assets
|
41
|
781
|
443
|
Financial
instruments
|
7
|
134
|
62
|
Guarantee
deposits
|
32
|
600
|
791
|
Total current
assets
|
643
|
12,117
|
8,923
|
Rotable spare parts,
furniture and equipment, net
|
392
|
7,385
|
5,782
|
Right of use
assets
|
1,814
|
34,190
|
31,995
|
Intangible assets,
net
|
9
|
167
|
179
|
Financial
instruments
|
-
|
3
|
-
|
Deferred income
taxes
|
78
|
1,462
|
3,312
|
Guarantee
deposits
|
406
|
7,644
|
6,337
|
Other
assets
|
9
|
166
|
155
|
Other accounts
receivable
|
7
|
141
|
74
|
Total non-current
assets
|
2,715
|
51,160
|
47,834
|
Total
assets
|
3,358
|
63,277
|
56,757
|
Liabilities
|
|
|
|
Unearned
transportation revenue
|
195
|
3,680
|
2,439
|
Accounts
payable
|
88
|
1,656
|
1,103
|
Accrued
liabilities
|
136
|
2,557
|
2,318
|
Lease
liabilities
|
250
|
4,721
|
4,976
|
Other taxes and fees
payable
|
112
|
2,102
|
1,932
|
Income taxes
payable
|
7
|
141
|
4
|
Financial
instruments
|
-
|
-
|
123
|
Financial
debt
|
111
|
2,086
|
1,212
|
Other
liabilities
|
22
|
407
|
26
|
Deferred income
taxes
|
-
|
-
|
28
|
Total short-term
liabilities
|
921
|
17,349
|
14,161
|
Financial
debt
|
153
|
2,890
|
2,311
|
Accrued
liabilities
|
7
|
128
|
137
|
Lease
liabilities
|
1,900
|
35,797
|
34,589
|
Other
liabilities
|
78
|
1,470
|
1,820
|
Employee
benefits
|
2
|
38
|
18
|
Deferred income
taxes
|
8
|
156
|
1,095
|
Total long-term
liabilities
|
2,148
|
40,478
|
39,971
|
Total
liabilities
|
3,069
|
57,827
|
54,132
|
Equity
|
|
|
|
Capital
stock
|
158
|
2,974
|
2,974
|
Treasury
shares
|
(9)
|
(167)
|
(123)
|
Contributions for
future capital increases
|
-
|
-
|
-
|
Legal
reserve
|
15
|
291
|
291
|
Additional paid-in
capital
|
100
|
1,877
|
1,837
|
Retained earnings
(losses)
|
19
|
358
|
(2,281)
|
Accumulated other
comprehensive income (losses) (1)
|
6
|
116
|
(73)
|
Total
equity
|
289
|
5,450
|
2,625
|
Total liabilities
and equity
|
3,358
|
63,277
|
56,757
|
|
|
|
|
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
|
(1) As of December 31, 2019, the
figures include a negative foreign exchange effect of Ps.14 million
related to non-derivatives financial instruments
|
Controladora Vuela
Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
|
Consolidated
Statement of Cash Flows – Cash Flow Data Summary
|
|
|
|
|
Unaudited
(In millions of
Mexican pesos)
|
Three
months
ended December
31, 2019
(US
Dollars)*
|
Three
months
ended
December
31, 2019
|
Three months
ended December
31, 2018
|
|
|
|
|
Net cash flow
generated by operating activities
|
118
|
2,228
|
1,693
|
Net cash flow used in
investing activities
|
(44)
|
(823)
|
(748)
|
Net cash flow used in
financing activities**
|
(51)
|
(960)
|
(1,440)
|
Increase
(decrease) in cash and cash equivalents
|
24
|
445
|
(495)
|
Net foreign exchange
differences
|
(15)
|
(275)
|
277
|
Cash and cash
equivalents at beginning of period
|
414
|
7,810
|
6,082
|
Cash and cash
equivalents at end of period
|
423
|
7,980
|
5,863
|
|
|
|
|
* Peso amounts were
converted to U.S. dollars at end of period exchange rate for
convenience purposes only
|
**Includes aircraft
rental payments of Ps.1,713 million and Ps.1,591 million for the
three months ended period December 31, 2019 and 2018,
respectively
|
Controladora Vuela
Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
|
Consolidated
Statement of Cash Flows – Cash Flow Data Summary
|
|
|
|
|
Unaudited
(In millions of
Mexican pesos)
|
Twelve
months
ended December
31,
2019
(US
Dollars)*
|
Twelve months
ended December
31, 2019
|
Twelve months
ended December
31, 2018
|
|
|
|
|
Net cash flow
generated by operating activities
|
502
|
9,469
|
6,277
|
Net cash flow used in
investing activities
|
(100)
|
(1,879)
|
(1,389)
|
Net cash flow used in
financing activities**
|
(276)
|
(5,199)
|
(1) (5,946)
|
Increase
(decrease) in cash and cash equivalents
|
127
|
2,391
|
(1,059)
|
Net foreign exchange
differences
|
(15)
|
(274)
|
(29)
|
Cash and cash
equivalents at beginning of period
|
311
|
5,863
|
6,951
|
Cash and cash
equivalents at end of period
|
423
|
7,980
|
5,863
|
|
|
|
|
* Peso amounts were
converted to U.S. dollars at end of period exchange rate for
convenience purposes only
|
**Includes aircraft
rental payments of Ps.6,500 million and Ps.5,711 million for the
twelve months ended period December 31, 2019 and 2018,
respectively
|
(1)
Includes inflows of Ps.1,500 million related to the issuance of
15,000,000 asset backed trust notes (certificados bursátiles
fiduciarios)
|
Controladora Vuela
Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
|
The following table
shows unaudited 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited adjusted
figures*
|
|
|
|
|
|
|
Three months
ended March 31,
2018
|
Three months
ended
June
30,
2018
|
Three months
ended
September
30, 2018
|
Three months
ended
December 31,
2018
|
Full Year
2018
|
(In millions of
Mexican pesos)
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
Passenger
revenues
|
5,610
|
5,989
|
7,138
|
7,643
|
26,380
|
Fare
revenues
|
3,886
|
4,136
|
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
|
925
|
Other
non-passenger revenues (1)
|
192
|
187
|
124
|
194
|
697
|
Cargo
|
48
|
53
|
55
|
71
|
227
|
|
|
|
|
|
|
Total operating
revenues
|
5,850
|
6,229
|
7,317
|
7,909
|
27,305
|
|
|
|
|
|
|
Other operating
income
|
(1)
|
(231)
|
(243)
|
(147)
|
(622)
|
Fuel
|
2,175
|
2,445
|
2,630
|
2,885
|
10,135
|
Landing, take-off and
navigation expenses
|
1,122
|
1,148
|
1,147
|
1,156
|
4,573
|
Depreciation and
amortization
|
1,073
|
1,136
|
1,163
|
1,257
|
4,629
|
Salaries and
benefits
|
746
|
750
|
834
|
795
|
3,125
|
Sales, marketing and
distribution expenses
|
357
|
382
|
340
|
422
|
1,501
|
Maintenance
expenses
|
346
|
376
|
389
|
387
|
1,498
|
Aircraft and engine
rent expense
|
362
|
150
|
259
|
100
|
871
|
Other operating
expenses
|
258
|
283
|
240
|
278
|
1,059
|
Operating
expenses
|
6,439
|
6,439
|
6,759
|
7,133
|
26,770
|
|
|
|
|
|
|
Operating (loss)
income
|
(589)
|
(210)
|
558
|
776
|
535
|
Operating
margin
|
(10.1%)
|
(3.4%)
|
7.6%
|
9.8%
|
2.0%
|
|
|
|
|
|
|
Finance
income
|
34
|
38
|
37
|
44
|
153
|
Finance
cost
|
(413)
|
(461)
|
(506)
|
(496)
|
(1,876)
|
Exchange gain (loss),
net
|
1,563
|
(1,926)
|
1,396
|
(1,137)
|
(104)
|
Comprehensive
financing result
|
1,184
|
(2,350)
|
927
|
(1,588)
|
(1,827)
|
|
|
|
|
|
|
Income (loss)
before income tax
|
595
|
(2,560)
|
1,484
|
(812)
|
(1,293)
|
Income tax (expense)
benefit
|
(177)
|
747
|
(423)
|
203
|
350
|
Net income
(loss)
|
417
|
(1,811)
|
1,061
|
(610)
|
(943)
|
|
|
|
|
|
|
Earnings (loss)
per share:
|
|
|
|
|
|
Basic
(pesos)
|
0.41
|
(1.79)
|
1.05
|
(0.60)
|
(0.93)
|
Diluted
(pesos)
|
0.41
|
(1.79)
|
1.05
|
(0.60)
|
(0.93)
|
Earnings (loss)
per ADS:
|
|
|
|
|
|
Basic
(pesos)
|
4.12
|
(17.90)
|
10.49
|
(6.02)
|
(9.32)
|
Diluted
(pesos)
|
4.12
|
(17.90)
|
10.49
|
(6.02)
|
(9.32)
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
*Small
revisions to the previously estimated amounts reported for the
prior year and quarters have been made upon completion of our
implementation of IFRS
16 during 2019
|
Controladora Vuela
Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
|
The following table
shows quarterly unaudited adjustments made due to the adoption of
IFRS 16 "Leases", on the statements of operations for
2018.
|
|
|
|
|
|
|
|
Unaudited adjusted
figures*
(In millions of
Mexican pesos)
|
Full Year 2018
(Reported)
|
Three months
ended March 31,
2018
|
Three months
ended June 30,
2018
|
Three months
ended
September 30,
2018
|
Three months
ended
December 31,
2018
|
Full Year
2018
|
Operating
revenues:
|
|
|
|
|
|
|
Passenger
revenues
|
26,380
|
-
|
-
|
-
|
-
|
26,380
|
Fare
revenues
|
18,488
|
-
|
-
|
-
|
-
|
18,488
|
Other
passenger revenues (1)
|
7,892
|
-
|
-
|
-
|
-
|
7,892
|
|
|
|
|
|
|
|
Non-passenger revenues
|
925
|
-
|
-
|
-
|
-
|
925
|
Cargo
|
227
|
-
|
-
|
-
|
-
|
227
|
Other
non-passenger revenues (1)
|
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
|
(1,234)
|
(1,355)
|
(1,333)
|
(1,522)
|
871
|
Landing, take-off and
navigation expenses
|
4,583
|
(2)
|
(2)
|
(3)
|
(3)
|
4,573
|
Salaries and
benefits
|
3,125
|
-
|
-
|
-
|
-
|
3,125
|
Maintenance
expenses
|
1,518
|
(5)
|
(5)
|
(5)
|
(5)
|
1,498
|
Sales, marketing and
distribution expenses
|
1,501
|
-
|
-
|
-
|
-
|
1,501
|
Other operating
expenses
|
1,130
|
(17)
|
(18)
|
(18)
|
(18)
|
1,059
|
Depreciation and
amortization
|
501
|
940
|
1,013
|
1,048
|
1,127
|
4,629
|
Operating
expenses
|
28,186
|
(318)
|
(367)
|
(311)
|
(421)
|
26,770
|
|
|
|
|
|
|
|
Operating (loss)
income
|
(881)
|
318
|
367
|
311
|
421
|
535
|
Operating
margin
|
(3.2%)
|
|
|
|
|
2.0%
|
|
|
|
|
|
|
|
Finance
income
|
153
|
-
|
-
|
-
|
-
|
153
|
Finance
cost
|
(120)
|
(380)
|
(430)
|
(441)
|
(505)
|
(1,876)
|
Exchange (loss) gain,
net
|
(72)
|
2,255
|
(2,579)
|
1,814
|
(1,521)
|
(104)
|
Comprehensive
financing result
|
(40)
|
1,875
|
(3,009)
|
1,373
|
(2,026)
|
(1,827)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
before income tax
|
(921)
|
2,193
|
(2,642)
|
1,684
|
(1,605)
|
(1,293)
|
Income tax benefit
(expense)
|
238
|
(656)
|
794
|
(504)
|
478
|
350
|
Net (loss)
income
|
(683)
|
1,537
|
(1,848)
|
1,180
|
(1,127)
|
(943)
|
Basic (loss) earnings
per share
|
(0.67)
|
1.52
|
(1.83)
|
1.17
|
(1.11)
|
(0.93)
|
Diluted (loss)
earnings per share
|
(0.67)
|
1.52
|
(1.83)
|
1.17
|
(1.11)
|
(0.93)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
*Small revisions to
the previously estimated amounts reported for the prior year and
quarters have been made upon completion of our implementation of
IFRS 16 during 2019
|
Controladora Vuela
Compañía de Aviación, S.A.B. de C.V. and
Subsidiaries
|
|
The following table
shows unaudited balances before the adoption of IFRS 16
"Leases", on the quarterly statements of
operations for each quarter of 2018.
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
Three
months
ended March
31, 2018
(Reported)
|
Three
months
ended June
30, 2018
(Reported)
|
Three
months
ended
September
30, 2018
(Reported)
|
Three
months
ended
December
31, 2018
(Reported)
|
Full Year
2018
(Reported)
|
(In millions of
Mexican pesos)
|
|
|
|
|
|
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 unaudited annual adjustments made due to the adoption of IFRS
16 "Leases", on the
Consolidated Statement of Financial Position as of December 31,
2018.
|
|
|
|
|
Unaudited adjusted
figures*
|
|
|
|
(In millions of
Mexican pesos)
|
December 31,
2018
(Reported)
|
IFRS
16
Adjustments
|
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
|
-
|
31,995
|
31,995
|
Intangible assets,
net
|
179
|
-
|
179
|
Deferred income
taxes
|
593
|
2,719
|
3,312
|
Guarantee
deposits
|
6,337
|
-
|
6,337
|
Other
assets
|
155
|
-
|
155
|
Other accounts
receivable
|
74
|
-
|
74
|
Total non-current
assets
|
13,121
|
34,714
|
47,834
|
Total
assets
|
22,311
|
34,447
|
56,757
|
Liabilities
|
|
|
|
Unearned
transportation revenue
|
2,439
|
-
|
2,439
|
Accounts
payable
|
1,103
|
-
|
1,103
|
Accrued
liabilities
|
2,318
|
-
|
2,318
|
Lease
liabilities
|
-
|
4,976
|
4,976
|
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
|
Deferred income
taxes
|
-
|
28
|
28
|
Total short-term
liabilities
|
9,249
|
4,912
|
14,161
|
Financial
debt
|
2,311
|
-
|
2,311
|
Accrued
liabilities
|
137
|
-
|
137
|
Lease
liabilities
|
-
|
34,589
|
34,589
|
Other
liabilities
|
328
|
1,492
|
1,820
|
Employee
benefits
|
18
|
-
|
18
|
Deferred income
taxes
|
1,096
|
-
|
1,095
|
Total long-term
liabilities
|
3,890
|
36,081
|
39,971
|
Total
liabilities
|
13,139
|
40,993
|
54,132
|
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
(losses)
|
4,266
|
(6,547)
|
(2,281)
|
Accumulated other
comprehensive losses
|
(73)
|
-
|
(73)
|
Total
equity
|
9,172
|
(6,547)
|
2,625
|
Total liabilities
and equity
|
22,311
|
34,446
|
56,757
|
|
|
|
|
Total shares
outstanding fully diluted
|
|
1,011,876,677
|
1,011,876,677
|
|
|
*Small revisions to
the previously estimated amounts reported for the prior year and
quarters have been made upon completion
of our implementation of IFRS 16 during 2019
|
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 fourth quarter unaudited adjustments made due to the adoption
of IFRS 16 "Leases", on the
Consolidated Statement of Cash Flow for the three months ended
December 31, 2018.
|
|
|
|
|
Unaudited adjusted
figures*
|
|
|
|
|
Three months
ended
December 31, 2018
(Reported)
|
Adjustments
|
Three months
ended December
31, 2018
|
(In millions of
Mexican pesos)
|
|
|
|
|
Net cash flow
generated by operating activities
|
102
|
1,591
|
1,693
|
Net cash flow used in
investing activities
|
(748)
|
-
|
(748)
|
Net cash flow
generated (used in) financing activities
|
151
|
(1,591)
|
(1,440)
|
Decrease in cash
and cash equivalents
|
(495)
|
-
|
(495)
|
Net foreign exchange
differences
|
277
|
-
|
277
|
Cash and cash
equivalents at beginning of period
|
6,082
|
-
|
6,082
|
Cash and cash
equivalents at end of period
|
5,863
|
-
|
5,863
|
|
|
|
|
*Small revisions to
the previously estimated amounts reported for the prior year and
quarters have been made upon completion of our implementation
of
IFRS 16 during
2019
|
|
|
|
|
|
|
The following table
shows the YTD December 2018 unaudited adjustments made due to the
adoption of IFRS 16
"Leases", on the Consolidated Statement of Cash Flow for the twelve
months ended December 31, 2018.
|
|
|
|
|
Unaudited adjusted
figures*
|
|
Adjustments
|
Twelve months
ended December
31, 2018
|
|
|
(In millions of
Mexican pesos)
|
Twelve months
ended December 31,
2018
(Reported)
|
|
|
|
|
Net cash flow
generated by operating activities
|
566
|
5,711
|
6,277
|
Net cash flow used in
investing activities
|
(1,389)
|
-
|
(1,389)
|
Net cash flow used in
financing activities
|
(235)
|
(5,711)
|
(5,946)
|
Decrease in cash
and cash equivalents
|
(1,059)
|
-
|
(1,059)
|
Net foreign exchange
differences
|
(29)
|
-
|
(29)
|
Cash and cash
equivalents at beginning of period
|
6,951
|
-
|
6,951
|
Cash and cash
equivalents at end of period
|
5,863
|
-
|
5,863
|
|
|
|
|
*Small revisions to
the previously estimated amounts reported for the prior year and
quarters have been made upon completion of our implementation
of
IFRS 16 during
2019
|
[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)
View original
content:http://www.prnewswire.com/news-releases/volaris-reports-fourth-quarter-2019-results-20-2-operating-margin-up-10-4-percentage-points-and-7-2-trasm-increase-year-over-year-301011320.html
SOURCE Volaris