Mexico’s Volaris more than doubles full-year net profit to $41 million
Feb 26, 2015 Mark Nensel
Buoyed by a strong fourth-quarter performance, Mexico City-based ultra-low-cost-carrier (ULCC) Volaris posted a full-year net profit of MXP605 million ($41 million) for 2014, more than doubling its 2013 net result (MXP265 million). Volaris’ fourth-quarter net profit was MXP703 million, reversing the carrier’s MXP97 million net loss in 4Q 2013.
Volaris’ operating revenue for the full-year was MXP14.04 billion, up 8% YOY. Non-ticket (ancillary) revenue for the full-year was MXP2.73 billion, up 45% YOY. Volaris’ fourth-quarter revenue came to MXP3.96 billion, up 24.3% YOY; non-ticket revenue for the fourth-quarter was MXP818 million, up 81.2% YOY.
Per passenger, non-ticket revenues (excluding cargo) increased 50.3% year-over-year (YOY) in 2014 to MXP256 ($17.33), up from MXP170 ($13) in 2013. In the fourth quarter, per passenger ancillary revenues excluding cargo grew 85.6% YOY to MXP293 ($19.84), up from MXP158 ($12.08) in 4Q 2013.
Volaris’ full-year operating expenses came to MXP13.83 billion, up 9% YOY, producing a full-year operating profit of MXP204 million, a drop of 35.7% YOY from 2013’s MXP317 million operating income. In the fourth-quarter, Volaris had MXP3.53 billion in operating expenses, up 4.5% YOY; the carrier registered a MXP426 million operating profit during the quarter, reversing MXP197 million in operating losses in the 2013 December quarter.
Volaris’ traffic in 2014 was up 8% YOY to 9.72 billion RPMs on an 8.5% capacity rise to 11.83 billion ASMs, creating a full-year load factor of 82.2%, down 0.4 point from 2013. Volaris booked 9.8 million passengers in 2014, a 9.7% increase from 8.9 million passengers in 2013. Full-year yield fell 5.9% year-over-year to 7.9 US cents. CASM excluding fuel fell 8.8% year-over-year to 4.9 US cents.
CEO Enrique Beltranena lauded Volaris’ fourth-quarter surge, noting “the network adjustments and non-ticket revenue growth strategy together with a continuous focus on cost control produced … EBITDAR, operating and net margin expansions.”
Volaris opened 24 new domestic and 12 new international point-to-point routes in 2014. As of Dec. 31, 2014 Volaris has 50 aircraft in its fleet, comprised of 32 Airbus A320s and 18 A319s. The company expects to end 2015 with 55 aircraft; two A321s are due for delivery during the 2015 second-quarter.
Volaris’ operating revenue for the full-year was MXP14.04 billion, up 8% YOY. Non-ticket (ancillary) revenue for the full-year was MXP2.73 billion, up 45% YOY. Volaris’ fourth-quarter revenue came to MXP3.96 billion, up 24.3% YOY; non-ticket revenue for the fourth-quarter was MXP818 million, up 81.2% YOY.
Per passenger, non-ticket revenues (excluding cargo) increased 50.3% year-over-year (YOY) in 2014 to MXP256 ($17.33), up from MXP170 ($13) in 2013. In the fourth quarter, per passenger ancillary revenues excluding cargo grew 85.6% YOY to MXP293 ($19.84), up from MXP158 ($12.08) in 4Q 2013.
Volaris’ full-year operating expenses came to MXP13.83 billion, up 9% YOY, producing a full-year operating profit of MXP204 million, a drop of 35.7% YOY from 2013’s MXP317 million operating income. In the fourth-quarter, Volaris had MXP3.53 billion in operating expenses, up 4.5% YOY; the carrier registered a MXP426 million operating profit during the quarter, reversing MXP197 million in operating losses in the 2013 December quarter.
Volaris’ traffic in 2014 was up 8% YOY to 9.72 billion RPMs on an 8.5% capacity rise to 11.83 billion ASMs, creating a full-year load factor of 82.2%, down 0.4 point from 2013. Volaris booked 9.8 million passengers in 2014, a 9.7% increase from 8.9 million passengers in 2013. Full-year yield fell 5.9% year-over-year to 7.9 US cents. CASM excluding fuel fell 8.8% year-over-year to 4.9 US cents.
CEO Enrique Beltranena lauded Volaris’ fourth-quarter surge, noting “the network adjustments and non-ticket revenue growth strategy together with a continuous focus on cost control produced … EBITDAR, operating and net margin expansions.”
Volaris opened 24 new domestic and 12 new international point-to-point routes in 2014. As of Dec. 31, 2014 Volaris has 50 aircraft in its fleet, comprised of 32 Airbus A320s and 18 A319s. The company expects to end 2015 with 55 aircraft; two A321s are due for delivery during the 2015 second-quarter.
