Q2 2024 Controladora Vuela Compania de Aviacion SAB de CV Earnings Call Transcript
Key Points
- Controladora Vuela Compania de Aviacion SAB de CV (VLRS) recorded its highest absolute EBITDAR for the second quarter, despite managing a capacity reduction due to engine inspections.
- The company successfully coordinated with Pratt & Whitney to improve engine turnaround times, leading to a more optimistic ASM guidance.
- Volaris' ancillary revenue strategy is strong, with ancillaries comprising more than 50% of total revenues and ancillaries per passenger rising 15% year-over-year.
- The company has maintained a significant cost advantage over US peers, with approximately 70% of costs being variable, ensuring competitive pricing.
- Volaris ended the quarter with a strong liquidity position of $758 million, representing 23% of the last 12 months' total operating revenues.
- Approximately one-fourth of the fleet remains grounded due to ongoing engine inspections, impacting capacity.
- Total operating revenues decreased by 7% year-over-year due to a 17% reduction in capacity.
- The company faces ongoing challenges with engine time on wing, which remains a significant issue.
- There is uncertainty around macroeconomic variables due to the legislative agenda and government transitions in Mexico and the US.
- Maintenance costs are expected to fluctuate due to timing, which could impact cost predictions for the remainder of the year.
Good morning, everyone. Thank you for standing by, and welcome to Volaris second quarter 2024 financial results conference call. (Operator Instructions).
We will open the call up for your questions. Please note that we are recording this event. This event is also being broadcast live via webcast and can be accessed through the Valaris website.
At this point, I would now like to turn the call over to Ricardo Martinez, Investor Relations Director. Please go ahead.
Good morning and thank you for joining the call. With us is our President and CEO, Enrique Beltranena; our Airline Executive Vice President, Holger Blankenstein; and our Chief Financial Officer, Jaime Pous. They will be discussing the company's second quarter 2024 results. Afterwards, 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 statements within the meaning of
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