VLRS Earnings Prediction
The chart below shows how VLRS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VLRS sees a -0.13% change in stock price 10 days leading up to the earnings, and a +0.11% change 10 days following the report. On the earnings day itself, the stock moves by -1.22%. This data can give you a slight idea of what to expect for the next quarter's release.
VLRS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
835.00M
-7.07%
2.73%
Gross Margin
30.54%
--
--
Operating Margin
14.01%
-23.23%
-9.79%
Net Margin
5.51%
-55.81%
20.83%
EPS
0.04
-55.56%
33.33%
No Data Available
VLRS Earnings Analysis
Controladora Vuela Compania de Aviacion SAB de CV Corporation (VLRS.N) Earnings Conference Call
Positive
Strong Financial Performance: 2024 was a remarkable year for Volaris, generating strong top and bottom-line results despite challenges.
EBITDAR Margin Achievement: Volaris posted a full-year EBITDAR margin of 36%, showcasing effective management and operational efficiency.
Consistent Net Profit Achievement: The company achieved a net profit each quarter, reflecting resilience and effective cost control measures.
Stable Revenue Performance: Volaris maintained a stable revenue stream of $3.1 billion in total revenue, nearly the same level as 2023, despite flying 13% fewer ASMs.
Operational Performance Metrics: Operationally, Volaris achieved 99.5% scheduled reliability and 83% on-time performance, indicating strong operational performance.
Customer Satisfaction Improvement: The company experienced a decline in customer complaints and improvements in key commercial metrics, including a Net Promoter Score of 37.4%, outperforming many competitors.
Safety Ranking Achievement: Volaris earned a Top 10 ranking in airline ratings 2025 list of the safest low-cost carriers worldwide, highlighting its commitment to safety.
Aircraft Efficiency Improvement: The arrival of new aircraft from previous purchase orders is expected to improve fuel efficiency and reduce fleet ownership costs.
Fleet Maintenance Efficiency: Volaris successfully managed engine inspections and maintenance schedules, minimizing aircraft downtime and sustaining fleet availability.
TRASM and Ancillary Revenue Growth: The company achieved a TRASM of $0.0924, up 10% year-over-year, driven by record ancillary revenues per passenger of $55, which rose 15%.
Ancillary Strategy Enhancement: Volaris has a strong focus on enhancing its ancillary strategy, with significant growth in its affinity programs and customer engagement initiatives.
Strong Liquidity Position: The company ended 2024 with a total liquidity position of $954 million, representing 30% of total operating revenues, indicating strong financial health.
Negative
Earnings Miss Report: Controladora Vuela Compañía de Aviación, S.A.B. de C.V. misses on earnings expectations, reporting EPS of $0.39 against expectations of $0.55.
Q4 Revenue Decline: Total operating revenues for Q4 2024 declined by 7% due to fewer ASMs and softer unit revenues, attributed to the depreciation of the Mexican peso against the US dollar.
Rising Operational Costs: CASM increased by 3% to $0.0804, while CASM ex-fuel rose by 17% to $0.0568, indicating rising operational costs.
Unit Cost Challenges: Despite a 20% drop in average economic fuel cost, unit costs remain under pressure due to aircraft groundings and maintenance events.
One-Time Cost Pressure: The company anticipates a one-time cost pressure of approximately $100 million in 2025 due to redelivery accruals and related maintenance.
Capacity Decrease Analysis: Volaris experienced a significant system-wide capacity decrease of 13% in 2024, with domestic capacity down by 22%.
TRASM Performance Challenges: The overall TRASM of $0.093 came in weaker than expected, despite record ancillary sales, indicating challenges in base fare performance.
ASM Growth Reduction: The company expects a lower ASM growth of around 13% for 2025, which is a reduction from previous guidance, reflecting ongoing challenges with engine inspections and delivery delays.
Travel Demand Concerns: Increased concerns from passengers regarding new immigration and travel controls could impact demand, particularly for travel between the US and Mexico.
VLRS FAQs
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VLRS Earning Call Sentiment
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS) Q4 2024 Earnings Call Transcript
VLRS.N
-0.78%Positive
The earnings call presents a mixed picture: strong EBITDAR growth and improved financial health are offset by risks like engine inspections and geopolitical uncertainty. The lack of a shareholder return plan and stable revenue despite capacity cuts suggest a cautious market sentiment. The Q&A reveals concerns over traffic reduction and FX impact, but also shows management's confidence in future capital deployment. Without a market cap, the prediction is neutral, as positive and negative factors balance out.
