Volaris gets a new Airbus A321neo on lease from Aviation Capital Group

The aircraft leasing giant, Aviation Capital Group has confirmed the delivery of a new Airbus A321neo aircraft to Volaris.

The jet is powered by the ultra-efficient Pratt & Whitney GTF engines, this is the second of four aircraft scheduled to be delivered to the airline as part of a multiple-aircraft sale-leaseback transaction between the budget carrier and ACG.

ACG specializes in commercial aircraft leasing and aviation finance. In addition to aircraft leasing services, we provide aircraft asset management solutions tailored to meet our customers’ fleet management needs. 

Your travel planning isn’t complete without learning the language—or at least some essential phrases. Fully immerse yourself in the language, or use Phrasebook to learn travel essentials—the choice is yours!

Volaris Reports Financial Results for the Fourth Quarter 2023: Net Income of USD $112 million

 Volaris, the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central, and South America, has announced its financial results for the fourth quarter and full year 20231.

                

Fourth Quarter 2023 Highlights

(All figures are reported in U.S. dollars and compared to 4Q 2022 unless otherwise noted)

Net income of $112 million. Earnings per share of $0.10 and earnings per ADS of $0.97 cents.

Total operating revenues of $899 million, a 10% increase.

Total revenue per available seat mile (TRASM) increased 11% to $9.56 cents.

Available seat miles (ASMs) decreased 1.1% to 9.4 billion.

Total operating expenses of $735 million, representing 82% of total operating revenue.

Total operating expenses per available seat mile (CASM) decreased 2.3% to $7.81 cents.

Average economic fuel cost decreased 16% to $3.13 per gallon.

CASM ex fuel increased 11% to $4.86 cents.

EBITDAR of $281 million, a 35% increase.

EBITDAR margin was 31.3%, an increase of 6.0 percentage points.

Total cash, cash equivalents, restricted cash, and short-term investments totaled $789 million, representing 24% of the last twelve months’ total operating revenue.

Net debt-to-LTM EBITDAR2 ratio decreased to 3.4x, compared to 3.9x in 2022.

Enrique Beltranena, President & Chief Executive Officer, said: “Throughout 2023, we gained valuable lessons when resizing the operations, capitalizing on strong demand while adjusting our network, and turned a very complex situation into a solid financial result for the fourth quarter. We recorded our highest-ever historical quarterly TRASM and posted a net income of $112 million. Our performance demonstrated resilience in the face of the challenges encountered throughout the year, such as the extended FAA downgrade of Mexico to CAT 2, Pratt & Whitney's engine preventive accelerated inspections, and slot reductions at the Mexico City International Airport. Our proactive strategies and mitigation plan have proven effective.

Looking ahead, 2024 holds promise, as our booking curves and total unit revenues indicate continuing favorable trends aligned with our guidance. We expect that our focus on operational efficiency, customer satisfaction, and prudent capacity management will continue to drive profitability.”

Full Year 2023 Highlights3

(All figures are reported in U.S. dollars and compared to FY 2022 unless otherwise noted)

Net income of $8 million. Earnings per share of $0.01 and earnings per ADS of $0.07.

Total operating revenues of $3,259 million, a 14% increase.

Total revenue per available seat mile (TRASM) increased 3.8% to $8.38 cents.

Available seat miles (ASMs) increased 10% to 38.9 billion.

Total operating expenses of $3,036 million, representing 93% of total operating revenue.

Total operating expenses per available seat mile (CASM) decreased 1.7% to $7.81 cents.

Average economic fuel cost decreased 18% to $3.11 per gallon.

CASM ex fuel increased 13% to $4.81 cents.

EBITDAR of $823 million, a 40% increase.

EBITDAR margin was 25.2%, an increase of 4.7 percentage points.

Volaris Reports January 2024 Traffic Results: 88% Load Factor

Controladora Vuela Compañía de Aviación, S.A.B. de C.V.  - Volaris, the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central, and South America, reports its January 2024 preliminary traffic results.

In January 2024, Volaris' ASM capacity decreased by 10.7% year-over-year, while RPMs decreased by 8.9%; the result was a load factor increase of 1.8 pp YoY to 88.0%. Volaris transported 2.5 million passengers during the month, a 13.0% decrease compared to January 2023. Mexican domestic RPMs decreased by 20.1%, while international RPMs increased by 15.1%.

Enrique Beltranena, Volaris' President and CEO said: “The GTF engine accelerated inspections have resulted in a significant reduction in ASMs, particularly within the Mexican domestic market. This reduction has been balanced by increased capacity in international markets following Mexico’s Category 1 upgrade by the United States’ Federal Aviation Administration (FAA). Consequently, the reallocation of capacity has led to improvements in load factors within the Mexican domestic market and robust transborder traffic between Mexico and the U.S.

As highlighted last month, unit revenue growth continues to show strong performance. The shift in trend in total unit revenue that started in the fourth quarter of 2023 was sustained in January 2024. Our booking curves suggest that this positive trend will continue for the upcoming months, in line with our 2024 guidance.”

Volaris scores 85%load factor in December

Volaris, the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central, and South America, reports its December 2023 preliminary traffic results.

In December 2023, Volaris' ASM capacity decreased by 3.1% year-over-year, while RPMs decreased by 2.3%; the result was a load factor increase of 0.7 pp YoY to 85.4%. Volaris transported 2.8 million passengers during the month, a 4.6% decrease compared to December 2022. Mexican domestic RPMs decreased by 11.1%, while international RPMs increased by 18.4%.

Enrique Beltranena, Volaris' President and CEO said: "Our December traffic results reinforced our confidence in the resilience of our network and the strength of our business plan for 2024. We are pleased with the demand we experienced during the holiday high season, which, along with the changes we have implemented to our network, helped us achieve high-single-digit year-over-year total unit revenue growth. Equally important, our booking curve gives us confidence that this trend will be sustained in the first quarter".

	Dec 2023		Dec 2022		Variance		YTD Dec 2023		YTD Dec 2022		Variance
RPMs (million, scheduled & charter)
Domestic	1,809		2,034		-11.1%		22,422		21,623		3.7%
International	1,020		861		18.4%		11,027		8,569		28.7%
Total	2,829		2,895		-2.3%		33,449		30,191		10.8%
ASMs (million, scheduled & charter)
Domestic	2,025		2,385		-15.1%		25,630		24,604		4.2%
International	1,286		1,034		24.4%		13,260		10,676		24.2%
Total	3,311		3,419		-3.1%		38,890		35,281		10.2%
Load Factor (%, scheduled, RPMs/ASMs)
Domestic	89.3%		85.3%		4.0 pp		87.5%		87.9%		(0.4) pp
International	79.3%		83.3%		(4.0) pp		83.2%		80.3%		2.9 pp
Total	85.4%		84.7%		0.7 pp		86.0%		85.6%		0.4 pp
Passengers (thousand, scheduled & charter)
Domestic	2,108		2,342		-10.0%		25,909		25,043		3.5%
International	706		606		16.4%		7,588		6,007		26.3%
Total	2,813		2,949		-4.6%		33,497		31,051		7.9%

The information included in this report has not been audited and does not provide information on the Company’s future performance. Volaris’ future performance depends on several factors. It cannot be inferred that any period’s performance or its comparison year over year will indicate a similar performance in the future.

Volaris reports load factor of 90% in November 2023 results.....

Volaris,  the ultra-low-cost carrier serving Mexico, the United States, Central, and South America, has reported a load factor of almost 90% during November 2023.

In November 2023, Volaris' ASM capacity decreased by 2.2% year-over-year, while RPMs decreased by 0.2%; the result was a load factor increase of 1.8 pp YoY to 89.8%. Volaris transported 2.7 million passengers during the month, a 0.9% decrease compared to November 2022. Mexican domestic RPMs decreased by 7.9%, while international RPMs increased by 17.6%.

Enrique Beltranena, Volaris' President and CEO, said: "In response to reduced Pratt & Whitney ("P&W") engine availability in November, we reduced domestic ASMs and redeployed capacity to the US market by capitalizing on Category 1 opportunities. This strategic approach successfully aligned with positive demand, consistent with our full-year expectations.

Looking forward, it is noteworthy that we have reached an agreement with P&W that contemplates compensation for each GTF engine removed from our fleet. The agreement will help address fixed costs associated with the engines during inspections"

Nov 2023	Nov 2022	Variance	YTD Nov 2023	YTD Nov 2022	Variance
RPMs (million, scheduled & charter)
Domestic	1,736	1,886	-7.9%	20,613	19,588	5.2%
International	967	822	17.6%	10,008	7,708	29.8%
Total	2,703	2,707	-0.2%	30,620	27,296	12.2%
ASMs (million, scheduled & charter)
Domestic	1,867	2,097	-11.0%	23,605	22,220	6.2%
International	1,143	980	16.7%	11,974	9,643	24.2%
Total	3,011	3,077	-2.2%	35,579	31,862	11.7%
Load Factor (%, scheduled, RPMs/ASMs)
Domestic	93.0%	89.9%	3.1 pp	87.3%	88.2%	(0.8) pp
International	84.5%	83.9%	0.7 pp	83.6%	79.9%	3.6 pp
Total	89.8%	88.0%	1.8 pp	86.1%	85.7%	0.4 pp
Passengers (thousand, scheduled & charter)
Domestic	2,047	2,164	-5.4%	23,801	22,701	4.8%
International	667	576	15.8%	6,883	5,401	27.4%
Total	2,714	2,740	-0.9%	30,684	28,102	9.2%

The information included in this report has not been audited and does not provide information on the Company’s future performance. Volaris’ future performance depends on several factors. It cannot be inferred that any period’s performance or its comparison year over year will indicate a similar performance in the future.

Aviation Capital Group confirms delivery of a new Airbus A321neo to Volaris

Aviation Capital Group has confirmed the delivery of one new Airbus A321neo aircraft on long-term lease to Volaris. Powered by the ultra-efficient Pratt & Whitney GTF engines, this is the first of four aircraft scheduled to deliver to the airline as part of a multiple-aircraft sale-leaseback transaction between ACG and Volaris.

Aviation Capital Group is one of the world’s premier full-service aircraft asset managers with over 490 owned, managed and committed aircraft as of September 30, 2023, leased to roughly 90 airlines in approximately 45 countries. It was founded in 1989 and is a wholly owned subsidiary of Tokyo Century Corporation.

Volaris, the low-cost airline recently released details of its third quarter results which a 10% increase on total operating revenues of $848 million, with available seat miles up 8.2% to 10.1 billion.  Net loss of $39 million with EBITDAR of $207 million.

Enrique Beltranena, President and chief Executive Officer, said: “Volaris' performance in the third quarter showed resilience, resulting in revenue growth. This growth was mainly due to increased passenger volumes and record-high ancillary revenue per passenger. We achieved this by maintaining strong cost control, especially when it came to non-fuel expenses.

Despite facing challenges related to Pratt & Whitney's GTF preventive accelerated inspections, Volaris is fully committed to ensuring the safety, financial stability, and long-term success of our airline. We are actively addressing the global issue of engine inspections affecting multiple airlines and are working closely with Pratt & Whitney to obtain the necessary technical support and financial compensation for the affected engines.

We’ve developed a mitigation plan to partially offset the impact. Our focus for 2024 is to maximize unit revenues and margins while optimizing our network to the best extent possible given the current environment.”

 

Volaris reports September 2023 traffic results

Volaris the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central, and South America, reports its September 2023 preliminary traffic results.

In September 2023, Volaris’ capacity (measured in ASMs) increased by 7.5% year-over-year, while demand (measured in RPMs) increased by 3.1%; the result was a load factor decrease of 3.6 pp YoY to 83.8%. Volaris transported 2.5 million passengers during the month, a 0.6% decrease compared to September 2022. Demand (measured in RPMs) in the Mexican domestic market decreased by 4.6%, while in the international market, demand increased by 22.4%.

During the third quarter of 2023, the average economic fuel cost was $3.16 per gallon, an increase of 17% compared to the second quarter of 2023.

Volaris successfully completes Ps. $1.5 billion Asset-Backed Trust Notes Offering

Volaris, the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central, and South America, has successfully concluded the issuance of 15 million asset-backed trust notes an Mexico under the ticker VOLARCB 23, totalling Ps. $1.5 billion.

This is the third offering under the program authorized by the Mexican National Banking and Securities Commission for an amount of up to Ps. $5.0 billion.

These Trust Notes are backed by future collection rights under agreements entered with credit card processors for the sale of airline tickets and other related services through VISA and Mastercard credit cards, through our internet portal, travel agencies, call centres and sales offices.

The Trust Notes were rated "HR AA+ (E)" and "AA+/M(e)" by the rating agencies HR Ratings de México, S.A. de C.V. and Verum Calificadora de Valores, S.A.P.I. de C.V., respectively, and have a five-year maturity term and carry an interest rate of 28-day TIIE (interbank rate) + 215 basis points.

This communication does not constitute an offer to sell or an offer to purchase, nor shall there be or give rise to the possibility of any sale of the Trust Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration under the laws governing financial instruments in such jurisdiction.

Volaris has disclosed 25 A321neo from a purchase agreement signed in October 2022.

Mexican ultra-low-cost airline and all-Airbus operator Volaris has disclosed 25 A321neo from a purchase agreement signed in October 2022. 

These aircraft bring Volaris total backlog to 143 A320neo Family aircraft, which will support the airline’s continuous fleet renewal and expansion, powered by Pratt & Whitney engines.

“These A321neos will support our long-term business viability and sustainability strategy while moving us closer to operating an all-NEO fleet by 2028. Our 143 aircraft backlog demonstrates Volaris financial strength and will guarantee our growth in the Mexican market as well as in routes to the United States and Central America," said Enrique Beltranena, Volaris President and Chief Executive Officer.

“The A321neo’s superior performance and efficiency will continue to drive Volaris’ network growth. As the fleet grows the airline will be well-positioned to meet future demand, especially in the Mexican leisure market. We look forward to working closely with Volaris as it continues to spread its wings," said Christian Scherer, Chief Commercial Officer and Head of Airbus International.

The A321neo is the largest-fuselage member of Airbus’ best-selling single-aisle A320 Family. The A321neo allows operators to cover the entire market while offering the lowest seat-mile cost of any single-aisle available.

Volaris became an Airbus customer in 2006, and since then the airline has ordered 206 A320 Family aircraft, including more than 170 A320neo Family aircraft. Volaris is the largest A320neo Family operator in Latin America.

Airbus has sold over 1,150 aircraft in Latin America and the Caribbean. More than 750 are in operation throughout the region, with another 500 in the order backlog, representing a market share of nearly 60% of in-service passenger aircraft. Since 1994, Airbus has secured 75% of net orders in the region.

Volaris gets a brand new Airbus A321neo featuring Cabin Flex

Leasing giant CDB Aviation, part of the China Development Bank Financial Leasing Co. has confirmed the delivery of the first of two Airbus A321neo aircraft fitted with Airbus’ Cabin Flex  (“A321NX”) to its long-standing customer, the leading Latin American airline Volaris.

This delivery is part of the lease agreements signed with the airline in 2021, which includes 13 aircraft. CDB Aviation expects to deliver the second A321NX by the end of 2023, with an additional three A321neos and two A320neos slated for delivery throughout 2023 and 2024.

“We’re thrilled to be celebrating with the Volaris team this inaugural delivery of a GTF-powered A321NX from our orderbook,” said Luís da Silva, CDB Aviation’s Head of Commercial, Americas. “With the latest technologies that improve efficiency and sustainability, this aircraft is ideally suited to expand the reach of Volaris’ market-dominant domestic brand to markets in North and Latin America.”

“We appreciate the ongoing partnership with our colleagues at CDB Aviation in meeting the needs of our fleet renewal strategy that will ensure our airline’s sustainable growth in the long term,” commented Holger Blankenstein, Volaris’ Executive Vice President. “With one of the youngest, most fuel-efficient fleets in the Americas, our team remains committed to bringing the region’s passengers the best flying experience and the most modern technology aircraft.”

Volaris does new sale and leaseback deal on five Airbus planes with CDB Aviation

Volaris an ultra-low-cost carrier from Mexico operating point-to-point flights across Mexico, the United States and Central America has done a new sale and leaseback deal on five Airbus Aircraft, comprising of two A320neos and three A321neos with China Development Bank Financial Leasing Company subsidiary CDB Aviation.

The new agreement brings the number of CDB Aviation aircraft on lease to Volaris to a total of thirteen aircraft, which were secured through the lessor’s order book with Airbus, as well as Sale and Leaseback transactions with and without Pre-Delivery Payments. Four of the aircraft were already delivered and the further nine will be delivered by the fourth quarter of 2024.

“We are thrilled to be deepening our ongoing collaboration with the Volaris team in support of efforts to bolster their leadership position in the Mexican domestic market and execute on an aggressive strategy of growth and strong operational performance,” asserted Luís da Silva, CDB Aviation Head of Commercial, Americas.

“With one of the youngest, most fuel-efficient fleets in America, and alongside partners at CDB Aviation, we reinforce our ESG strategy to ensure sustainable growth in the long term. These deliveries will also bring our clients the best flying experience in the most modern technology aircraft,” said Enrique Beltranena, Volaris’ President and Chief Executive Officer.

Peter Goodman, CDB Aviation’s Chief Marketing Officer, concluded: “CDB Aviation is well-positioned to provide airlines with access to an established fleet of varied new and used aircraft types as well as wide-ranging and innovative financing solutions, anchored with the platform’s robust ability to expediently secure aircraft placements through SLB and PDP transactions.”

Follow this site here.

Massive Airbus order for Indigo Partners portfolio of airlines - 255 A321neo family aircraft

Indigo Partners, the private equity fund focused on worldwide investments in air transportation and based in Phoenix, Arizona has confirmed a massive order for its airlines from European planemaker Airbus.

Jointly, the airlines will order an additional 255 Airbus A321neo family of aircraft in a special deal that was inked at the Dubai Airshow. With this new commitment,  the total number of aircraft ordered by the Indigo Partners’ airlines will climb to 1,145.

Wizz Air: 102 aircraft (75 A321neo + 27 A321XLR)

Frontier: 91 aircraft (A321neo)

Volaris: 39 aircraft (A321neo)

JetSMART: 23 aircraft (21 A321neo + 2 A321XLR)

In addition to this order, Volaris and JetSMART will upconvert 38 A320neo to A321neo from their existing aircraft backlogs.

“This order reaffirms our portfolio airlines’ commitment to consistent growth through the next decade. The Airbus A321neo and A321XLR have industry-leading efficiency, low unit costs and a substantially reduced carbon footprint relative to prior models. With these aircraft, Wizz, Frontier, Volaris and JetSMART will continue to offer low fares, stimulate the markets they serve and improve their industry-leading sustainability profile,” said Bill Franke, Managing Partner of Indigo Partners.

“We are happy to further expand our relationship with our great Indigo Partners’ airlines Wizz, Frontier, Volaris and JetSMART who have acted fast and decisively over the last few months to position themselves for this landmark order as the effect of the pandemic recedes and the world wants more sustainable flying,” said Christian Scherer, Airbus Chief Commercial Officer and Head of Airbus International.

The A321neo incorporates new generation engines and Sharklets, which together deliver more than 25 percent fuel and CO 2 savings, as well as a 50 percent noise reduction. The A321XLR version provides a further range extension to 4,700nm. This gives the A321XLR a flight time of up to 11 hours, with passengers benefitting throughout the trip from Airbus’ award-winning Airspace interior, which brings the latest cabin technology to the A320 Family.

More top stories you might be interested in.....

Follow this site here.

CDB Aviation buy four Airbus A320neo from Volaris and lease them back.

CDB Aviation announced the signing of a new agreement with Mexico’s number one airline, Volaris, for the sale and leaseback of four new Airbus A320neo aircraft.

The aircraft, two of which are scheduled to deliver to Volaris by October 2021, with the remaining two expected to arrive by May 2022, are leased on a long-term basis, bringing the total of CDB Aviation aircraft on lease to the carrier to 6.

Luís da Silva, CDB Aviation Head of Commercial, Americas, said: “We are very pleased to offer tremendous value to our existing customer, Volaris, by leveraging the financial strength of our balance sheet and platform’s ability to move quickly in today’s demanding market conditions.”

The neos will support the optimization of the carrier’s fleet plan as it targets to reinforce its low-unit cost operating model to meet post-COVID-19 traffic requirements in alignment with the company’s sustainability strategy.

“Volaris will continue an aggressive strategy on growth and strong operational performance. Therefore, our fleet expansion is one of the main pillars of our ultra-low-cost model and will help us reinforce both local and international presence in all the markets we serve,” said Holger Blankenstein, Volaris’ Executive Vice President.

Aviation Capital Group deliver second A320neo to Volaris

Aviation Capital Group, one of the global leaders in aircraft asset management have confirmed the delivery of a new Airbus A320neo aircraft on a long-term lease to Volaris. 

This aircraft, featuring Pratt & Whitney PW1100G-JM engines and is the second A320neo ACG has delivered to Volaris as part of a multi-aircraft transaction between ACG and the airline.

Aviation Capital Group was founded in 1989 and is one of the world’s premier full-service aircraft asset managers with approximately 400 owned, managed and committed aircraft as of March 31, 2021, which are leased to approximately 85 airlines in approximately 40 countries. ACG is a wholly-owned subsidiary of Tokyo Century Corporation.

Volaris, is an ultra-low-cost airline with flights throughout Mexico, the US, Costa Rica, Guatemala, and El Salvador. Volaris offers low-cost airline tickets to develop the market, offering Customers high-quality service and a wide range of products.

Four New Airbus A320neo aircraft for Volaris

Air Lease Corporation announced long-term lease placements for four new Airbus A320neo aircraft with Volaris (Mexico). Two of the aircraft are from ALC’s order book with Airbus and two are from sale-leasebacks acquired from a third party by one of our management vehicles. The four new A320neos are set to deliver during the remainder of Q2. 

“ALC is pleased to further expand its relationship with Volaris, Mexico’s largest airline,” said John L. Plueger, Chief Executive Officer and President of Air Lease Corporation. “These aircraft will play a key role in satisfying the strong summer traffic demand that Volaris is forecasting. Further, these transactions illustrate another successful pairing of a sale-leaseback under our management business combined with direct placements from ALC’s order book.”

More top stories you might be interested in.....