Volaris* (NYSE: VLRS and BMV: VOLAR), the ultra-low-cost airline serving Mexico, the United States and Central America, reported March2020 preliminary traffic results.
In March 2020, capacity measured by ASMs (Available Seat Miles) decreased by 5.6% vs the same period of last year, while demand measured by RPMs (Revenue Passenger Miles) decreased 10.3% year over year. Volaris transported a total of 1.6 million passengers during the month of March, a decrease of 12.8% year over year. Network-wide load factor for March 2020 was 82.3%, a decrease of 4.3 pp versus last year.
These decreases were a result of the decline in demand related to the virus SARS-CoV-2 (COVID-19) pandemic, which affected Volaris at the end of March.
On March 24, 2020 the Company announced a decrease in capacity measured by available seat miles (ASMs) for the months of March and April 2020 of approximately 50% versus the scheduled originally published.
On March 30, 2020 the Mexican government through the General Health Council declared a health emergency due to force majeure, which will be in effect until April 30, 2020. As a result, on March 31, 2020 Volaris announced an additional capacity reduction for the month of April 2020, which results in a decrease of approximately 80% versus the originally scheduled capacity.
Volaris’ President and Chief Executive Officer, Enrique Beltranena, commenting on the traffic results for March 2020, said: “At the end of March 2020, the Company began to experience a significant drop in the demand for air travel which has seriously affected the entire aviation industry as a result of the pandemic caused by the COVID-19. Despite this, March passenger demand delivered a load factor of 82.3%.”
The following table summarizes Volaris traffic results for the month and year to date.
|
March |
March |
Variance |
March YTD 2020 |
March YTD 2019 |
Variance |
|
|
RPMs (in millions, scheduled & charter) |
||||||
|
Domestic |
1,123 |
1,234 |
(9.0%) |
3,660 |
3,386 |
8.1% |
|
International |
404 |
468 |
(13.8%) |
1,506 |
1,358 |
10.9% |
|
Total |
1,527 |
1,702 |
(10.3%) |
5,166 |
4,744 |
8.9% |
|
ASMs (in millions, scheduled & charter) |
||||||
|
Domestic |
1,309 |
1,381 |
(5.2%) |
4,253 |
3,971 |
7.1% |
|
International |
546 |
584 |
(6.5%) |
1,842 |
1,733 |
6.3% |
|
Total |
1,855 |
1,965 |
(5.6%) |
6,095 |
5,704 |
6.9% |
|
Load Factor (in %, scheduled) |
||||||
|
Domestic |
85.8% |
89.4% |
(3.6) pp |
86.1% |
85.3% |
0.8 pp |
|
International |
73.9% |
80.1% |
(6.2) pp |
81.7% |
78.6% |
3.1 pp |
|
Total |
82.3% |
86.6% |
(4.3) pp |
84.7% |
83.2% |
1.5 pp |
|
Passengers (in thousands, scheduled & charter) |
||||||
|
Domestic |
1,292 |
1,469 |
(12.1%) |
4,229 |
4,004 |
5.6% |
|
International |
276 |
329 |
(16.1%) |
1,048 |
958 |
9.3% |
|
Total |
1,568 |
1,798 |
(12.8%) |
5,277 |
4,962 |
6.3% |
The information included in this report has not been audited and it does not provide information on the company’s future performance. Volaris’ future performance depends on many factors and it cannot be inferred that any period’s performance or its comparison year over year will be an indicator of a similar performance in the future.