Volaris reports significant reduction in losses in 2Q2014 and 1H2014

Volaris revenue up 9% - financial highlights:

• Three months ended 30-Jun-2014:
• • Operating revenue: USD254 million, +9.0% year-on-year;
  • Operating costs: USD261 million, +16.0%;
  • • Fuel: USD103 million, +20.4%;
    • Aircraft and engine lease: USD48 million, +21.9%;
  • Operating profit (loss): (USD7 million), compared to a loss of USD95 million in p-c-p;
  • Net profit (loss): (USD6 million), compared to a loss of USD75 million in p-c-p;
  • Operating revenue per ASM: USD 8.7 cents, -5.3%;
  • Passenger revenue per ASM: USD 7.0 cents, -10.7%;
  • Passenger yield: USD 8.5 cents, -9.5%;
  • Operating cost per ASM: USD 8.9 cents, +0.8%;
  • Cost per ASM excl fuel: USD 5.4 cents, -1.5%;
• Six months ended 30-Jun-2014:
• • Operating revenue: USD467 million, -0.2%;
  • Operating costs: USD512 million, +11.9%;
  • • Fuel: USD202 million, +13.6%;
    • Aircraft and engine lease: USD94 million, +18.6%;
  • Operating profit (loss): (USD45 million), compared to a loss of USD583 million in p-c-p;
  • Net profit (loss): (USD34 million), compared to a loss of USD445 million in p-c-p;
  • Operating revenue per ASM: USD 8.2 cents, -11.7%;
  • Passenger revenue per ASM: USD 6.7 cents, -15.9%;
  • Passenger yield: USD 8.2 cents, -15.3%;
  • Operating cost per ASM: USD 9.0 cents, -0.9%;
  • Cost per ASM excl fuel: USD 5.5 cents, -1.9%;
  • Total assets: USD679 million;
  • Cash and cash equivalents: USD160 million;
  • Total liabilities: USD409 million. [more - original PR]

Volaris: "In the second quarter of 2014, fare and demand environment showed early signs of stabilization and then gradual recovery from the challenging fourth quarter 2013 and first quarter 2014 market conditions. The Volaris team turned around our key performance indicators throughout the most difficult months of the last years, resulting in an improvement compared to the first quarter. We consciously managed ASM capacity both, in terms of quantity and quality. Volaris delivered a monthly sequential improvement in total unit revenues. Capacity growth was controlled and redeployed where needed. Such improvement is uncommon in the aviation industry in such short timeframe. We are cautiously encouraged by the recent trends, and continue to see evidence of improvement in the economic environment and in our business performance going forward," Enrique Beltranena, CEO. Source: Company statement, 28-Jul-2014.