Volaris Reports June 2020 Traffic Results: Gradual recovery of demand and capacity
Volaris* (NYSE: VLRS and BMV: VOLAR), the ultra-low-cost airline serving Mexico, the United States and Central America, reports June2020 preliminary traffic results.
In June 2020, Volaris carefully managed its network in response to the decline in demand for air travel due to the SARS-CoV-2 (COVID-19) pandemic. Management's focus has been on generating marginal contribution and thus, capacity measured by ASMs (Available Seat Miles) was 41% of the same period last year, above the guidance originally issued by the Company. This is an increase of 234% versus May 2020. Demand measured by RPMs (Revenue Passenger Miles) was 34% of last year's value. This represents an increase of 179% versus the previous month. Volaris transported a total of 585 thousand passengers during the month of June, an increase of 175% versus May and 31% of 2019 result. Booked load factor for June 2020 was 73.1%, a decrease of 16.2 pp year over year.
During June 2020, Volaris announced five domestic routes from Mexico City to the following cities: Torreon, Coahuila; Ciudad del Carmen, Campeche; Campeche, Campeche; Tampico, Tamaulipas and Villahermosa, Tabasco.
Volaris' President and Chief Executive Officer, Enrique Beltranena, commenting on the traffic results for June 2020, said: "We are seeing a gradual recovery of demand that was accelerating towards the end of June and into July. Volaris has been promoting safe travel protocols to gain trust of the customers and has reinforced its bus switching campaigns highlighting the advantages of traveling by airplane. For July 2020 Volaris plans to operate approximately 60% of its capacity versus the originally published schedule in response to a gradual recovery of the market."
The following table summarizes Volaris traffic results for the month and year to date.
|
June
|
June
|
Variance |
June YTD 2020 |
June YTD 2019 |
Variance |
|
|
RPMs (in millions, scheduled & charter) |
||||||
|
Domestic |
478 |
1,245 |
(61.6%) |
4,596 |
7,198 |
(36.2%) |
|
International |
125 |
550 |
(77.3%) |
1,708 |
2,916 |
(41.4%) |
|
Total |
603 |
1,795 |
(66.4%) |
6,304 |
10,114 |
(37.7%) |
|
ASMs (in millions, scheduled & charter) |
||||||
|
Domestic |
690 |
1,363 |
(49.4%) |
5,455 |
8,221 |
(33.6%) |
|
International |
135 |
647 |
(79.1%) |
2,078 |
3,637 |
(42.9%) |
|
Total |
825 |
2,010 |
(58.9%) |
7,533 |
11,858 |
(36.5%) |
|
Load Factor (in %, scheduled, RPMs/ASMs) |
||||||
|
Domestic |
69.3% |
91.3% |
(22.0) pp |
84.2% |
87.6% |
(3.4) pp |
|
International |
92.6% |
85.1% |
7.5 pp |
82.2% |
80.3% |
1.9 pp |
|
Total |
73.1% |
89.3% |
(16.2) pp |
83.7% |
85.3% |
(1.6) pp |
|
Passengers (in thousands, scheduled & charter) |
||||||
|
Domestic |
505 |
1,495 |
(66.2%) |
5,206 |
8,572 |
(39.3%) |
|
International |
80 |
382 |
(79.2%) |
1,176 |
2,045 |
(42.5%) |
|
Total |
585 |
1,877 |
(68.9%) |
6,382 |
10,617 |
(39.9%) |
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.