Stock News Summary: Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE: VLRS)

Volaris * (VLRS) just recently reveals its monetary outcomes for the third quarter 2019.

On 01 Nov 2019, Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (NYSE: VLRS) witnessed a gain of 0.09% in current trading duration with closing price of $10.85. In the routing 12 months period, return on possessions ratio of the Company was 18.90% and return on equity ratio was 42.90% while its return on investment ratio was -1.40%.

3rd Quarter 2019 Highlights

Overall running incomes were Ps.9,502 M for the 3rd quarter, a raise of 29.9% year over year.
Total supplementary profits were Ps.3,030 M for the 3rd quarter, a raise of 36.4% year over year. Overall ancillary revenues per passenger for the 3rd quarter reached Ps.539, a raise of 13.6% year over year. Total supplementary revenues represented 31.9% of overall operating revenues for the third quarter 2019, increasing 1.5 portion points with regard to the exact same duration of in 2015.
Overall operating earnings per available seat mile (TRASM) were Ps.150.3 cents for the third quarter, a raise of 11.4% year over year.
Business expenses per accessible seat mile (CASM) were Ps.123.4 cents for the 3rd quarter, a decline of 0.3% year over year; with a typical financial fuel cost per gallon of Ps.44.9 for the 3rd quarter, a raise of 3.2% year over year.
Operating costs not consisting of fuel, per accessible seat mile (CASM ex-fuel) reached Ps.77.5 cents for the third quarter, a raise of 2.9% year over year.
Running earnings was Ps.1,703 M for the 3rd quarter, a crucial boost contrast with the operating earnings of Ps.601 M for the same duration of last year. Operating margin for the 3rd quarter was 17.9%, an enhancement in margin of 9.7 portion points year over year.
Earnings was Ps.713 M (Ps.0.70 per share/ US$ 0.36 per ADS), for a net margin of 7.5% for the third quarter.
At the close of the third quarter, the Mexican peso diminished 2.4% against the U.S. dollar with respect to the exchange rate at the close of the previous quarter (Ps.19.17 per US dollar). The Company scheduled a forex loss of Ps.173 M derived from our U.S. dollar net monetary liability position, as outcome of the adoption of IFRS16.
The net money flows utilized in funding activities were Ps.1,606, which consisted of Ps.1,657 M of aircraft rental payments. The positive net foreign exchange difference was Ps.156 M, with net money utilized in the third quarter of Ps.314 M.

CASM and CASM ex-fuel for the third quarter of 2019 reached Ps.123.4 (US$ 6.4 cents) and Ps.77.5 cents ( US$ 4.0), respectively. This represented a reduction of 0.3% and a raise of 2.9%, respectively, year over year; generally driven by cost control discipline and the typical currency exchange rate devaluation of 2.3%.

Young and Fuel-efficient Fleet

During the third quarter of 2019, the Company integrated two airplane (A320 neo) to its fleet. As of September 30, 2019, Volaris fleet was composed of 80 airplane (8 A319s, 57 A320s and 15 A321s), with a typical age of 4.9 years. At the end of the third quarter of 2019, Volaris fleet had approximately 186 seats, 76% of which were in sharklet-equipped aircraft, and 24% were NEO.

Solid Balance Sheet and Good Liquidity

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The favorable net foreign exchange distinction was Ps.156 M, while the net money used in the third quarter was Ps.314 M. As of September 30, 2019, cash and cash equivalents were Ps.7,810 M, representing 23.7% of last twelve months of the operating revenue. Volaris signed up an unfavorable net debt (or a favorable net money position) of Ps.3,533 M (not consisting of lease liability acknowledged under the IFRS16 adoption) and overall equity of Ps.4,144 M.

Overall supplementary incomes were Ps.3,030 M for the 3rd quarter, a raise of 36.4% year over year. Total supplementary profits per passenger for the third quarter reached Ps.539, a raise of 13.6% year over year. Overall secondary revenues represented 31.9% of overall operating profits for the 3rd quarter 2019, increasing 1.5 percentage points with respect to the very same period of last year.
At the end of the third quarter of 2019, Volaris fleet had an average of 186 seats, 76% of which were in sharklet-equipped aircraft, and 24% were NEO.

In the trailing 12 months period, return on possessions ratio of the Company was 18.90% and return on equity ratio was 42.90% while its return on financial investment ratio was -1.40%.

The company included at 2.75% in previous week and climbed up with 6.79% in one month. Throughout the previous three-month period the stock surged of 23.86% and increased at 9.60% in previous 6 month while year to date performance of 102.80%.

Marlon Lopez

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