UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of January 2024
Commission File Number: 001-36059
Controladora Vuela Compañía de Aviación,
S.A.B. de C.V.
(Name of Registrant)
Av. Antonio Dovalí Jaime No. 70, 13 Floor,
Tower B
Colonia Zedec Santa Fe
United Mexican States, Mexico City 01210
+(52) 55-5261-6400
(Address of principal executive offices)
Indicate by check mark whether
the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form
20-F ☒ Form
40-F ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
EXPLANATORY NOTE
On January 11, 2024, Controladora Vuela Compañía de Aviación,
S.A.B. de C.V. (NYSE: VLRS) issued a press release titled “Volaris First Quarter and Full Year 2024 Guidance”. A copy of this
press release is attached to this Form 6-K as Exhibit 99.1
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
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Controladora Vuela Compañía de Aviación, S.A.B. de C.V.
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Date: January 11, 2024 |
By: |
/s/ Enrique J. Beltranena Mejicano |
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Name: |
Enrique J. Beltranena Mejicano |
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Title: |
Chief Executive Officer |
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By: |
/s/ Jaime E. Pous Fernández |
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Name: |
Jaime E. Pous Fernández |
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Title: |
Chief Financial Officer |
EXHIBIT INDEX
Volaris First Quarter and
Full Year 2024 Guidance
Mexico City, Mexico, January 11, 2024 –
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE: VLRS and BMV: VOLAR) (“Volaris” or “the
Company”), the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central, and South America, today announced its
guidance for the first quarter and full year 2024.
For 2024, Volaris remains focused on executing its
business plan to serve robust demand in its domestic and international markets and drive profitable growth despite constraints due to
accelerated GTF engine preventive inspections. The Company’s priorities for the year are: (i) ensuring the safety of our ambassadors
and customers, (ii) driving profitability, and (iii) optimizing network reliability.
Additionally, we maintain the 2023 guidance provided
to the market on October 10, 2023.
For the first quarter of 2024, the Company expects:
|
1Q’24 |
1Q’23 (1) |
1Q’24 Guidance |
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ASM growth (YoY) |
-16% to -18% |
+17.7% |
TRASM |
$8.5 to $8.7 cents |
$7.71 cents |
CASM ex fuel |
$5.5 to $5.7 cents |
$4.65 cents |
EBITDAR margin |
25% to 27% |
16.8% |
Average USD/MXN rate |
Ps. $17.00 to $17.20 |
Ps. 18.70 |
Average U.S. Gulf Coast jet fuel price |
$2.55 to $2.65 |
$3.06 |
(1) For convenience purposes, actual
reported figures for 1Q'23 are included.
For the full year 2024, the Company expects:
|
2024 |
2023 (2) |
Full Year Guidance |
|
|
ASM growth (YoY) |
-16% to -18% |
+10% |
EBITDAR margin |
31% to 33% |
~26% |
CAPEX (3) |
~$300 million |
~$300 million |
Average USD/MXN rate |
Ps. $17.70 to $17.90 |
Ps.17.75 |
Average U.S. Gulf Coast jet fuel price |
$2.50 to $2.60 |
$2.80 |
(2) For convenience purposes, 2023 guidance (as disclosed on October
10, 2023) is included.
(3) CAPEX net of financed fleet predelivery payments.
The first quarter and full year 2024 outlook presented
above includes the compensation that Volaris expects to receive for the projected grounded aircraft resulting from the GTF engine removals,
in accordance with the Company’s agreement with Pratt & Whitney that was previously announced on December 5, 2023.
The Company's outlook is subject to unforeseen disruptions,
macroeconomic factors, or other negative impacts that may affect its business, and is based on several assumptions, including the foregoing,
which are subject to change and may be outside the control of the Company and its management. The Company's expectations may change if
actual results vary from these assumptions. There can be no assurances that Volaris will achieve these results.
The information included in this release, including
the Company’s full-year 2023 financial information, has not been audited and reflects the Company’s current estimates based
on information available as of the date of this release. Such information is subject to change as a result of the completion of the Company’s
financial and operating closing procedures, customary audit procedures, and other developments that may occur before the completion of
these procedures. Accordingly, you should not place undue reliance on this preliminary information or guidance, which may differ materially
from actual results. 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.
Investor
Relations Contact
Ricardo
Martínez / ir@volaris.com
Media
Contact
Israel Álvarez
/ ialvarez@gcya.net
About Volaris
*Controladora Vuela Compañía
de Aviación, S.A.B. de C.V. (“Volaris” or “the Company”) (NYSE: VLRS and BMV: VOLAR) is an ultra-low-cost
carrier, with point-to-point operations, serving Mexico, the United States, Central, and South America. Volaris offers low base fares
to build its market, providing quality service and extensive customer choice. Since the beginning of operations in March 2006, Volaris
has increased its routes from 5 to more than 231 and its fleet from 4 to 130 aircraft. Volaris offers more than 550 daily flight segments
on routes that connect 43 cities in Mexico and 28 cities in the United States, Central, and South America, with the youngest fleet in
Mexico. Volaris targets passengers who are visiting friends and relatives, cost-conscious business and leisure travelers in Mexico, the
United States, Central, and South America. Volaris has received the ESR Award for Social Corporate Responsibility for fourteen consecutive
years. For more information, please visit ir.volaris.com. Volaris routinely posts information
that may be important to investors on its investor relations website. The Company encourages investors and potential investors to consult
the Volaris website regularly for important information about Volaris.
Forward-Looking Statements
Statements in this release
contain various forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section
21E of the US Securities Exchange Act of 1934, as amended, which represent the Company's expectations, beliefs, or projections concerning
future events and financial trends affecting the financial condition of our business. When used in this release, the words "expects,"
“intends,” "estimates," “predicts,” "plans," "anticipates," "indicates,"
"believes," "forecast," "guidance," “potential,” "outlook," "may," “continue,”
"will," "should," "seeks," "targets" and similar expressions are intended to identify forward-looking
statements. Similarly, statements describing the Company's objectives, plans or goals, or actions the Company may take in the future are
forward-looking. Forward-looking statements include, without limitation, statements regarding the Company's first quarter and full year
2024 outlook, maintenance of its full year 2023 guidance, expectation to receive certain compensation in connection with the GTF engine
removals and anticipated execution of its business plan and focus on its 2024 priorities. Forward-looking statements should not be read
as a guarantee or assurance of future performance or results. They will not necessarily be accurate indications of the times at or by
which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements
are made and/or management’s good faith belief as of that time concerning future events and are subject to risks and uncertainties
that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.
Forward-looking statements are subject to several factors that could cause the Company's actual results to differ materially from the
Company's expectations, including the competitive environment in the airline industry, the Company's ability to keep costs low; changes
in fuel costs, the impact of worldwide economic conditions on customer travel behavior; the Company's ability to generate non-ticket revenue;
and government regulation. The Company's US Securities and Exchange Commission filings contain additional information concerning these
and other factors. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their
entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date of this release. You should
not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual
results, changes in assumptions, or changes in other factors affecting forward-looking information except to the extent required by applicable
law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect
to those or other forward-looking statements.
Supplemental Information
on Non-GAAP Measures
We evaluate our financial performance
by using various financial measures that are not performance measures under International Financial Reporting Standards (“non-IFRS
measures”). These non-IFRS measures include CASM, CASM ex-fuel, Adjusted CASM ex-fuel, EBITDAR, Net debt-to-LTM EBITDAR, Total cash,
cash equivalents, restricted cash, and short-term investments. We define CASM as total operating expenses by available seat mile. We define
CASM ex-fuel as total operating expenses by available seat mile, excluding fuel expense. We define Adjusted CASM ex fuel as total operating
expenses by available seat mile, excluding fuel expense, aircraft and engine variable lease expenses and sale and lease back gains. We
define EBITDAR as earnings before interest, income tax, depreciation and amortization, depreciation of right of use assets and aircraft
and engine variable lease expenses. We define Net debt-to-LTM EBITDAR as Net debt divided by LTM EBITDAR. We define Total cash, cash equivalents,
restricted cash, and short-term investments as the sum of cash, cash equivalents, restricted cash, and short-term investments.
These non-IFRS measures are
provided as supplemental information to the financial information presented in this release that is calculated and presented in accordance
with International Financial Reporting Standards (“IFRS”) because we believe that they, in conjunction with the IFRS financial
information, provide useful information to management’s, analysts and investors overall understanding of our operating performance.
Because non-IFRS measures are
not calculated in accordance with IFRS, they should not be considered superior to and are not intended to be considered in isolation or
as a substitute for the related IFRS measures presented in this release and may not be the same as or comparable to
similarly titled measures presented
by other companies due to possible differences in the method of calculation and the items being adjusted.
We encourage investors to review
our financial statements and other filings with the Securities and Exchange Commission in their entirety for additional information regarding
the Company and not to rely on any single financial measure.
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