Volaris has released its financial results for the fourth quarter (Q4) and full-year 2024, reporting a net profit of $46 million in Q4, a 58.9% decline compared to the same period in 2023. However, the airline achieved a full-year net profit of $126 million, marking a significant recovery from the previous year.
Despite operational challenges, including engine inspections that grounded several aircraft, Volaris remained profitable and improved key financial indicators.
Q4 2024 Financial Performance
- Net profit: $46 million (-58.9% YoY)
- Total operating revenue: $835 million (-7.1% YoY)
- EBITDAR margin: 39.6%, up 8.4 percentage points YoY
- Available Seat Miles (ASMs): 8.9 billion (-5% YoY)
- Operating expenses: $718 million (86% of revenue)
- Average fuel cost per gallon: $2.51, down 20% YoY
Full-Year 2024 Financial Highlights
- Net profit: $126 million (vs. $8 million in 2023)
- Total operating revenue: $3.14 billion (-3.6% YoY)
- EBITDAR margin: 36.3%, up 11.1 percentage points YoY
- ASMs: 34.0 billion (-12.6% YoY)
- Operating expenses: $2.73 billion (87% of revenue)
- Average fuel cost per gallon: $2.75, down 12% YoY
Engine Challenges Shape 2025 Strategy
In 2024, Volaris faced disruptions due to Pratt & Whitney GTF engine inspections, which left an average of 34 aircraft grounded during Q4. Additionally, Mexican peso depreciation against the U.S. dollar impacted revenues. However, the airline successfully cut costs—particularly in fuel—and maintained a disciplined approach to fleet and lease management. It also expanded its international operations, increasing revenue from foreign currency.
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“2024 was an extraordinary year for Volaris,” said Enrique Beltranena, President & CEO. “Despite ongoing challenges from GTF engine inspections and grounded aircraft, we delivered one of our strongest revenue and profitability performances. Thanks to our leadership team and Ambassadors, we achieved net profitability each quarter and reached an annual EBITDAR margin of 36%.”
Beltranena also acknowledged that engine inspections will continue to affect Volaris’ fleet through 2025, 2026, and 2027. In response, the airline is focusing on three key areas to maximize return on investment:
- Managing unscheduled retirements, inspections, and engine returns
- Coordinating the delivery of new Airbus aircraft
- Optimizing aircraft lease returns and extensions
2025 Outlook: Growth and Efficiency
Volaris’ 2025 strategy prioritizes capacity growth, with an estimated 13% expansion in ASMs. The airline will continue to optimize aircraft deliveries, lease returns, and engine maintenance to sustain its operations.
- Projected EBITDAR margin: 34%–36%
- Estimated exchange rate: MXN 21.00–21.20 per USD
- Expected fuel cost per gallon: $2.15–$2.25
With a disciplined approach to fleet management and financial planning, Volaris aims to navigate operational challenges while maintaining profitability and growth in 2025.
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