Volaris (VLRS) updates guidance for the second quarter of 2021

Volaris* (NYSE: VLRS and BMV: VOLAR), the ultra-low-cost airline serving Mexico, the United States and Central America, updates guidance for the second quarter of 2021.

Over the past three weeks the Company has seen a material improvement in sales for both the domestic Mexican market and the transborder US international market. While the recovery from COVID-19 has been difficult to predict and a high level of uncertainty remains, based on current trends the Company is adjusting the guidance it provided during its first quarter 2021 earnings call for the second quarter 2021 as follows:

• Capacity for the second quarter measured in available seat miles (ASMs) is now projected to be in the range of 110% to 113% of 2019 second quarter capacity.
• The Company expects to generate positive cash in the quarter in the range of US$800,000 to US$1,000,000 per day. This is after fully meeting contractual repayment obligations deferred in previous quarters which are now due in this quarter.
• Total operating revenues per available seat mile (TRASM) is now projected to increase between 8% and 10% as compared to the same period of 2019.
• EBITDAR margin for the second quarter is now projected to be in the low to mid-thirty percent range driven by improved TRASM levels.

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