Volaris (NYSE:VLRS) Q2 2020 Earnings Conference Call - Final Transcript
Jul 27, 2020 • 10:00 am ET
Good morning, everyone, and welcome -- and thank you for standing by, and welcome to Volaris' Second Quarter 2020 Financial Results Conference Call. [Operator Instructions] Following the company's prepared commentary, we will open the call for your questions-and-answers. Instructions on how to ask a question will be provided at that time. [Operator Instructions]
At this point, I would now like to turn the call over to Ms. Maria Elena Rodriguez, Volaris' Corporate Finance and Investor Relations Director. Please go ahead, Ms. Rodriguez.
Maria Elena Rodriguez
Good morning, everyone, and thank you for joining the call. With us today is our President and CEO, Enrique Beltranena; our Airline Executive Vice President, Holger Blankenstein; and our Senior Vice President, Chief Financial Officer, Jaime Pous. We will be discussing the company's second quarter 2020 results. Afterwards, we will move on to your questions. Please note that this call is for investors and analysts only. Any questions from the media will be taken on an individual basis.
Before we begin, please let me remind everyone that this call may include forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are subject to several factors that could cause the company's actual results to differ materially from expectations for reasons described in the company's filings with the US Securities and Exchange Commission and the Comision Nacional Bancaria y de Valores. Furthermore, Volaris undertakes no obligation to publicly update or revise any forward-looking statements.
It's now my pleasure to turn the call over to Volaris' President and CEO, Mr. Enrique Beltranena.
Thank you, Maria Elena, and thank you very much for -- everybody for joining us. I hope everyone's healthy. I want to start by giving a special mention to our family of ambassadors and our Board members, who have been fully committed to the company through their service, passion and dedication during this difficult situation, which has certainly proven to be historic.
We have taken the following five core actions to address the impact of COVID-19 in a rigorous way: We, first, diligently managed our liquidity position. Second, we delivered a conservative plan to face the impacts of the COVID-19 with growth flexibility. Third, we achieved a fast recovery in terms of capacity. And fourth, COVID-19 provided opportunity to further reduce costs. Finally, fifth, we implemented safety and health measures.
Let me start by the first one where we diligently managed our liquidity position. Volaris' second quarter cash and cash equivalents position of $436 million is a very similar level to the position at the end of the first quarter despite an 82% year-on-year reduction in revenues -- 82%. The company, given the circumstances, has taken decisive actions to preserve cash and to continue to operate. We have diligently managed our liquidity position by controlling the variable costs and taking an extreme discerning examination toward our fixed costs. The agreement benefit of our liquidity -- the aggregate benefit of our liquidity preservation plan for 2020 is $266 million mostly through payment deferrals with main suppliers, aircraft, engine lessors