Mexican low-cost airline Viva Aerobus released its operating and financial results for the first quarter of the year. The airline’s revenues and the volume of its operations increased between January and March, compared to the same period in 2021.
Operating results
- The occupancy factor was 83%, 5.1 percentage points higher than in the same period of 2021.
- The modern fleet, comprising mostly Airbus A320neo and A321neo aircraft, contributed to fuel savings. High-density cabin configurations, with an average of 199 seats per aircraft, helped reduce the operating cost of each flight.
- Two new aircraft were added compared to the previous quarter, both A321neo. Compared to the first quarter of 2021, Viva Aerobus has thirteen additional aircraft: eight A321s and five A321neo. It is one of the most modern fleets in the region: at the end of the quarter, its average age was 5.2 years.
- The company reported a 66% growth in the number of passengers carried, thanks to a recovery in demand in both domestic and international markets. In total, there were 4.2 million passengers. This represents 77% more than in 2019.
- Opening of new routes: Cancun (CUN) – Medellin (MDE), Mexico City (MEX) – Medellin (MDE) and Mexico City (MEX) – Nuevo Laredo (NLD). In addition, Viva Aerobus inaugurated operations at the new Felipe Ángeles International Airport in Mexico City.
Financial Results
- Total revenues increased 104% and unit revenue per passenger rose 27%. The figures were driven by growth in fare and ancillary revenues, despite an 84% increase in fuel prices compared to the first quarter of last year.
- Fare and ancillary revenues per passenger increased 45.2% and 4.6%, respectively. Ancillary revenues accounted for 46.1% of total revenues.
- The company reported having secured financing for its entire firm aircraft order backlog, which ends in 2026, by arranging credit facilities that guarantee this possibility.
- Total operating expenses rose 73.3%, driven by a 61.2% increase in available seats per mile and higher fuel burn, which recorded its highest price since 2008.
- According to the company, it has already covered 11% of the fuel expenses forecast for 2022 and has instruments in place to cope with price variables and mitigate the volatility of the Mexican peso’s exchange rate against the US dollar.
- Operating loss improved 36%, reflecting higher unit revenues and a disciplined approach to expenses. Operating margin improved 19.3 percentage points.
- Net loss increased 13.4%, due to higher interest expense.
«The first quarter results reflect our continued efforts to maintain a disciplined focus on capacity, efficient revenue management initiatives to respond to rapidly changing macroeconomic trends and the flexibility of our ultra-low-cost business model», said Juan Carlos Zuazua, CEO of Viva Aerobus.
See also: March results: Aeroméxico, Viva Aerobus and Volaris
