Volaris reported its financial results for the first quarter of 2023 on Monday. Operating expenses outpaced sales revenues, with the Mexican airline posting a loss of 71 million dollars.
“During the first quarter, demand in all segments and regions remained solid for our company”, said Enrique Beltranena, the company’s CEO. “Volaris has continued to grow profitably in the United States, driven by our strength in cross-border regions and Central America”, he added.
The airline’s main costs (fuel expenses, operating expenses and employee compensation) increased in the first quarter. Beltranena said: “Going forward, the strength of our network, coupled with our tight cost controls, will give us a growing competitive advantage in our markets”.
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Key results of Volaris for the first quarter of 2023 and comparison to the same period in 2022
- Total operating revenue reached 731 million dollars, an increase of 29% compared to the first quarter 2022. According to the company, this is explained by strong demand in the international market and additional revenue per passenger.
- Total revenue, in terms of available seat mile, increased by 9.5% to 7.71 cents.
- Capacity grew by 18%.
- Total operating expenses reached 762 million dollars and represented 104% of operating revenues.
- Operating expense per seat mile was 8.03 cents, 8.2% above January-March of the previous year.
- The average cost per gallon of fuel was 3.46 dollars, an increase of 12%.
- Net cash flow from operating activities was 208 million dollars, while cash outflows from investing and financing activities amounted to 109 million and 110 million, respectively.
- Volaris reported a loss of 71 million dollars, with a loss per share of 0.06 cents.
- The company had cash, cash equivalents and restricted cash of 704 million at the end of the quarter. The figure represents 23% of total operating revenues for the previous twelve months.
- Between January and March, Volaris returned one Airbus A319 and added two new aircraft: one Airbus A320neo and one A321neo.
- The airline ended the quarter with a total of 120 aircraft in operation. The average age of the fleet was 5.4 years as of 31 March, with an average capacity of 193 seats. Volaris plans to end 2023 with 125 airplanes in service.
