EconomyFinancialVolaris closes 2021 with almost 30% more revenue than...

Volaris closes 2021 with almost 30% more revenue than before the pandemic

Volaris closed 2021 with operating income of 44,662 million pesos (mdp) in the annual accumulated, an increase of 29% compared to 2019, and which represents the highest sales in its history. During the fourth quarter of last year, the airline increased its revenues by 43% compared to pre-pandemic levels, results that the company attributes to a continuous recovery in passenger demand coupled with a “disciplined” growth strategy.

However, in its financial report for the fourth quarter of the year sent to the Mexican Stock Exchange (BMV), the airline reported a net loss of 200 million pesos, due to “a single and non-monetary accounting charge” of 2,251 million pesos, related to with the termination of a non-derivative financial instrument “as a result of the change in the functional currency of the company”.

Discounting this payment, Volaris recorded a net profit of 1,559 million pesos in the fourth quarter of the year, an increase of 21% compared to the profits received in the same period of 2019. For the accumulated annual, the airline reported a net profit of 2,121 mdp even taking into account the accounting charge paid. With this, it registered an operating flow of 5,161 million pesos in the fourth quarter and 16,375 million pesos for the entire year, which represented an increase of 53% compared to 2019.

“In 2021, despite the uncertainty in the markets where we operate due to the evolution of the Covid-19 pandemic, we reported solid results,” said Enrique Beltranena, CEO and CEO of Volaris, quoted in the company’s financial report. “This strengthens our team’s ability to adapt to the changing market environment.”

Volaris also registered a growth in the flow of passengers transported of 27% in the fourth quarter and 11% throughout the year, which translated into more than 24.4 million users. Faced with increased demand, the airline increased its capacity –measured by available seat miles, or ASM– by 27% during the quarter and 15% for all of 2021, with which it closed the year with 101 aircraft in its fleet.

Among the projections that the company has for this year, a forecast to increase its fleet to 115 aircraft stands out, 14 more than in 2021. In addition, it expects to have total operating income in a range of 2,600 to 2,800 million dollars, which, in the At best, they would represent an increase of 29% compared to the 2.1 billion dollars received in 2021.

“Going forward, we will continue to focus our efforts on executing our growth strategy, which is focused on serving a growing middle class in Mexico, focusing on the conversion of long-distance bus trips to plane trips, as well as on the growth of our international markets”, added Beltranena in the financial report. “Our strong ultra-low-cost business model best positions us to continue to be successful in those markets.”

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