The rise in fuel costs is one of the main challenges that airlines around the world are dealing with, Volaris among them. According to its financial report for the second quarter, sent to the Mexican Stock Exchange, the airline observed an average increase of 107% in this input , up to 4.4 dollars per gallon. This raised its total operating costs 61% to $710 million during the period.
Due to this inflationary phenomenon in one of its key inputs, Volaris recorded a net loss of 49 million dollars during the second quarter of this year, which contrasts with the profit of 77 million dollars observed in the same period of 2021.
“During the quarter, the company passed on a fraction of the rise in fuel prices through fare increases or, in certain cases, reassigned flights to more profitable routes, keeping non-fuel costs under control,” Enrique added in the report. Beltranena, CEO and CEO of Volaris.
Total net operating expenses (CASM), divided by miles per available seat, resulted in a total of 8.5 cents, which meant an increase of 35% compared to the same period in 2021.
The impact of the rise in fuel prices is such that Volaris estimated that, without counting said increase, its CASM is 1.2% lower compared to the second quarter of 2021, placing it at 4.2 cents.
Volaris transports 20% more passengers and buys nine planes
In the second quarter, the company transported 7.5 million passengers, which meant an increase of 20%. International travelers increased 22%, while international travelers 14%.
In this period, the airline incorporated nine new A320 neo aircraft to its fleet , to add a fleet of 113 aircraft. He stressed that among his plans is that by the end of the year, his fleet will end with 115 units, that is, he will add two more planes.
This meant that its total capacity, in terms of available seat miles, increased 19%, reaching 8.4 billion.
At the end of the second quarter, the airline’s load factor reached 85.6%, which meant a decrease of 1% compared to the same period in 2019.
“At Volaris we have always been disciplined in adding capacity to meet passenger demand and have shown flexibility in adapting capacity (…) We continue with our disciplined growth strategy and will continue to be agile and responsive to market conditions in recent months. ”, asserted Beltranena.
