Aviation Capital Group has confirmed the delivery of one new Airbus A321neo aircraft on long-term lease to Volaris. Powered by the ultra-efficient Pratt & Whitney GTF engines, this is the first of four aircraft scheduled to deliver to the airline as part of a multiple-aircraft sale-leaseback transaction between ACG and Volaris.
Aviation Capital Group is one of the world’s premier full-service aircraft asset managers with over 490 owned, managed and committed aircraft as of September 30, 2023, leased to roughly 90 airlines in approximately 45 countries. It was founded in 1989 and is a wholly owned subsidiary of Tokyo Century Corporation.
Volaris, the low-cost airline recently released details of its third quarter results which a 10% increase on total operating revenues of $848 million, with available seat miles up 8.2% to 10.1 billion. Net loss of $39 million with EBITDAR of $207 million.
Enrique Beltranena, President and chief Executive Officer, said: “Volaris' performance in the third quarter showed resilience, resulting in revenue growth. This growth was mainly due to increased passenger volumes and record-high ancillary revenue per passenger. We achieved this by maintaining strong cost control, especially when it came to non-fuel expenses.
Despite facing challenges related to Pratt & Whitney's GTF preventive accelerated inspections, Volaris is fully committed to ensuring the safety, financial stability, and long-term success of our airline. We are actively addressing the global issue of engine inspections affecting multiple airlines and are working closely with Pratt & Whitney to obtain the necessary technical support and financial compensation for the affected engines.
We’ve developed a mitigation plan to partially offset the impact. Our focus for 2024 is to maximize unit revenues and margins while optimizing our network to the best extent possible given the current environment.”
