Volaris reports September 2023 traffic results

Volaris the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central, and South America, reports its September 2023 preliminary traffic results.

In September 2023, Volaris’ capacity (measured in ASMs) increased by 7.5% year-over-year, while demand (measured in RPMs) increased by 3.1%; the result was a load factor decrease of 3.6 pp YoY to 83.8%. Volaris transported 2.5 million passengers during the month, a 0.6% decrease compared to September 2022. Demand (measured in RPMs) in the Mexican domestic market decreased by 4.6%, while in the international market, demand increased by 22.4%.

During the third quarter of 2023, the average economic fuel cost was $3.16 per gallon, an increase of 17% compared to the second quarter of 2023.

Volaris successfully completes Ps. $1.5 billion Asset-Backed Trust Notes Offering

Volaris, the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central, and South America, has successfully concluded the issuance of 15 million asset-backed trust notes an Mexico under the ticker VOLARCB 23, totalling Ps. $1.5 billion.

This is the third offering under the program authorized by the Mexican National Banking and Securities Commission for an amount of up to Ps. $5.0 billion.

These Trust Notes are backed by future collection rights under agreements entered with credit card processors for the sale of airline tickets and other related services through VISA and Mastercard credit cards, through our internet portal, travel agencies, call centres and sales offices.

The Trust Notes were rated "HR AA+ (E)" and "AA+/M(e)" by the rating agencies HR Ratings de México, S.A. de C.V. and Verum Calificadora de Valores, S.A.P.I. de C.V., respectively, and have a five-year maturity term and carry an interest rate of 28-day TIIE (interbank rate) + 215 basis points.

This communication does not constitute an offer to sell or an offer to purchase, nor shall there be or give rise to the possibility of any sale of the Trust Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration under the laws governing financial instruments in such jurisdiction.

Volaris has disclosed 25 A321neo from a purchase agreement signed in October 2022.

Mexican ultra-low-cost airline and all-Airbus operator Volaris has disclosed 25 A321neo from a purchase agreement signed in October 2022. 

These aircraft bring Volaris total backlog to 143 A320neo Family aircraft, which will support the airline’s continuous fleet renewal and expansion, powered by Pratt & Whitney engines.

“These A321neos will support our long-term business viability and sustainability strategy while moving us closer to operating an all-NEO fleet by 2028. Our 143 aircraft backlog demonstrates Volaris financial strength and will guarantee our growth in the Mexican market as well as in routes to the United States and Central America," said Enrique Beltranena, Volaris President and Chief Executive Officer.

“The A321neo’s superior performance and efficiency will continue to drive Volaris’ network growth. As the fleet grows the airline will be well-positioned to meet future demand, especially in the Mexican leisure market. We look forward to working closely with Volaris as it continues to spread its wings," said Christian Scherer, Chief Commercial Officer and Head of Airbus International.

The A321neo is the largest-fuselage member of Airbus’ best-selling single-aisle A320 Family. The A321neo allows operators to cover the entire market while offering the lowest seat-mile cost of any single-aisle available.

Volaris became an Airbus customer in 2006, and since then the airline has ordered 206 A320 Family aircraft, including more than 170 A320neo Family aircraft. Volaris is the largest A320neo Family operator in Latin America.

Airbus has sold over 1,150 aircraft in Latin America and the Caribbean. More than 750 are in operation throughout the region, with another 500 in the order backlog, representing a market share of nearly 60% of in-service passenger aircraft. Since 1994, Airbus has secured 75% of net orders in the region.

Volaris gets a brand new Airbus A321neo featuring Cabin Flex

Leasing giant CDB Aviation, part of the China Development Bank Financial Leasing Co. has confirmed the delivery of the first of two Airbus A321neo aircraft fitted with Airbus’ Cabin Flex  (“A321NX”) to its long-standing customer, the leading Latin American airline Volaris.

This delivery is part of the lease agreements signed with the airline in 2021, which includes 13 aircraft. CDB Aviation expects to deliver the second A321NX by the end of 2023, with an additional three A321neos and two A320neos slated for delivery throughout 2023 and 2024.

“We’re thrilled to be celebrating with the Volaris team this inaugural delivery of a GTF-powered A321NX from our orderbook,” said Luís da Silva, CDB Aviation’s Head of Commercial, Americas. “With the latest technologies that improve efficiency and sustainability, this aircraft is ideally suited to expand the reach of Volaris’ market-dominant domestic brand to markets in North and Latin America.”

“We appreciate the ongoing partnership with our colleagues at CDB Aviation in meeting the needs of our fleet renewal strategy that will ensure our airline’s sustainable growth in the long term,” commented Holger Blankenstein, Volaris’ Executive Vice President. “With one of the youngest, most fuel-efficient fleets in the Americas, our team remains committed to bringing the region’s passengers the best flying experience and the most modern technology aircraft.”

Volaris does new sale and leaseback deal on five Airbus planes with CDB Aviation

Volaris an ultra-low-cost carrier from Mexico operating point-to-point flights across Mexico, the United States and Central America has done a new sale and leaseback deal on five Airbus Aircraft, comprising of two A320neos and three A321neos with China Development Bank Financial Leasing Company subsidiary CDB Aviation.

The new agreement brings the number of CDB Aviation aircraft on lease to Volaris to a total of thirteen aircraft, which were secured through the lessor’s order book with Airbus, as well as Sale and Leaseback transactions with and without Pre-Delivery Payments. Four of the aircraft were already delivered and the further nine will be delivered by the fourth quarter of 2024.

“We are thrilled to be deepening our ongoing collaboration with the Volaris team in support of efforts to bolster their leadership position in the Mexican domestic market and execute on an aggressive strategy of growth and strong operational performance,” asserted Luís da Silva, CDB Aviation Head of Commercial, Americas.

“With one of the youngest, most fuel-efficient fleets in America, and alongside partners at CDB Aviation, we reinforce our ESG strategy to ensure sustainable growth in the long term. These deliveries will also bring our clients the best flying experience in the most modern technology aircraft,” said Enrique Beltranena, Volaris’ President and Chief Executive Officer.

Peter Goodman, CDB Aviation’s Chief Marketing Officer, concluded: “CDB Aviation is well-positioned to provide airlines with access to an established fleet of varied new and used aircraft types as well as wide-ranging and innovative financing solutions, anchored with the platform’s robust ability to expediently secure aircraft placements through SLB and PDP transactions.”

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Massive Airbus order for Indigo Partners portfolio of airlines - 255 A321neo family aircraft

Indigo Partners, the private equity fund focused on worldwide investments in air transportation and based in Phoenix, Arizona has confirmed a massive order for its airlines from European planemaker Airbus.

Jointly, the airlines will order an additional 255 Airbus A321neo family of aircraft in a special deal that was inked at the Dubai Airshow. With this new commitment,  the total number of aircraft ordered by the Indigo Partners’ airlines will climb to 1,145.

Wizz Air: 102 aircraft (75 A321neo + 27 A321XLR)

Frontier: 91 aircraft (A321neo)

Volaris: 39 aircraft (A321neo)

JetSMART: 23 aircraft (21 A321neo + 2 A321XLR)

In addition to this order, Volaris and JetSMART will upconvert 38 A320neo to A321neo from their existing aircraft backlogs.

“This order reaffirms our portfolio airlines’ commitment to consistent growth through the next decade. The Airbus A321neo and A321XLR have industry-leading efficiency, low unit costs and a substantially reduced carbon footprint relative to prior models. With these aircraft, Wizz, Frontier, Volaris and JetSMART will continue to offer low fares, stimulate the markets they serve and improve their industry-leading sustainability profile,” said Bill Franke, Managing Partner of Indigo Partners.

“We are happy to further expand our relationship with our great Indigo Partners’ airlines Wizz, Frontier, Volaris and JetSMART who have acted fast and decisively over the last few months to position themselves for this landmark order as the effect of the pandemic recedes and the world wants more sustainable flying,” said Christian Scherer, Airbus Chief Commercial Officer and Head of Airbus International.

The A321neo incorporates new generation engines and Sharklets, which together deliver more than 25 percent fuel and CO 2 savings, as well as a 50 percent noise reduction. The A321XLR version provides a further range extension to 4,700nm. This gives the A321XLR a flight time of up to 11 hours, with passengers benefitting throughout the trip from Airbus’ award-winning Airspace interior, which brings the latest cabin technology to the A320 Family.

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CDB Aviation buy four Airbus A320neo from Volaris and lease them back.

CDB Aviation announced the signing of a new agreement with Mexico’s number one airline, Volaris, for the sale and leaseback of four new Airbus A320neo aircraft.

The aircraft, two of which are scheduled to deliver to Volaris by October 2021, with the remaining two expected to arrive by May 2022, are leased on a long-term basis, bringing the total of CDB Aviation aircraft on lease to the carrier to 6.

Luís da Silva, CDB Aviation Head of Commercial, Americas, said: “We are very pleased to offer tremendous value to our existing customer, Volaris, by leveraging the financial strength of our balance sheet and platform’s ability to move quickly in today’s demanding market conditions.”

The neos will support the optimization of the carrier’s fleet plan as it targets to reinforce its low-unit cost operating model to meet post-COVID-19 traffic requirements in alignment with the company’s sustainability strategy.

“Volaris will continue an aggressive strategy on growth and strong operational performance. Therefore, our fleet expansion is one of the main pillars of our ultra-low-cost model and will help us reinforce both local and international presence in all the markets we serve,” said Holger Blankenstein, Volaris’ Executive Vice President.

Aviation Capital Group deliver second A320neo to Volaris

Aviation Capital Group, one of the global leaders in aircraft asset management have confirmed the delivery of a new Airbus A320neo aircraft on a long-term lease to Volaris. 

This aircraft, featuring Pratt & Whitney PW1100G-JM engines and is the second A320neo ACG has delivered to Volaris as part of a multi-aircraft transaction between ACG and the airline.

Aviation Capital Group was founded in 1989 and is one of the world’s premier full-service aircraft asset managers with approximately 400 owned, managed and committed aircraft as of March 31, 2021, which are leased to approximately 85 airlines in approximately 40 countries. ACG is a wholly-owned subsidiary of Tokyo Century Corporation.

Volaris, is an ultra-low-cost airline with flights throughout Mexico, the US, Costa Rica, Guatemala, and El Salvador. Volaris offers low-cost airline tickets to develop the market, offering Customers high-quality service and a wide range of products.

Four New Airbus A320neo aircraft for Volaris

Air Lease Corporation announced long-term lease placements for four new Airbus A320neo aircraft with Volaris (Mexico). Two of the aircraft are from ALC’s order book with Airbus and two are from sale-leasebacks acquired from a third party by one of our management vehicles. The four new A320neos are set to deliver during the remainder of Q2. 

“ALC is pleased to further expand its relationship with Volaris, Mexico’s largest airline,” said John L. Plueger, Chief Executive Officer and President of Air Lease Corporation. “These aircraft will play a key role in satisfying the strong summer traffic demand that Volaris is forecasting. Further, these transactions illustrate another successful pairing of a sale-leaseback under our management business combined with direct placements from ALC’s order book.”

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Airbus Foundation, Viva Aerobus and Volaris support COVID-19 relief efforts in Mexico

Airbus Foundation, Viva Aerobus and Volaris support COVID-19 relief efforts in Mexico

The Airbus Foundation, in collaboration with Aviation Sans Frontières and Mexican airlines Viva Aerobus and Volaris, have joined forces to transport and donate 336,000 surgical masks and 6,560 face shields to the Mexican Red Cross. The highly- demanded Personal Protection Equipment (PPE) will help support Mexico’s ongoing fight against COVID-19 in Mexico. 

The Airbus Foundation, Viva Aerobus and Aviation Sans Frontières, will transport surgical masks to be donated to the Red Cross in the Mexican state of Nuevo León. Volaris, the Airbus Foundation and Aviation Sans Frontières will transport surgical masks and face shields to be donated to the Mexican Red Cross in Mexico City. Both airlines will leverage their latest A320neo deliveries originating from Airbus global headquarters in Toulouse. 

Volaris Reports Second Quarter 2019 Results

Volaris the ultra-low-cost airline serving Mexico, the United States and Central America, today announced its financial results for the second quarter of 2019.

The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS).

Second Quarter 2019 Highlights

Total operating revenues were Ps.8,329 million for the second quarter, an increase of 33.7% year over year.
Total ancillary revenues were Ps.2,909 million for the second quarter, an increase of 38.9% year over year. Total ancillary revenues per passenger for the second quarter reached Ps.514, an increase of 10.3% year over year. Total ancillary revenues represented 34.9% of the total operating revenues for the second quarter 2019, increasing 1.3 percentage points with respect to the same period of last year.
Total operating revenues per available seat mile (TRASM) were Ps.135.5 cents for the second quarter, an increase of 10.1% year over year.
Operating expenses per available seat mile (CASM) were Ps.124.9 cents for the second quarter, a decrease of 1.2% year over year; with an average economic fuel cost per gallon of Ps.48.9 for the second quarter, an increase of 8.0% year over year.
Operating expenses excluding fuel, per available seat mile (CASM ex-fuel) reached Ps.74.5 cents for the second quarter, a decrease of 4.6% year over year.
Operating income was Ps.659 million for the second quarter, an improvement compared with the operating loss of Ps.163 million for the same period of last year. Operating margin for the second quarter was 7.9%, an improvement in margin of 10.5 percentage points year over year.
Net income was Ps.119 million (Ps.0.12 per share / US$0.06 per ADS), with a net margin of 1.4% for the second quarter.
At the close of the second quarter, the Mexican peso appreciated 1.1% against the U.S. dollar with respect to the exchange rate at the close of the previous quarter (Ps.19.38 per US dollar). The Company booked a foreign exchange gain of Ps.3 million as a consequence of our U.S. dollar net monetary liability position, as result of the adoption of IFRS16.
Net cash flows provided by operating activities and investing activities were Ps.1,527 million and Ps.171 million, respectively. The cash flow used in financing activities was Ps.571 million, which included Ps.1,582 million of aircraft rental payments, and inflows of Ps.1,500 million, related to the issuance of asset backed trust notes (certificados bursátiles fiduciarios). The negative net foreign exchange difference was Ps.74 million, with net cash generation in the second quarter of Ps.1,053 million. As of June 30, 2019, cash and cash equivalents were Ps.8,124 million.

Volaris saw passenger numbers rise by more than 14% during December and 12% up over the whole of 2018

The ultra-low-cost airline serving Mexico, the United States and Central America, Volaris has released details of its December and 2018 full year preliminary traffic results today.

During December the airlines total capacity, as measured in Available Seat Miles (ASMs) increased by 6.4% and for the year it was up 11.4% on 2017 figures. Total demand, as measured in Revenue Passenger Miles (RPMs), for December and full year 2018 increased 13.5% and 11.5% year over year, respectively. Volaris transported a total of 1.7 million passengers during the month of December, an increase of 14.7% year over year. Full year 2018, Volaris transported a total of 18.4 million passengers, an increase of 12.0% year over year. Network load factor for December and full year 2018 were 85.8% and 84.5%, respectively.

Mexico's Volaris issues latest results

The leading ultra-low-cost airline serving Mexico, the United States and Central America, Volaris has issued its latest figures for November 2018 and the year-to-date. 

During November 2018 Volaris increased total capacity, as measured in Available Seat Miles (ASMs), by 11.3% year over year. Total demand, as measured in Revenue Passenger Miles (RPMs), in November 2018 increased 17.1% year over year, reaching 1.6 billion. Volaris transported a total of 1.6 million passengers during the month, an increase of 16.6% year over year. Network load factor for November was 88.3%, an increase of 4.4 percentage points year over year. During November 2018, Volaris started to operate 12 domestic routes, from its focus cities Mexico City, Bajio and Guadalajara. Additionally, Volaris started to operate three international routes, two from Bajio to Sacramento and San Jose, California and one from Guadalajara to Albuquerque, New Mexico.

Volaris' President and Chief Executive Officer, Enrique Beltranena, commented: "Passenger demand continues to be solid for Volaris. We hit a record number of passengers transported during the month, positioning the airline as the domestic market leader during 2018". 

Volaris reports impressive growth for October 2018.

Volaris, the ultra-low-cost airline serving Mexico, the United States and Central America has reported impressive passenger growth figures for October 2018 of 21% this week.

The airline increased total capacity, as measured in Available Seat Miles (ASMs), by 19.1% year over year and total demand, as measured in Revenue Passenger Miles (RPMs), in October 2018 increased 21.2% year over year, reaching 1.5 billion. 

In total Volaris transported a total of 1.6 million passengers during the month, that's a massive increase of 21.5% over the same period last year. Network load factor for October was 85.4%, an increase of 1.5 percentage points year over year. 

Volaris Reports Third Quarter 2018 Results

Volaris one of the leading ultra-low-cost airlines serving Mexico, the United States and Central America, today announced its financial results for the third quarter 2018 this week.

Volaris sees a 17% growth in passenger numbers.

The leading ultra-low-cost airline serving Mexico, Central America and the US, Volaris has released its latest figures for the year and for the month of September, earlier this week.

Volaris' Chief Executive Officer, Enrique Beltranena, commented: "International load factors were high on the northbound but low on the southbound flights, responding to the seasonality of the VFR traffic. In addition, domestic traffic positively responded in volume despite relatively high ASM growth. This capacity growth reflects the arrival of the Airbus neos. As a general outlook, unit revenues continue the recuperation trend observed in previous months."

According to the latest figures, Volaris increased total capacity, as measured in Available Seat Miles (ASMs), by 17.0% year over year during September. Total demand, as measured in Revenue Passenger Miles (RPMs), in September 2018 increased 15.3% year over year, reaching 1.4 billion. Volaris transported a total of 1.4 million passengers during the month, an increase of 17.0% year over year. Network load factor for September was 81.3%, a decrease of 1.1 percentage points year over year. During September 2018, Volaris launched one domestic route Guadalajara, Jalisco to Tapachula, Chiapas.

Volaris passenger numbers up for August

The ultra-low-cost airline serving Mexico, Central America and the US, Volaris has reported its latest figures both for the Month of August and the year to date. 

Volaris transported a total of 1.5 million passengers during August, which is a 10.2% more than it did in the same month last year. The carrier achieved an 80.3% load factor over the month, down by around 5.1% on last years number.  However,  Revenue Passenger Miles (RPMs), in August 2018 increased 7.8% year over year. 

1.7 million people took a Volaris flight in July

The ultra-low-cost airline serving Mexico, the United States and Central America, Volaris has issued its report into its July 2018 and year-to-date preliminary traffic results this week.

The airline demonstrated its expansion programme during July, announcing 11 domestic routes from Tijuana, Guadalajara, Mexico City, and Bajio. Additionally, Volaris announced three international routes, two from Bajio to Sacramento and San Jose, California and one from Guadalajara to Charlotte, North Carolina.

Volaris release its second quarter figures

Volaris, the ultra-low-cost airline serving Mexico, the United States and Central America, today announced its financial results for the second quarter 2018.

Volaris June numbers out

Volaris the ultra-low-cost airline serving Mexico, the United States and Central America, reports June 2018 and year-to-date preliminary traffic results.