Volaris (NYSE: VLRS), the leading Mexican ultra-low-cost carrier (ULCC) has announced its preliminary traffic results for May 2024.
Overall, the carrier maintained a strong load factor performance, despite a capacity decrease. The airline currently serves routes across Mexico, the United States, Central, and South America,
Positive Outcome Despite Headwinds
While overall available seat miles (ASM) capacity decreased by 17.5% year-over-year due to accelerated Pratt & Whitney engine inspections and temporary groundings, Volaris achieved a positive outcome.
The airline successfully optimized its network, resulting in a 1.6 percentage point increase in load factor to a commendable 86.1%.
This indicates that despite reduced capacity, Volaris filled a higher proportion of available seats compared to May 2023.
The impact on revenue passenger miles (RPMs) was also minimized, with a decrease lower than the capacity reduction.
Mexican domestic RPMs saw a 22.0% decline, while international RPMs decreased by 3.6%. Volaris still managed to transport a total of 2.4 million passengers in May.
Volaris CEO Comments
“Our ability to adjust and optimize our network effectively has been instrumental in mitigating the limitations caused by temporary fleet availability,” stated Enrique Beltranena, President and CEO of Volaris.
“We’ve strategically focused on increasing capacity in the high-demand U.S.-Mexico transborder market while maximizing efficiency across our entire network.”
Beltranena further highlighted the growing importance of the international market, which now accounts for over 40% of Volaris’ total capacity.
This strategic shift allows the airline to benefit from generating revenue in US dollars. Additionally, adjustments made to the domestic network are showing promising signs.
The carrier saw booking trends for the remaining second quarter exceeding expectations and indicating strong performance.
Recent Codeshare with Iberia
This month has seen the firming of a code share agreement between Volaris and European carrier Iberia. This further boosts connectivity between Europe and Mexico, with European travellers benefiting from access to 25 destinations through Mexico operated by Polaris.
Mexico remains one of Iberia’s major international markets, and there will be a reciprocal benefit for Mexican travellers to Europe.
About Volaris
Volaris is a leading ultra-low-cost carrier operating on a point-to-point model, serving destinations throughout Mexico, the United States, Central, and South America.
The airline offers competitive base fares, allowing for a broader customer base while maintaining high-quality service and extensive route options.
Since its inception in March 2006, Volaris has grown significantly. The number of routes has expanded from just 5 to over 197, and the fleet has increased from 4 aircraft to a substantial 134.
Today, Volaris boasts over 460 daily flight segments, connecting 44 cities in Mexico with 29 destinations across the United States, Central, and South America.
Notably, Volaris maintains one of the youngest fleets in Mexico.
The airline primarily targets passengers visiting friends and relatives, along with cost-conscious business and leisure travelers within its expansive network.
Volaris’ commitment to social responsibility is reflected in its achievement of the ESR Award for Corporate Social Responsibility for an impressive fifteen consecutive years.
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