Mexican ultra-low-cost carrier Volaris, an airline serving Mexico, the United States, Central and South America, has reported its November 2023 preliminary traffic results.
November Performance Overview
ASM and RPM Metrics
In November 2023, Volaris experienced a 2.2% year-over-year decrease in ASM (Available Seat Miles) capacity.
Simultaneously, RPMs (Revenue Passenger Miles) decreased marginally by 0.2%. The result? A notable 1.8 percentage point increase in load factor, reaching an impressive 89.8%.
Passenger Movement
Despite a slight dip in overall passenger numbers, with a 0.9% decrease compared to November 2022, Volaris remained a key player by transporting 2.7 million passengers during the month.
Domestic vs. International Trends
Unraveling the geographical intricacies, the Mexican domestic RPMs experienced a 7.9% decrease. In contrast, international RPMs soared, marking a significant 17.6% increase.
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Insights from Volaris’ Leadership
Enrique Beltranena, Volaris’ President and CEO, sheds light on the strategic decisions made in response to challenges faced in November. Notably, a reduction in Pratt & Whitney (“P&W”) engine availability prompted a recalibration of domestic ASMs.
This move was complemented by a shrewd redeployment of capacity to the US market, leveraging Category 1 opportunities.
Beltranena explains, “This strategic approach successfully aligned with positive demand, consistent with our full-year expectations.”
Looking into the future, Volaris has inked a noteworthy agreement with P&W. This agreement outlines compensation for each GTF engine removed from the fleet.
The purpose is clear: to address fixed costs associated with engine inspections. This strategic move complements the mitigation initiatives highlighted in Volaris’ recent earnings call.
Volaris: A Brief Overview
About Volaris
Controladora Vuela Compañía de Aviación, S.A.B. de C.V., known as Volaris, operates as an ultra-low-cost carrier with point-to-point operations.
Serving Mexico, the United States, Central, and South America, Volaris distinguishes itself through low base fares, quality service, and extensive customer choice.
Operational Evolution
Since its inception in March 2006, Volaris has charted an impressive trajectory. The airline has expanded its routes from 5 to more than 231, boasting a fleet growth from 4 to 128 aircraft.
Today, the airline offers over 550 daily flight segments, connecting 43 cities in Mexico and 28 cities in the United States, Central, and South America. Notably, it maintains the youngest fleet in Mexico.
Target Audience
Volaris strategically targets a diverse audience, including passengers visiting friends and relatives, cost-conscious business travelers, and leisure seekers in Mexico, the United States, Central, and South America.
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