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A VivaAerobus A320 in Las Vegas (Photo: AirlineGeeks | William Derrickson)

Viva Aerobus Reports Positive 4th Quarter Results, Aims for Increased Growth

Viva Aerobus reported its operating and financial results for the 2020’s fourth quarter and its annual 2020 results, reflecting a positive trend in the airline’s efforts to increase flights to meet the needs of its growing customer base.

According to the airline’s press release, Viva Aerobus’ leadership team attributes the positive performance to adequate financial management, a disciplined control of expenses that protects the company’s liquidity and a responsible operational reactivation based on the care of the health and safety of passengers and collaborators.

Reactivating the Industry

During this last period of the 2020, Viva Aerobus maintained a leadership position in the reactivation of the aviation industry by becoming the first airline in the American continent to resume 100% of its operational capacity, an achievement announced in November.

In Nov. 2020, the Mexican ultra-low-cost carrier operated 109 routes: 96 domestic and 13 international. At that time, Viva Aerobus offer the same number of seats registered in Nov. 2019.

Subsequently, it became the first Mexican airline to grow its operational capacity, increasing its offer (seats per kilometer available) by 11% in Dec. 2020 compared to the same month in 2019.

Viva Aerobus ended the calendar year offering service on 131 routes – 12 more routes than at the end of 2019.

As a result of this reactivation, along with greater flexibility by eliminating charges for ticket changes (date, time or route) for the benefit of its passengers, Viva Aerobus registered a higher demand at the end of the last 2020 quarter with more than 2.9 million passengers, an increase of 59% compared to the 2020 third quarter. In Dec. 2020, more than one million passengers were registered, similar reported in the same month in 2019.

Based on this operational and passenger increase, the operating income for the 2020 fourth quarter totalled nearly $158.5 million, an increase of 76.8% compared to the third quarter of 2020.

The Power of Ancillary Revenue

The airline’s total operating income consisted of 49% passenger income (around $77.8 million) and 51% ancillary services revenue (around $80.6 million).

As a result of this sequential increase in revenues, a positive EBITDAR (earnings before interest, taxes, depreciation and rental costs) was achieved for the second consecutive quarter, totalling $26 million.

Viva Aerobus’ liquidity protection stands out with a cash balance and equivalents of around $145.2 million, a figure similar to that reported the previous quarter.

Viva Aerobus has become well known as one of Mexico’s most-flown, ultra-low-cost airlines. Starting operations in 2006, it today operates one of the youngest fleets in the world with 41 A320 aircraft. With a heavy focus on its ultra-low-cost model, Viva Aerobus has continued gaining ground on other airlines in the region.

Juan Pedro Sanchez Zamudio
Juan Pedro Sanchez Zamudio
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