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Volaris Shares 2020 Results, Projects 2021 Performance
In a recent interview with the adn40 newscast, the CEO of Volaris, Enrique Beltranena, said that the Mexican ultra-low-cost airline ended the last quarter of the year operating at 95% of its capacity.
“In Dec. 2020, Volaris reach out to operate at 102% compared to the same month in 2019.
We have started the year with restrictions on entry to the US, so in this first quarter they would be operating up to 85%”, he stated.
Regarding the 2020 financial results, Beltranena indicated that the fourth quarter of 2020 has brought positive results to the airline, and this was able due to the potential of the ultra-low-cost model of Volaris, despite of the circumstances we are experiencing due to the crisis generated by the COVID-19 pandemic.
Then, the Volaris CEO mentioned that the seat/mile cost reclined to practically pre-pandemic levels, at levels of $ 4.13 without fuel, which showed great success derived from the resilience of the company’s variable cost scheme, flexible labor contracts, and of its discipline in managing capital expenditures.
Finally, Beltranena stated that the strength of Volaris’ balance sheet and the ability to not burn cash in the last quarter of 2020 was extraordinary; and, the ability that the Mexican ultra-low-cost carrier had to manage its fleet in a flexible and opportunistic way; and, finally he highlighted the legitimization of labor contracts.
For 2021, Volaris expects to start the first quarter with a decline compared to the last quarter of 2020. The airline expects similar results as the obtained in the 2020 third quarter.
This prediction is based due to the outbreaks of COVID-19 in the region, as well as the new restrictions both on leaving and entering US cities.
However, while vaccination advances, the Mexican ultra-low-cost carrier has seen a recovery in the reservations towards the end of March and beginning of April, so Volaris expects that by early summer they will return to normal levels again.
Beltranena finished his interview stating that Volaris is doing well financially since, at the end of last year, $165 million capital was injected with absolute control of its cash, expenses and financial performance.
Volaris and Viva Aerobus Plan to Begin Operations to Colombia
According to T21, Viva Aerobus requested to the Colombian Government to provide international air transport services for passengers, mail and cargo on the Mexico-Bogotá route, with 7 weekly frequencies, with Airbus A320 and A321 equipment.
While Volaris required the Mexico City-Bogotá routes with 4 weekly frequencies, Mexico City-Medellín with 2 weekly frequencies, as well as Cancún-Bogotá with 3 weekly frequencies and Cancun-Medellín with 2 weekly frequencies, routes that will operate in Airbus equipment A320-233 and Airbus A320-271N.
Meanwhile, Volaris Costa Rica seeks the routes San José-Bogotá-San José with 3 weekly frequencies, and San José-Medellín with 2 weekly frequencies, whose service will be provided with Airbus A319 aircraft.
Currently, Aeroméxico is the only Mexican carrier that flies to Colombia, with destinations to Bogotá, Cali, Medellín and Cartagena.
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