Ultra-low-cost carrier Volaris reported that demand climbed by 18% year-on-year in November 2022, with capacity up 19.5%.
The Mexico-based Americas-focused airline said it carried 2.7 million passengers during November, almost 14% more than the same month last year, with international demand up nearly 40% and domestic up 12%.
Enrique Beltranena, Volaris’ president and chief executive, described demand as "resilient" and forward bookings as "solid". Volaris will, he added, "continue stimulating our markets with our ULCC [ultra low cost carrier] model".
However costs were up year-on-year, Volaris' results showed, with fuel more than 50% pricier than in November 2021.
Growth prospects have been restricted by the rating of Mexican airports as "Category 2" by the Federal Aviation Administration (FAA) in the US, according to analysts at investment bank Cowen.
But Beltranena said the airline aimed to "deliver superior returns to shareholders" as he outlined short and long term plans at an annual investor day on December 6, adding that the airline is "well-positioned" ahead of a "likely return" to FAA Category 1 status and increased access to the US market.
"Despite significant disruptions during the past three years, Volaris has successfully navigated Covid-related challenges to capture market share, manage costs and solidify our position as one of the largest foreign operators in terms of flights in the U.S., all while advancing our mission to enable more people to travel well", the chief executive said, pointing to "favourable demographic and economic trends" in Mexico and the recent consolidation in the country's airline industry.
"Looking ahead, we will continue to deepen our engagement with our passengers, expand our routes into new markets, maintain our strong balance sheet and competitive cost advantage, and lean on our experienced team to continue driving our strategies forward", he said.