Mexican low-cost carrier Viva Aerobus said that a 20.7% decline in operating revenue during the first quarter of the year can be attributed to a high comparison base from last year and a softer macroeconomic backdrop.
The airline stated it observed “cautious consumer behaviour” across markets, particularly on off-peak days, as it continues to navigate industry-wide headwinds, including the ongoing recall of Pratt & Whitney (P&W) GTF engines, which power its A320neo family fleet. On average 26 A320neo family aircraft were grounded during the quarter due to engine reliability issues, the airline confirmed.
“To mitigate the impact of the P&W engine recall on our network, we are extending leases, taking contracted new deliveries, and sourcing short- and medium-term capacity,” Viva said within its first quarter results.
Viva’s operating revenue for the first three-month period of 2025 fell to $491 million, down from $619 million, with the company citing fare and ancillary revenue decline.
“In the seasonally slow first quarter, further impacted by a high comparison base from a unique operational environment last year, including the positive effects from the fleet groundings in the Mexican market and the shift of Easter holidays into April this year,” said Juan Carlos Zuazua, the airline’s chief executive officer.
Zuazua added: “Despite a Mexican peso depreciation of 20.2% impacting our unit revenues, performance in local currency remained solid, reflecting a resilient demand environment.”
The airline posted an operating loss (EBIT) of $18 million; this is in contrast to an operating profit of $104 million that was reported for the first quarter of 2024. The carriers EBIT margin declined sharply to -3.7% from 16.7% a year earlier. EBITDAR also declined 36.9% on the year prior to $149 million, with EBITDAR margin falling to 30.2% from 38%.
Net Loss was $42 million for the quarter, with a net loss margin of 8.5%.
Available seat miles (ASMs) reached 5.8bn, up from 5.3bn, while total booked passengers rose 10.8% to 6.83 million. However, the airline’s load factor slipped to 84.8% from 86% in the first quarter of last year.
Viva carried 6.8 million passengers during the quarter, reflecting an increase of 10.8% when compared to the same period of the year prior. Ancillary revenues decreased 7.5% to $240 million compared to 2024, representing 48.8% of total revenues.
During the quarter, Viva added ten aircraft to its fleet – five A320ceo aircraft, three A320neos and two A321neos.