Volaris reported a net loss of $65 million in the first half of the year but had record operating revenues of $1.51 billion. Volaris is hopeful of a strong second half of the year with solid booking curves and Mexico regaining Category 1 FAA status, allowing the airline to launch new routes to the United States after more than two years.
Between January and June 2023, Volaris reported 16.55 million booked passengers, a 14.6% increase compared to last year. Of this total, 12.95 million were domestic, and 3.60 million were international, with a jump of 10.2% and 33.5%, respectively.
Volaris recorded $1.51 billion in total operating revenues and $1.49 billion in total operating expenses. The carrier had a $65 million net loss, which is a better result than the $98 million net loss in the first half of 2022.
By June 30, Volaris had a fleet of 123 aircraft, an increase of ten versus 2022. It operates three Airbus A319s (which are on their way out eventually), 40 A320ceos, ten A321ceos, 51 A320neos, and 19 A321neos. Volaris has domestic branches in Mexico, Costa Rica, and El Salvador.
Traditionally, the second half of every year is the strongest for Mexican airlines. Volaris is expecting to see a strong booking trend for the remainder of the year with the possibility of launching new US routes, and the introduction of new aircraft.
Commenting on the results, Enrique Beltranena, president and chief executive officer, Volaris, said: “We will continue to focus on delivering Total Operating Revenues between 3.2 and 3.4 billion dollars. Additionally, the solid bookings for the upcoming summer months further validate the resilience of the VFR passenger base in Mexico and the robust demand in Central America and the United States.”
“For the second half of the year, the seasonally stronger semester, we are looking forward to several top-line tailwinds, including solid booking curves, stable international fares, a return of Category 1, strong Central American growth, a more solid domestic network, and a ramp-up of ancillary projects,” Beltranena added.
The airline placed firm order of 25 additional Airbus A321neos at the Paris Air Show. After receiving its 124th aircraft last week, Volaris expects to get 141 new narrowbody planes in the next few years.
The airline recently launched about 40 new domestic routes.