The Mexican low-cost carrier Volaris expects 2022 to possibly be the best year of its history, as it projects record operating revenues and new aircraft coming. In 2021, Volaris posted outstanding financial numbers, despite the ongoing COVID-19 pandemic crippling airlines’ finances worldwide.
Volaris in 2022: soaring high
Volaris already began 2022 with high numbers, despite the Omicron variant hitting hard across the Latin American region. In January, Volaris carried 2.3 million passengers, growing by 21.2% compared to the same period in 2020, before the COVID-19 pandemic.
The Mexican operator expects to have great numbers throughout 2022, replicating and surpassing 2021’s success. Earlier this week, the airline said,
“Volaris expects to continue with its disciplined growth strategy for the rest of the year. Assuming no significant unexpected disruptions related to COVID-19 or other macroeconomics impacts to the business, the Company expects to grow capacity in the mid-twenties compared to 2021. Furthermore, it expects total operating revenue in the range of US$2.6 to US$2.8 billion.”
Volaris projects demand for domestic travel and passengers switching traveling via bus to airlines will continue strong this year. Internationally, Volaris will focus on growing in Central and South America in the short term. The United States, although a valuable market for Mexican carriers, remains paused as Mexico struggles to recover Category 1 status with the Federal Aviation Administration (FAA).
Volaris expects to receive 14 aircraft in 2022. Photo: Guillermo Quiroz Martínez via @gquimar.
The fleet
Last year, Volaris closed with a fleet of 101 aircraft. It was composed of six Airbus A319, 79 A320s, and 16 A321s. Most of them flew with the Mexican branch, while a few operate in El Salvador and Costa Rica.
Volaris’ fleet had an average of 187 seats, and less than 50% were Airbus A320neo or A321neo aircraft. The Mexican carrier expects to have a fully neo fleet by 2028.
In 2022, the company expects to receive approximately 14 Airbus aircraft and close the year with a fleet of 115 planes.
Currently, Volaris has the largest unfilled order from Airbus in the Latin American & Caribbean region, according to the OEM’s database.
On November 15, 2021, Volaris signed a new purchase order with Airbus for 39 A321neo aircraft. These new planes will arrive in the second half of the decade. Additionally, to these 39 aircraft (secured during the Dubai Airshow), Volaris converted 20 aircraft in its current order contract from A320neo to A321neos.
Volaris closed the year with 101 aircraft. Photo: Volaris.
How did Volaris do in 2021?
In terms of passengers, last year was Volaris’ best one so far, despite the ongoing COVID-19 pandemic.
Enrique Beltranena, Volaris’ CEO, said,
“In 2021, despite the demand uncertainty associated with COVID-19, we were able to report a strong performance. This highlights our team’s ability to manage and adapt to changing market dynamics.”
Volaris carried 24.4 million passengers last year, an 11% growth in comparison to 2019 levels. The Mexican low-cost carrier consolidated as the country’s leading domestic operator, with nearly a 40% market share. Volaris took advantage of Aeromexico’s Chapter 11 and Interjet’s ceasing operations.
Financially, Volaris had total operating revenues worth US$2.1 billion in 2021, a 29% increase compared to 2019. The airline’s net income for the year was over US$103 million, a 20% decrease compared to 2019, which can be explained due to a one-off, non-cash accounting charge by the end of the year. Excluding the one-time charge, Volaris would have had a net income worth US$190 million, a 47% increase compared to pre-pandemic levels.
Do you expect Volaris to have its best year ever in 2022? Let us know in the comments below.
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