Mexico City, April 29, 2019.- Grupo Viva Aerobus, holding company of Viva Aerobus, Mexico's ultra-low-cost carrier, reported a 12.9% growth in its total operating revenue during 1Q2019 compared to the same period of the previous year, totaling 2,212 million pesos.
This increase in operating revenue is explained by two key elements. First, the growing support of passengers. In this regard, between January and March 2019 nearly 2.4 million passengers chose Viva Aerobus as their flight option, reaching a load factor of 89.6%, one of the highest in the industry. This preference meant a growth of 13.5% in the number of passengers compared to the first quarter of 2018.
Secondly, considering a service model that allows passengers to select the precise characteristics of their flights, in order to only pay for what satisfies their needs and preferences, the airline achieved an increase of 21.6% in ancillary revenue, with a total of 1,078 million pesos. This boosted the growth of total revenue.
In this sense, total revenue of Grupo Viva Aerobus are made up of 51% for passenger revenue and 49% for additional services revenue (ancillary). This composition, characterized by a significant share of ancillary revenue, allows the airline, in addition to its disciplined operational efficiency, to continue offering the best prices, facing the sector's challenges such as the increase in the fuel price, rising competition and exchange rate volatility.
As mentioned by Gian Carlo Nucci, CEO of Grupo Viva Aerobus, the beginning of this year was also characterized by the strengthening of the airline´s financial position, being one of the first companies to issue debt in 2019. This consisted on two successful placements of local notes. The first one, carried out on February 14, consisted of long-term local notes (Certificados Bursatiles CEBURES) at Mexbol for Ps.1,000 million pesos with a 5-year term. Likewise, on March 21, short-term local notes, for 1,000 million pesos, were issued. As a result, the company improved its credit profile and cut interest expenses. Besides, part of the resources obtained will also be allocated to the company's expansion plan.
The expansion strategy of Viva Aerobus was boosted during this quarter thanks to the beginning of operations of two new routes from Mexico City to Oaxaca and Hermosillo; as well with the launching of new routes from destinations such as Cancun, Hermosillo, Tijuana, Mazatlán and Los Cabos. Moreover, it was announced the integration of several seasonal routes to the regular flight offer given the high demand of passengers, such as Tuxtla Gutiérrez - Puebla and Monterrey - Las Vegas.
"We continue expanding our service capacity so that more people can fly at the best price, closing the quarter with 111 routes to 45 destinations. Additionally, we offer the possibility to travel in one of the youngest fleets in the world, integrated by 30 Airbus A320 aircraft with an average age of 3.8 years", said Juan Carlos Zuazua, CEO of Viva Aerobus.
Due to this constant expansion of its route portfolio, Viva also increased its capacity, measured in available seats-kilometers (ASKs), by 12.2% compared to the first quarter of the previous year.
"These results reaffirm the solidity, stability, effectiveness and attractiveness of our ultra-low-cost business model, distinguished by the most competitive prices and a customer-focused service", said Gian Carlo Nucci.
To consult the full earnings report for 1Q2019, please visit Viva Aerobus investor relations site: http://ri.vivaaerobus.com/en
About Grupo Viva Aerobus
It is the holding company of several companies, among which is included the airline Viva Aerobus.
About Viva Aerobus
Viva Aerobus is Mexico's low-cost airline. It started operations in 2006 and today operates the youngest Latin American fleet with 30 Airbus A320 in 111 non –stop routes to 45 destinations. With a clear vision to give all people the opportunity to fly, Viva Aerobus has democratized the airline industry with the lowest rates in México and the lowest costs in Latin America, making their flights the best offer. For more information please visit: www.vivaaerobus.com/en
Walfred Castro, Corporate Communication Director of Viva Aerobus - email@example.com
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