Viva Aerobus Group released its operating and financial results for the third quarter of 2020, which shows a gradual and consistent recovery, both in passenger demand and capacity.
The Mexican low-cost airline handled more than 1,8 million passengers, four more times than in the second quarter of this year, reaching capaciy levels around 80% during September, with services in 95 routes (57 in June). This month Viva Aerobus announced it will add 13 new domestic destinations and 7 abroad.
This increase in traffic lead to double operating income, to MEX 1,831 millions (USD 88 millions). 43% of its operating income were from tickets and 57% from ancillary services.
In order to generate new incomes, the airline launched new services:
- Flight Insurance with 100% refund in case of unexpected events.
- Preferential rates for waving the right to carry hand and checked baggage, and an alternative for the passengers to defer payment of Airport Departure Fee from the moment of purchase until check-in.
- Viva Aerobus launched VIP Priority and Space + seats.
“This revenue strategy reflects the freedom of choice that the airline gives passengers to customize their flight according to their preferences, paying only for what they need. This makes it possible for us to maintain competitive fares for passengers” said Viva AeroBus in a statement.
As a result of incresing revenues, EBIDTAR was positive at MEX 272 millions (13 million dollars). Net loss reached MEX 734 millions, primarily due to non-cash valuation effects, according to the airline.
“We are committed to the economic, tourism and air transport reactivation in our country and we are doing it responsibly; prioritizing the safety of our Viva People and our passengers, improving and protecting the liquidity of the company, aligning the cost structure of the business to this new reality, seeking new sources of income and taking care of the economy of our passengers, and reestablishing our seats capacity gradually, while opening new routes to meet the demand of our passengers. All this with the support of more than 2,000 passionate collaborators, with a high focus on social responsibility and protecting our environment” said Juan Carlos Zuazua, CEO, Grupo Viva Aerobus.
