Volaris yesterday presented its financial and operating results for the fourth quarter of 2022, as well as the annual balance sheet of its operations. The Mexican low-cost carrier reported a net loss of 30 million dollars, a figure that contrasts with the profit it made in 2021.
“2022 was an important touchstone for Volaris, as it showcased our ability to deliver on the important financial expectations that are within our control”, said Enrique Beltranena, the company’s President and CEO.
“We flexed our organization to post strong topline results and expand capacity by 26%, while keeping controllable expenses roughly flat as our adjusted cost per available seat mile excluding fuel was down 0.4%, all during periods of significant economic volatility”, he explained.
“While the 68% increase in fuel costs impacted our margin in the short term, the discipline and focus our team showed throughout this challenging year is a reminder of why we are poised to lead Mexican air travel in the coming decade”, Beltranena concluded.
Looking ahead to the new year, the company expects to “execute its growth plans, despite potential global macroeconomic and geopolitical challenges, while continuing to service the robust demand seen within its current network”. In that sense, Volaris said it expects to achieve revenues of up to 3.4 billion dollars by 2023 and make capital investments of about 300 million. The company expects to increase its fleet and have 125 aircraft in operation by the end of this year.
Key financial and operational results for Volaris in the fourth quarter 2022
- Total operating revenues of 820 million dollars, up 22% from October to December 2021.
- Revenue per available seat mile increased 2.1% year-on-year to 8.63 cents.
- Operating expenses reached 760 million dollars, representing 93% of total service operating revenue.
- Total operating expenses per available seat mile increased 21% to 8 cents.
- Average fuel cost was 3.71 dollars per gallon, up 45% compared to the fourth quarter of 2021.
- The company reported a net profit of 28 million dollars.
- Volaris added four Airbus A321neo and one A320neo to its fleet.
Key financial and operating results for Volaris in 2022
- Total operating revenues of 2.847 million dollars, up 29% compared to 2021.
- Revenue per available seat mile increased 2.1% year-on-year to 8.07 cents.
- Operating expenses reached 2.803 million dollars, representing 98% of total service operating revenue.
- Total operating expenses per available seat mile increased 23% to 7.95 cents.
- Average fuel cost was 3.80 dollars per gallon, up 68% compared to 2021.
- The company reported a net loss of 30 million dollars. In 2021, it had recorded a profit of more than 100 million.
- As of 31 December 2022, Volaris had 117 aircraft in operation (four Airbus A319, 88 A320 and 25 A321). Of this total, 54% were New Engine Option (NEO) airplanes. Its fleet had an average age of 5.4 years and an average capacity of 192 passengers per aircraft.
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