In July 2024, Volaris' ASM capacity decreased by 15.0% year-over-year due to the accelerated Pratt & Whitney engine inspections and the resulting aircraft groundings. Load factor in the month increased by 2.0 pp YoY to 89.8%, as RPMs decreased by 13.0%. Mexican domestic RPMs decreased by 20.0%, while international RPMs increased by 1.0%.
Volaris transported 2.7 million passengers during the month.
Enrique Beltranena, Volaris’ President and CEO said: “Our strategic fleet mitigation plan is on track and continues to deliver favorable outcomes; we have achieved our goals since the engine inspections began. We currently have a well-balanced market mix, with an increased presence in the cross-border market, that is strengthening our unit revenues. As shown with our July traffic, our booking curves similarly indicate robust performance for the summer high season.”
Operational Update
The Group remains focused on delivering operational excellence to maintain its fleet of aircraft with rigorous safety standards and providing advanced training to its pilots and cabin crew staff.
During H1 2024, the Company achieved 97% utilisation of its Full Flight Simulator following its opening last September. The device is the first in Central Asia to be certified by the European Union Aviation Safety Agency (EASA), reducing the overall training cost for the Company and travel time for its staff.
The Group signed a purchase agreement with L3 Harris in July 2024 for a second Full Flight Simulator.
The enhanced infrastructure is expected to enter service in H2 2025 and will provide the airline with increased capacity to fulfil its growing Airbus pilot training requirements. In addition, the Company plans to purchase Crew Rostering & Pairing Optimisers and a Document Management System, as well as trialling flight optimisation technology, all of which are expected to contribute to increased operational efficiency.
Alongside these initiatives, management remains focused on efficiencies across the business.
Following the re-implementation of the Fuel Tankering programme in mid-April, the Company achieved significant savings. Approximately 30% of fuel is sourced internationally, which the Company hedges
using call options. The Group is fully hedged for the anticipated uplift in international fuel prices for 2024 at levels of $80-85 with options without downside risk.
Tags: Enrique Beltranena, Volaris
