Volaris makes history on the Mexican Stock Exchange


The ultra low-cost Mexican airline celebrated a new placement of certificates. So far this year, the Volaris share listed on the BMV, reports performance of over 76%.

Volaris, the ultra low-cost Mexican airline, celebrated a new placement of certificates on the Mexican Stock Exchange (BMV). Image: Pixabay
Volaris, the ultra low-cost Mexican airline, celebrated a new placement of certificates on the Mexican Stock Exchange (BMV). Image: Pixabay

The campaign reinforces the airline's confidence in Mexico, as well as its commitment to continue investing in the growth of the aeronautical sector.

"Today we celebrate that, thanks to the confidence of our investors, we will be able to continue financing the arrival of new aircraft with the latest technology, and with them we will be close to more people traveling for the first time, who want to meet their families across the border or seek to discover unique places through the wide range of routes we have today," said Enrique Beltranena, executive president and CEO of Volaris.

In statements to estrategiaynegocios.net, Beltranena said the airline represents a high growth potential. In recent months the airline, which operates through the model of "ultra-low-cost", has managed to consolidate itself as the leading airline in the Mexican domestic market, performance that is already reflected in the value of the company.

"So far this year the Volaris share, listed on the BMV, reports performance of over 76%. The consensus of analysts who follow the company's results reflects a tremendously positive trend based on the results generated. This year we became Mexico's first domestic passenger carrier and we have become the company that has displaced more capacity in terms of supply based on the market," said the executive.

The company is the Mexican airline with more routes in the U.S. and there is potential to grow more.

"An outstanding use of assets, investors clearly measure the growth of companies, that growth is measured with a rate show that is basically the one that arises from how much revenue grows and what is the proportion of their income to total assets.

"As a Central American I feel tremendously proud of what we have achieved with our team in Mexico and position the company as the largest in passenger transport in Mexico with a more or less recent history of fewer than 15 years," said Beltranena, executive president and CEO of Volaris, who is of Guatemalan origin.

José Oriol Bosch Par, General Director of Grupo Bolsa Mexicana de Valores, pointed out that "the placement of Volaris is a clear example that companies are finding the necessary conditions to obtain resources from the investing public and where the BMV is a real and viable option for companies in our country to obtain financing on competitive and accessible terms".

Volaris' business model focuses one hundred percent on transporting more passengers and allows the company to maintain low operating costs in order to offer a lower fare, build a network of diversified routes point to point and give the customer the option to decide what they want to add to their flight, under the scheme "You Decide".

The company has 196 domestic and international routes through which it has transported 113.5 million passengers since its inception in 2006.

"Without a doubt, the work of our Ambassadors has been fundamental in building and telling new chapters in the history of the Volaris family.

The executive explained that when he joined the airline, the operation was supported by a fleet of 22 aircraft and a hub in Toluca.

"Now we operate more than 190 routes in the entire national and international market. We have transported more than 110 million passengers and have participated in Airbus' negotiations for the largest fleet of narrow-aisle aircraft. Today we are the company with the unit cost of operation within the two best in the world, we give a passenger service of some indexes of the framework of being a low-cost airline with a recognition of "on-time performance" and timely arrivals that is among the best structures of the American continent".

Volaris is the only Mexican airline listed on both the Mexican Stock Exchange (BMV) in Mexico and the New York Stock Exchange (NYSE) in the United States.

Source: estrategiaynegocios.net

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Volaris surpassed Aeromexico in passenger numbers within Mexico

The low-cost airline exceeds in value to the firm controlled by the US Delta. Cost control has been key to its recovery in the market.

The low-cost airline Volaris left behind the bad moment that it lived in the Mexican Stock Exchange (BMV) last year. Now, the company, which in 2018 dethroned Aeromexico in the transport of passengers within the country, exceeds this same competitor in market value.

As of the second half of February, Volaris broke the ceiling of 16,000 million pesos (mdp) in stock market value, leaving behind Aeromexico, which fell below 14,000 mdp, according to data from Bloomberg.

The main airlines in Mexico had a year to forget in 2018, with losses and cuts in personnel, routes, and aircraft. However, Volaris, which increased its losses to 687 million pesos, from 652 million pesos in 2017, contained its operating costs. "This is a company that tries to incentivize traffic based on generating low rates. Volaris has been able to do it because it has had control of expenses, "Marco Antonio Montañez, the analyst at Vector Casa de Bolsa, said in an interview.

The operating cost of Volaris per seat-mile (CASM), excluding fuel, contracted 9.3%, to 4.5 cents at the end of 2018. Aeromexico -which does not have a low-cost strategy- raised its costs 7.1%, to 9.7 cents. Due to these results, Aeromexico, whose losses went from 69 mdp in 2017 to 1,879 mdp in 2018, announced that its air capacity would not grow.

"The company is cautious, and sent this message to the market to take great care of its profitability and to grow practically nothing this year," said Rafael Antonio Camacho, an analyst at Banco Ve por Más. "But that, in perspective, is not favourable for the market. , because the company will grow little in income, given that the competitive environment continues."

According to the analysts consulted, another of the factors that play against Aeromexico among investors is the uncertainty about the three airports plan proposed by the government after canceling the Texcoco airport. The administration wants the Santa Lucia base, the current capital airport and the Toluca aerodrome to operate simultaneously.

Aeromexico may be more affected than Volaris by this scheme because its business model needs to concentrate its flights in a single airport. The ideal scenario for Aeroméxico would be to operate only from the International Airport of Mexico City.

However, low-cost Mexican airlines, such as Volaris and VivaAerobus, may also face lower-than-expected growth during 2019, particularly if the Mexican economy slows and international traffic does not grow, Barclays estimates in a study.

The airlines that operate in the country had their lowest growth in passenger traffic in the last five years in 2018, but they managed to grow anyway: last year, this increase was 7.6% at an annual rate, adding 97.2 million passengers It is a record for the seventh consecutive year.

By Agencies