Volaris posts US$62m Q1 net loss, cites domestic LCC fare rivalry
Mexican ultra-LCC Volaris reported a MXP1.1b (US$61.5m) net loss for Q1 of 2018, narrowed from a MXP1.3b net loss in Q1 2017, as competitive low-cost fares in the country’s domestic market and increased industry capacity continued to inflict pressure on the carrier. Volaris closed out 2017 with a full-year MXP595m net loss. Foreign exchange volatility also challenged the airline’s financial bottom line. Compared to Q1 2017, the Mexican peso appreciated 8% against the US dollar in the past year, resulting in Volaris registering a MXP691m net foreign exchange loss for the quarter, an 18-fold increase over MXP38m in net exchange losses a year ago. Volaris’ Q1 revenue totaled MXP5.9b, up 2.7% year-over-year, with passenger revenues up 2.3% YOY to MXP5.5b, buoyed by a 17.4% increase in ancillary revenues. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-05-03/unaligned/volaris-posts-us-62m-q1-net-loss-cites-domestic-lcc-fare-rivalry
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Volaris posts US$62m Q1 net loss, cites domestic LCC fare rivalry
Mexican ultra-LCC Volaris reported a MXP1.1b (US$61.5m) net loss for Q1 of 2018, narrowed from a MXP1.3b net loss in Q1 2017, as competitive low-cost fares in the country’s domestic market and increased industry capacity continued to inflict pressure on the carrier. Volaris closed out 2017 with a full-year MXP595m net loss. Foreign exchange volatility also challenged the airline’s financial bottom line. Compared to Q1 2017, the Mexican peso appreciated 8% against the US dollar in the past year, resulting in Volaris registering a MXP691m net foreign exchange loss for the quarter, an 18-fold increase over MXP38m in net exchange losses a year ago. Volaris’ Q1 revenue totaled MXP5.9b, up 2.7% year-over-year, with passenger revenues up 2.3% YOY to MXP5.5b, buoyed by a 17.4% increase in ancillary revenues. <br/>
