Volaris shareholders vote in favour of capital increase

Mexican low-cost carrier Volaris has won shareholder approval to raise up to Ps3.5b ($164m) in capital. The airline says it is “evaluating different financing alternatives” after shareholders approved the plan at an extraordinary general meeting on 18 September. Options under consideration are a rights offering, the outright sale of shares and the issuance of debt/convertible debentures in Mexico, the USA and other countries. “The company’s goal is to obtain the most cost-effective financing structure that delivers both strength to our balance sheet and reaffirms our long-term commitment to employees and shareholders,” adds Volaris, which views the Covid-19 crisis as “an opportunity to ramp up more quickly and strengthen its competitive position”. The Mexico City-based carrier will determine the terms and conditions of the capital increase “based on the prevailing market conditions at the time of such offering”.<br/>