Mexico’s Volaris mounts new offensive as rival airlines struggle

Mexico’s biggest airline plans to use proceeds from a $173m stock sale to pounce on struggling rivals as it rebounds from an unprecedented travel collapse. Volaris is restoring seating capacity this month to 100% of last year’s levels and targeting a return to profitability by the second quarter of 2021, said CEO Enrique Beltranena. The carrier has also identified a dozen or so Mexican destinations and almost twice as many abroad where it will invest in grabbing market share as demand returns and Covid-19 vaccines take hold. “This was an offensive move,” Beltranena said of the share offering. “There was also a market effect from vaccine news, and a weakened dollar means we’ll be able to maximize those pesos.” The moves herald Volaris’s return to the attack after the coronavirus pandemic gutted travel demand. Unlike their US counterparts, Mexican airlines didn’t receive any government aid. But Volaris slashed fares 30% to coax people onto planes and benefited from a route network geared to the leisure market. That contrasted with the fate of Grupo Aeromexico SAB, which filed for Chapter 11 bankruptcy as its business-travel markets evaporated.<br/>