Mexico’s Volaris credits Q4 revenue rise to ‘disciplined growth’

Volaris says its ”disciplined growth strategy” through the changing demand environment during Q4 helped it achieve a 43% rise in total revenue over the same period in pre-pandemic 2019. Revenue at the Mexico City-based ultra-low-cost carrier rose to Ps.13.9b ($680m) during Q1 of the year. That compares to Ps.9.73b in the same period two years ago. For the full year 2021, the airline reported revenue of Ps.44.7b, a 29% increase over 2019. “In 2021, despite the demand uncertainty associated with Covid-19, we were able to report a strong performance,” CE Enrique Beltranena says on 24 February. “Going forward we will continue to focus on executing our growth strategy. This centres upon catering to the travel demands of a large, growing middle class in Mexico, focusing on longer-haul bus substitution, and growth in our international markets.” The company said it posted a Q4 loss of Ps.200m that was impacted by a one-off accounting charge of Ps.2.25b “related to the termination of a non-derivative financial instrument as a result of the change in the functional currency”. Without the charge, the airline would have earned a profit of Ps.1.56b, up 21% over the figure for Q4 2019. Volaris changed the currency in which it reports from the Mexican peso to the US dollar at the end of 2021. “As a result of the recent developments in the company’s operational environment, the way it measures its business performance, the determination of the selling fares based on US dollar, the increase of operations in the international market, and that most of Volaris’ cost is determined and denominated in US dollars, the company concluded that the currency that most reflects its operations is the US dollar,” the carrier says.<br/>