Volaris reports $28m fourth-quarter profit as it expands capacity

Mexico’s Volaris reported a profit of $28m during Q4 2022, as it expanded capacity and kept expenses flat. The ultra-low-cost carrier said on 21 February that for the full year, it posted a loss of $30m compared with a profit of $106m during 2021. Revenue during the final quarter of the year rose 22% to $820m, from $671 during the same three months a year ago. Revenue for the full year rose 29% to $2.85b from $2.2b. That said, expenses for the quarter and the year rose 44% and 55%, respectively. Jet fuel costs alone jumped 68% and impacted the airline’s profit margin in the short term, chief executive Enrique Beltranena says. “2022 was an important touchstone for Volaris, as it showcased our ability to deliver on the important financial expectations that are within our control,” he says. The airline expanded capacity 26%, and kept costs lower during a period of “significant economic volatility”, Beltranena adds. ADVERTVolaris transported 8.5m passengers during the final quarter of 2022, an increase of 16% over the same quarter a year ago. Domestic and international passengers numbers increased 14% and 26%, respectively, while total capacity, as measured in available seat miles (ASMs), increased 18% to 9.5b. During all of 2022, Volaris transported 31.1m passengers, up 27%, while total ASM capacity for the year rose 26% to 35.3b. It says it expects to add another 10% to its capacity during 2023. <br/>