Volaris posts Q3 loss, gears up for GTF mitigation and more US flights
Mexican discount carrier Volaris lost $39m in Q3 2023 and is planning to beef up its service to the USA while warning about flight disruptions caused by Pratt & Whitney (P&W) engine issues. The Mexico City-based carrier released its financial results on 25 October, saying it turned a $39m operating profit (excluding interest and taxes) in Q3, up 11% from last year. The carrier generated $848m in third-quarter revenue, up 10% year on year. “Volaris’ performance in the third quarter showed resilience, resulting in revenue growth,” says CE Enrique Beltranena. “This growth was mainly due to increased passenger volumes and record-high ancillary revenue per passenger. We achieved this by maintaining strong cost control, especially when it came to non-fuel expenses.” “Despite facing challenges related to Pratt & Whitney’s GTF preventive-accelerated inspections, Volaris is fully committed to ensuring the safety, financial stability and long-term success of our airline,” he adds. P&W is recalling thousands of PW1100G geared-turbofan (GTF) engines due to defective disks, a move that will force airlines globally to ground hundreds of Airbus A320neo-family jets at any given time in the coming year. During a call with investors, Beltranena says the issue will affect up to 73 aircraft in Volaris’ 126-strong Airbus fleet, and that the airline is “actively addressing the global issues” related to the engines. “We’ve developed a mitigation plan to partially offset the impact,” he says. “Management is looking for alternative solutions.” Those include extending leases on aircraft and redeploying capacity to other routes. Volaris says the issue will leave its Q4 capacity flat compared to last year and that its operating revenue will remain “at the low end” of its previous guidance of $3.2b.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-10-26/unaligned/volaris-posts-q3-loss-gears-up-for-gtf-mitigation-and-more-us-flights
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Volaris posts Q3 loss, gears up for GTF mitigation and more US flights
Mexican discount carrier Volaris lost $39m in Q3 2023 and is planning to beef up its service to the USA while warning about flight disruptions caused by Pratt & Whitney (P&W) engine issues. The Mexico City-based carrier released its financial results on 25 October, saying it turned a $39m operating profit (excluding interest and taxes) in Q3, up 11% from last year. The carrier generated $848m in third-quarter revenue, up 10% year on year. “Volaris’ performance in the third quarter showed resilience, resulting in revenue growth,” says CE Enrique Beltranena. “This growth was mainly due to increased passenger volumes and record-high ancillary revenue per passenger. We achieved this by maintaining strong cost control, especially when it came to non-fuel expenses.” “Despite facing challenges related to Pratt & Whitney’s GTF preventive-accelerated inspections, Volaris is fully committed to ensuring the safety, financial stability and long-term success of our airline,” he adds. P&W is recalling thousands of PW1100G geared-turbofan (GTF) engines due to defective disks, a move that will force airlines globally to ground hundreds of Airbus A320neo-family jets at any given time in the coming year. During a call with investors, Beltranena says the issue will affect up to 73 aircraft in Volaris’ 126-strong Airbus fleet, and that the airline is “actively addressing the global issues” related to the engines. “We’ve developed a mitigation plan to partially offset the impact,” he says. “Management is looking for alternative solutions.” Those include extending leases on aircraft and redeploying capacity to other routes. Volaris says the issue will leave its Q4 capacity flat compared to last year and that its operating revenue will remain “at the low end” of its previous guidance of $3.2b.<br/>
