Mexico’s VivaAerobus posts $56m profit during third quarter

Mexican low-cost carrier VivaAerobus earned $56m during the third quarter of 2023, its second consecutive quarter with a profit, as demand was high and fares improved. The Monterrey-based ultra-low-cost carrier said on 26 October that revenue during the three months that ended on 30 September rose 44.8% to $571m. Its operating profit (before interest and taxes) was $113m. “Our [third quarter] performance reflects the strength of the underlying market in Mexico and a disciplined capacity deployment, delivering our highest revenue, operating profit (EBIT), and net income in a quarter,” says CEO Juan Carlos Zuazua. “Our core markets are poised to benefit from the solid fundamentals, leveraging our unique and well-positioned network and effective revenue and ancillary management strategy.” Mexican carriers including VivaAerobus rejoiced last month when the FAA lifted the country’s safety status back up to Category 1, the highest category, after two and a half years. That allows the country’s airlines to once again begin expanding their networks and adding transborder flights back to their schedules – which they were unable to do as long as the country had been downgraded to the lower Category 2. “The Mexican domestic market continues to grow at a healthy double-digit rate while the recovery of Cat 1 opens the opportunity to increase our presence in attractive markets in the US, allowing for more flexibility in our network,” says Zuazua. Shortly after the Category 1 announcement, Viva said it would introduce six new routes to the United States – to Austin, Denver, Miami, New York, Oakland and Orlando – beginning in the first half of 2024. ”The US routes are designed to serve the world’s largest international air travel market with affordable options, truly making it easier for people to visit family and friends, take vacations or conduct business,” Zuazua said at the time.<br/>