Equity Analysis /
Mexico

Volaris: Flash VOLAR: November passengers maintain strong dynamism

  • Volaris recorded a 47.0% y/y increase in passenger traffic in November (+27.1% vs 2019), carrying 2.4 million

  • Capacity (ASMs) rose 28.8% y/y (+26.2% y/y vs 2019), while demand (RPMs) 41.7% y/y, a 25.7% surge vs 2019

  • The good demand dynamism could continue for year-end, although we must monitor the evolution of the omicron variant

Jose Itzamna Espitia Hernandez
Jose Itzamna Espitia Hernandez

Senior Equity Research Analyst, Infrastructure, Materials and Transportation

Follow
Marissa Garza Ostos
Marissa Garza Ostos

Head of Equity Research

Follow
Banorte
6 December 2021
Published byBanorte

Volaris recorded a 47.0% y/y increase in passenger traffic in November (+27.1% vs 2019), carrying 2.4 million passengers, comprised of year-over-year rises in international passengers of 62.2%, followed by domestic users with 44.0%. The figures reflected growth in capacity, measured in terms of Available Seat Miles (ASMs), of 28.8% y/y (compared to 2019 the increase was 26.2%). Meanwhile, demand measured in Revenue Passenger Miles (RPMs) rose 41.7% y/y, equivalent to a 25.7% increase vs. 2019. Based on the above, the load factor showed an advance of 8.0pp to 88.5%.

Positive implication: Volaris' November data presented a solid performance that we believe could continue for year-end. The airline’s outlook remains favorable, but we must monitor the evolution of the omicron variant that could have some impact on demand in the short term, although for now we consider it would not be so significant. Therefore, we expect the volatility in the stock to continue.