Volaris announced a 48.7% y/y rise in passenger traffic for January, carrying a total of 2.3 million, conformed by annual increases in international passengers of 54.2%, followed by domestic traffic with 47.3%. The figures reflected an increase in capacity, measured in terms of Available Seat Miles (ASMs), of 32.3% y/y. On the other hand, the demand measured in Revenue Passenger Miles (RPMs) presented a jump of 45.4% y/y. Consequently, the load factor registered an increase from 7.4pp to 81.3%.
Positive implication: Volaris’ January data recorded a solid performance despite challenges in the environment. We believe this is due to the company’s leadership in Mexico’s aviation sector which has allowed it to capitalize on opportunities. It should be noted that the airline maintained an estimate increase of around 50% y/y in ASMs for 1Q22, which we consider as positive, since it should translate into attractive growth figures. In the meantime, we must focus on the results and the outlook update that the company may release when it reports 4Q21 next Thursday, February 24th, after the market closes.