Mexican low-cost carrier (LCC) Volaris has reported a net profit of MXN 731 million ($40.2 million) for the third quarter of 2017, which is a decrease by 27.6% from the MXN 1 billion for the corresponding period in 2016.
Volaris CEO Enrique Beltranena commented that demand and traffic patterns had been improving and despite the competitive fare environment the company was on a path of recovery. The process was slowed down due to the natural disasters Mexico has experienced in September – hurricanes Irma and Maria, two tropical storms in the Pacific and two earthquakes that affected 11 Mexican states. As a result, Volaris had to cancel 50 flights in eight airports.
The third-quarter revenues reported from the airline were MXN 6.6 billion, which is a 2.2% decrease year-over-year. The non-ticket revenue, which includes checked bag fees on international flights, ancillary-product combination packages and commission revenue form travel-related products, however marked an increase by 18.6% to reach MXN 1.8 billion.
Total operating expenses for the quarter increased 4.6% to MXN 5.9 billion, while marketing, labor and fuel costs rose by 22.8%, 15.1%, and 7.9%, respectively YOY.
During 3Q17 the LCC also launched two new international routes from Mexico City to San Antonio, Texas and to San Jose, Costa Rica. It also added a second Airbus A320neo to its fleet of 67 Airbus aircraft. In addition to that, on September 21 the US Department of Transportation granted approval for Volaris’ subsidiary Volaris Costa Rica to operate flights from Central America to the USA.