Viva Aerobus reports financial results and announces an investment of 150 million dollars
The Mexican low-cost airline reported that reserved passengers grew 7.1% versus 1Q19
Passengers booked in 1Q21 reached more than 90% of those in 1Q20, despite the escalation in distancing measures that occurred in January (in some of our most important seats), and with a very important recovery in March, with a growth of 27.4% YoY, during said month, in this indicator.
Likewise, reserved passengers grew 7.1% against 1Q19, being the only airline in Mexico registering growth vs. 2019 Operating income for 1Q21 was practically in line with its annual comparison, amounting to Ps.2,604 million (even considering that the full impact of the effects of COVID-19 was not fully reflected in the Mexican airline industry during January and February 2020).
In the breakdown, 45.7% of the income corresponded to tariff income (Ps.1,190 million, -11.9% YoY) and 54.3% to ancillary income (Ps.1,414 million, + 6.8% YoY); The latter is a central element of our ultra-low-cost model, which has allowed us to mitigate the impact of the COVID-19 pandemic on revenues.
When compared to 1Q19, 1Q21 revenue grew 17.7%, while total revenue per passenger grew 9.9% vs. 1Q19 and 7.5% vs. 1Q20 EBITDAR remained in positive territory for the third consecutive quarter, reaching Ps.319 million, driven by the efficiencies achieved to keep expenses aligned with the current operating level.
However, a net loss of Ps.501 million was recorded, as a result of the recognition of virtual accounting effects (mainly in depreciation and amortization), which did not imply a cash outflow. Regarding the financial position, the company has continued its successful effort to preserve liquidity, through the efficient containment of expenses, and in this quarter it was also favored by the recovery of the operation and a notable increase in sales; managing to close 1Q21 with Ps.3,038 million in cash and cash equivalents, -5.0% YoY and 2.4% higher than 4Q20. The foregoing, despite having continued with the amortization of stock market liabilities (Ps.125 million this quarter),
The ultra-low-cost airline of Mexico, informs that, as part of its growth and expansion plans, it signed with the global fund CarVal Investors, a 5-year financing for the amount of $ 150 million dollars that will help Viva to carry out carry out its long-term vision, increase its market presence and strengthen its business model.
“This financing from CarVal Investors reflects confidence in Viva Aerobus' ultra-low-cost business model and in the viability of our expansion plans. With this milestone, we underpin our strategy to grow our fleet, routes and operations for the following years, fulfilling every day our mission to be Always Safe, Always Reliable and Always Low Prices, ”said Juan Carlos Zuazua, General Director of Viva Aerobus. "Without a doubt, CarVal's trust in Viva Aerobus strengthens us even more as one of the most solid, resilient and competitive low-cost airlines in Mexico and the world," he added.
“Viva Aerobus remains a highly attractive company for international investors and continues to diversify its sources of financing as part of its sustainable growth strategy. With a strengthened financial position and the commitment to offer the most competitive and reliable ultra-low-cost alternative, Viva Aerobus will continue to be the best option to fly to more and more destinations, ”said José Golffier, CFO of Viva Aerobus.
“At CarVal Investors we are very excited to support Viva Aerobus to continue with its mission of offering accessible, reliable and safe air transportation for all Mexicans. CarVal has 26 years of experience investing in aviation and to date we have invested more than $ 3.2 billion. This experience, combined with our strong presence in emerging markets, as well as our track record in structuring innovative financial solutions; allowed us to complete this historic funding. We are convinced that this is the beginning of a great partnership with Viva Aerobus ”, mentioned Lucas Detor, Managing Director of CarVal Investors.