Summary
- Volaris reported a net lack of $39 million in Q3 resulting from challenges brought on by Pratt & Whitney’s engine inspections, and other aspects.
- The corporate saw a ten% increase in total operating revenue in comparison with last 12 months, driven by strong demand and better ancillary revenue per passenger.
- Volaris is actively addressing the worldwide engine inspection issue and has developed a mitigation plan to offset the impact, specializing in maximizing unit revenues and optimizing its network.
The Mexican ultra-low-cost carrier Volaris reported a net lack of $39 million throughout the 12 months’s third quarter. This result was influenced by the challenges the airline faces resulting from Pratt & Whitney’s GTF preventive accelerated inspections on about 1,200 next-generation turbofan engines globally.
Volaris’ 2023 third quarter results
The Mexican company had $848 million in total operating revenue throughout the quarter. Volaris closed the period with a $39 million net loss and Earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) of $207 million.
Photo: Markus Mainka | Shutterstock.
Volaris’ total operating revenue had a ten% increase in comparison with last 12 months’s period, driven by robust demand across our network and an increase in ancillary revenue per passenger, said the corporate in a press release.
The challenges of Pratt & Whitney’s engines
Volaris said that despite facing challenges related to Pratt & Whitney’s accelerated inspections on GTF engines, the corporate is committed to making sure the protection, financial stability, and long-term success of the corporate. The airline added,
Within the meantime, Volaris has developed a mitigation plan to offset the impact partially. Next 12 months’s focus is maximizing Volaris’ unit revenues and margins while optimizing its network
A few of the company’s mitigation initiatives include negotiating lease extensions for several Airbus A320ceo-family base redeliveries. Volaris may also maintain the present delivery schedule with Airbus for 2024 and 2025, which provides for twenty-four already financed aircraft, and implement additional cost-efficiency initiatives.
Photo: Carlos Yudica | Shutterstock.
Last July, RTX, the parent company of Pratt & Whitney, advised that about 1,200 of its next-generation turbofan engines would should be inspected and partially disassembled. RTX said microscopic contaminants were present in a powdered metal utilized in high-pressure turbine discs. These contaminants could lead on to cracks within the engine, and lots of airlines and aerospace suppliers were impacted, including Air Latest Zealand, Singapore Airlines, Wizz Air, and Volaris. The Mexican company announced it might see a decrease within the expected total operating revenues a number of weeks ago.
Volaris’ fleet at the top of 2023’s third quarter
Throughout the third quarter, Volaris added two Airbus A321neo aircraft to its fleet. This brings the whole variety of aircraft to 125 as of September 30, 2023, said the corporate. Volaris’ fleet average age is 5.6 years, and it has a mean seating capability of 194 passengers per aircraft.
In comparison with 2022’s third quarter, Volaris added 14 latest planes to its fleet (4 A320neos and ten A321neos, but removed two A319s from its fleet.
The general leads to 2023
In the primary three quarters of 2023, Volaris carried 25.2 million passengers. That’s an 11.8% increase in comparison with the identical period last 12 months. The corporate registered $2.3 billion in total operating revenues and an overall $104 million net loss.
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