Mexico City, February 27, 2019.- Grupo Viva Aerobus, holder of Viva Aerobus, Mexico's low-cost carrier, reported a 44% increase in its total operating revenue corresponding to 4Q2018 in comparison to the same period of the previous year, with a total of 3,018 million pesos.
This revenue was composed of 50.9% from passenger revenue and 49.1% from ancillary revenue. It should be noted that the share of ancillary revenue is one of the highest in the industry at a global level; which is why Viva is able to offer the most competitive prices and face the costs fluctuations and macroeconomic variables.
According to Gian Carlo Nucci, CEO of Grupo Viva Aerobus, this financial strength, within a challenging context given the increase in fuel costs and exchange rate volatility, was the result of the airline's business model based on its operational efficiency and its unique proposal: security, reliability and low prices. Due to this service, Viva was distinguished by the growing preference of passengers, having reported an increase of 22.7% in the number of customers during October-December 2018 compared to the same period of the previous year, and with a load factor of 89.5%.
Moreover, the airline achieved increases in its EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) and in the net profit corresponding to the fourth quarter of 2018. Regarding the first concept, the airline reached 1,450 million pesos in comparison to the 677 million pesos obtained in 4Q2017. As for the net profit of 4Q2018, Viva Aerobus obtained 487 million pesos in contrast to the 20 million pesos of the last quarter of 2017.
Besides, given a continuous expansion of its route offer and aircraft portfolio, Viva significantly increased its service capacity. In this sense, available seats-kilometers (ASKs) reached 3,341 million in the period October - December 2018, which represented an increase of 30.8% compared to 4Q2017.
These positive results of Viva Aerobus were also present throughout the year. For instance, the operating revenue of 2018 registered an increase of 34.6% over 2017, and with a total of 10,034 million pesos. This revenue was composed of 52.4% from passenger revenue and 47.6% from ancillary revenue.
"This 2018, we positioned ourselves as a benchmark in terms of growth in the sector. We were the airline with the highest load factor, with 90%; as well as with the largest increase in passengers in the industry with 22% more than in 2017. This allowed us to become the most profitable Mexican airline due to the solid financial increases reported. And, this 2019, we will keep working focused on reinforcing a service oriented a 100% in customers", said Juan Carlos Zuazua, CEO of Viva Aerobus.
Likewise, the company achieved a 53.1% growth in net income for the full year of 2018, going from 556 million pesos recorded in 2017 to 850 million pesos in 2018. Additionally, the airline reported 3,887 million pesos of EBITDAR, this implied an increase of 45% compared to the 2,681 million pesos registered annually in 2017.
Regarding other annual results, it stands out that the available seats-kilometer (ASKs) reached 12,111 million, which represented an increase of 29% compared to 2017.
In addition to these figures, 2018 was characterized by a series of milestones for the company in terms of sustainable expansion. In this sense, Viva Aerobus, for the first time, exceeded the offer of 100 routes, having launched 20 new flights in 2018; signed the second largest acquisition of aircraft in its history with an investment over 3.5 thousand million dollars; and closed the year with more than 10 million passengers, the largest number of customers registered in a single year. Furthermore, Viva closed 2018, with the youngest fleet in Mexico, consisting of 31 aircraft (21 Airbus 320ceo and 10 Airbus 320neo); with an average age of 3.8 years.
To consult the full earnings report for 4Q2018, please visit Viva Aerobus investor relations site: http://ri.vivaaerobus.com/en
About Viva Aerobus
Viva Aerobus is Mexico's low-cost airline. It started operations in 2006 and today operates the youngest Latin Amer-ican fleet with 31 Airbus A320 in 104 non –stop routes to 45 destinations. With a clear vision to give all people the opportunity to fly, Viva Aerobus has democratized the airline industry with the lowest rates in México and the lowest costs in Latin America, making their flights the best value offer. For more information please visit: www.vivaaerobus.com/en
Walfred Castro, Corporate Communication Director of Viva Aerobus - email@example.com
Tarssis Dessavre, Ejecutiva de Cuenta de PRoa Structura - firstname.lastname@example.org – Tel. +52 55 5442 4642 - ext.26 / Cel. +52 1 55 2751 1709