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Grupo Viva Aerobus increased its operating revenue by 27% in 2019, total of 12,874 million pesos

Published Monday, February 24, 2020

Mexico City, February 24, 2020. – Grupo Viva Aerobus achieved a 27.8% increase in its total operating revenue for the full year of 2019 with $12,874 million pesos compared to 2018.

This growth in the airline´s revenues resulted from the increasing preference of travelers. In 2019, Viva Aerobus exceeded its annual passenger record with 12 million customers, 20% more than in 2018. This increase in passengers is due to a proposal that combines low prices and allows customers to choose the characteristics of each flight according to their needs.

This proposal is possible thanks to a service segmentation strategy that allows Viva Aerobus to keep highly competitive rates despite the fluctuations of macroeconomic variables that affect the price of tickets, thus directly benefiting passengers. This fragmentation of costs is reflected in the fact that 55% of annual total revenues correspond to passenger revenue (7,086 million pesos) and the remaining 45% (5,788 million pesos) to ancillary revenue.

Consequently, the airline also reported positive numbers in terms of its annual net income, which amounted 697 million pesos and an EBITDAR of 3,875 million pesos.

In response to the favorable demand of travelers for Viva Aerobus´s option, and part of the airline's commitment to amplify Mexico's connectivity at affordable prices, last year Viva inaugurated 23 routes and incorporated 8 new Airbus A320 aircraft. Therefore, the airline increased its annual capacity, measured in available seats per kilometer, by 24.6% compared to 2018.

“2019 was a successful year for Viva Aerobus. The strength of our business model and the professionalism of our team allowed us to reach our financial goals and set new records. We positioned ourselves as the Mexican airline with the highest passenger growth, we expanded our offer closing with 118 routes, and we were pioneers in Mexico by implementing a new sales scheme through an online flight bidding system,” said Juan Carlos Zuazua, CEO of Grupo Viva Aerobus.

These favorable annual results of Viva Aerobus also fed on the positive figures, punctually, achieved in the fourth quarter of the year. It is remarkable the 23% increase in quarterly operating revenue compared to 4Q2018, totaling 3,728 million pesos; this driven by the 20.9% growth in the number of passengers during October - December 2019, exceeding 3.2 million customers.

The last quarter of 2019 was also characterized by the expansion of the airline. During this period, Viva started the seasonal routes to Chicago from 5 Mexican cities, reincorporated another 7 winter routes and celebrated the start of the regular routes Monterrey - La Paz, Monterrey - San Luis Potosi and Puerto Vallarta – Tijuana. Moreover, as a tourism promoter, the airline signed an alliance with the Mexican Association of Travel Agencies in November.

“This 2020 we will remain focused on strengthening our portfolio of routes and frequencies, adding new aircraft and working on different initiatives and alliances that enrich the travel experience of our passengers. We are heading for even greater achievements so that our investors, collaborators and clients reap the fruits of a real ultra-low-cost offer that combines quality and price, "added Juan Carlos Zuazua.

To consult the full earnings report, please visit Viva Aerobus investor relations site: https://ri.vivaaerobus.com/en

Financial Indicators (MXN million) 4T19 4T18 Var.% 2019 2018 Var.%
Operating revenue 3,728 3,031 23.0% 12,874 10,077 27.8%
EBITDAR* 1,122 986 13.7% 3,875 3,148 23.1%
EBITDAR Margin* 30.1% 32.5% (2.4 p.p.) 30.1% 31.2% (1.1 p.p.)
Operating Income* 315 276 14.1% 935 760 23.0%
Operating Margin* 8.4% 9.1% (0.7 p.p.) 7.3% 7.5% (0.3 p.p.)
Profit before income taxes (PBT) 658 71 ›100.0% 579 523 10.6%
PBT Margin 17.7% 2.4% 15.3 p.p. 4.5% 5.3% (2.9 p.p.)
Net Income 648 174 ›100.0% 697 727 (4.2%)
Net Margin 17.4% 5.7% 11.6 p.p. 5.4% 7.2% (1.5p.p.)

* On a comparable basis, adjusted for 2018 because of the implementation of IFRS 16.

Operational Indicators 4T19 4T18 Var.% 2019 2018 Var.%
ASKs (million) 4,153 3,341 24.3% 15,080 12,104 24.6%
RPKs (million) 3,642 2,992 21.7% 13,374 10,896 22.7%
Total Passengers (thousands) 3,282 2,714 20.9% 12,019 10,014 20.0%
Load Factor (%) 87.7% 89.5% (1.8 p.p.) 88.7% 90.0% (1.3 p.p.)

About Grupo Viva Aerobus

It is the holding company of several companies, among which is included the airline Viva Aerobus.

About Viva Aerobus

Viva Aerobus is Mexico's low-cost airline. It started operations in 2006 and today operates the youngest Latin American fleet with 37 Airbus A320 in 123 non –stop routes (101 national and 22 international) to 50 destinations (36 national y 14 internationals). 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

Viva Aerobus press contacts:

Walfred Castro, Corporate Communication Director of Viva Aerobus - walfred.castro@vivaaerobus.com

Tarssis Dessavre, Account executive of PRoa Structura - tdo@proa.structura.com.mx – Tel. 55 5442 4642 - ext.26 / Cel. 55 2751 1709

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Monterrey International Airport. Terminal C, Miguel Aleman highway Km 24, Apodaca, NL, Mexico, C.P. 66600
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Mexico (Toll free) 81 82 150 150
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Monterrey International Airport. Terminal C, Miguel Aleman highway Km 24, Apodaca, NL, Mexico, C.P. 66600
Call Center
Mexico (Toll free) 81 82 150 150
United States +1 866 FLY VIVA (+1866 359 8482)