Mexico City, July 24, 2020 – Grupo Viva Aerobus today reported operating and financial results for 2Q2020, which reflect the effects of the COVID-19 pandemic in terms of global reduction in flight demand.
The airline reported a decrease in passengers of 83.6% compared to the second quarter of 2019, having registered just over 491 thousand passengers. Consequently, operating revenue for the quarter totaled 478 million pesos, a reduction of 83.9% compared to the same period of the previous year.
Total operating revenue was composed by 35% of fare revenue (168 million pesos) and 65% of ancillary revenue (310 million pesos). The higher share of ancillary revenue reflected the contribution of Viva Aerobus´ cargo service, which favored the operation of the airline while attending health emergency needs through an efficient, reliable and accessible air transport service. In this regard, Viva Aerobus had 10 of its Airbus A320 aircraft available to carry out 100% cargo flights.
In order to adapt its operation to passenger demand, by reducing costs and capitalizing on opportunities, Viva Aerobus adjusted its flights offer and has progressively resumed routes, moving from just over 40 routes available in May to 90 in July. All flights and operations are carried out under the ‘Viva Contigo’ program, which guarantees optimal hygiene and cleanliness conditions according to the sanitary and preventive measures issued by the corresponding authorities.
To sum it up, given the current scenario, Viva implemented several actions focused on mitigating the effects of the pandemic on its operation and finances such as optimizing installed capacity, strengthening cargo and charter operations, and suspending not essential expenses; all of this for the benefit of the liquidity of the company and its financial position. Moreover, the airline received the support of its suppliers, creditors and lessors. In this way, the airline has kept a stable liquidity, with cash and cash equivalents that amounted, at the end of the quarter, 2,399 million pesos.
These efforts were followed by the development of innovations, during this quarter, aimed at strengthening confidence and flexibility for passengers. As a result, “Full Refund” was launched, a new and unique flight insurance, at affordable prices, which guarantees 100% cash back of the cost incurred in acquiring the ticket in the event of any unforeseen situation such as accidents or illnesses.
Likewise, the “Zero Fare” was created, a new travel fare for those who do not need to carry checked or hand luggage, thereby receiving a discount in exchange for their right to carry this luggage. Besides, the new payment alternative “TU Aliado” was developed, which allows booking a flight, and postponing the payment of up to 60% of the total cost, by deferring the settlement of the Airport Departure Fee (TUA), from the time of purchase until flight's departure.
“The effects of COVID-19 pandemic on passenger demand have driven us to act diligently and strategically to transform Viva Aerobus into a resilient airline with the capacity to adapt to the evolving needs and priorities of air connectivity in Mexico. We remain committed to offer reliable flight options at the best price. Viva Aerobus will continue working towards its mission: Always Safe, Always Reliable and Always Low Prices. This by taking care of the economy of our passengers and joining to the economic revival of our country supported by an adequate financial position that provides us solid grounds to transit into the new normal and emerge as a stronger company once we overcome the pandemic, ”said Juan Carlos Zuazua, CEO of Grupo Viva Aerobus.
To consult the full earnings report, please visit Viva Aerobus investor relations site: https://ri.vivaaerobus.com/en.
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 38 Airbus A320. 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
Contactos para prensa
Walfred Castro, Corporate Communication Director of Viva Aerobus – email@example.com
Tarssis Dessavre, Account executive of PRoa Structura - firstname.lastname@example.org – Tel. (+52.55) 5442 4642 - ext.26 / Cel. 55 2751 1709