Can Viva Aerobus Extend Its Good Fortune Into 2020?

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Viva Aerobus had a great 2019. It had record numbers in almost every financial and operative indicator. The biggest them of all was an increase of 27.8% in its annual earnings, posting a total of $675 million USD.

Viva Aerobus
Viva Aerobus had amazing growth in 2019. Photo: Viva Aerobus

The low-cost airline had good financial figures

During 2019, Viva Aerobus also posted earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) of $203 million USD. It meant an increase of 23.1% in comparison to 2018.

Juan Carlos Zuazua, CEO of Viva Aerobus, said

“The strength of our financial model and the professionalism of our team allowed us to reach our financial goals and establish new records. We are the Mexican airline with the biggest passenger growth.”

Last year, the three low-cost airlines in Mexico, Viva Aerobus, Volaris, and Interjet had incredible growth numbers. While we can argue for months about which one of these is the best, we can say the three airlines took advantage of the situation in the country.

Mexico’s oldest airline, Aeroméxico, faced constraints in its international market due to the Boeing 737 MAX crisis. In the domestic market, it also found it impossible to grow due to the saturation of Mexico City International Airport, its main and only hub.

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Viva Aerobus
Viva Aerobus is one of the three low-cost airlines in Mexico. Photo: Viva Aerobus

Consolidating the low-cost model in Mexico

Currently, Viva Aerobus has a fleet of 37 Airbus A320s. It operates 123 routes, 101 domestic and 22 international, to 50 destinations. Viva started operating in 2006 and after the demise of Mexicana de Aviacion, it grew exponentially.

The airline transported 12 million passengers in 2019. It is the fourth most important carrier in Mexico. Volaris, on the other hand, transported more than 20 million passengers and Interjet more than 15 million passengers.

Between these three airlines, the low-cost model is currently expanding in the country. Such is the presence of the model that Grupo Aeromexico, a traditional legacy carrier, has presented some offers that resemble the low-cost approach.

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Almost every airport in the country had domestic growth in the number of passengers received. This is because the low-cost carriers are focusing on smaller hubs, on point-to-point routes that allow them to grow while Mexico City’s airport is congested.

Viva Aerobus
Will Viva Aerobus have a great 2020? Photo: Daniel Martínez Garbuno

What can we expect for 2020?

In the final quarter of 2019, Viva launched five seasonal routes to Chicago from smaller Mexican cities such as Michoacan and Zacatecas. It also relaunched seven seasonal routes and started operating new routes connecting Monterrey with La Paz and San Luis Potosí.

During this period, the airline also had a 23% increase in the earnings, with over $200 million USD. It was thanks to an increase of 20.9% in the number of passengers in the quarter.

For 2020, Zuazua said,

“We will maintain focused on strengthening our route and frequency map. Also, we will add eight new A321 airplanes this year starting in May. And we will work with different alliances that enrich the journeys of our travelers.” 

And for the following years, Viva Aerobus also said that it is willing to operate from the new airport that the government is building in a military base. The Mexican government expects to inaugurate this new airport on 21 March 2022.

What do you think of the experience onboard a Viva Aerobus flight? Let us know in the comments.

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