Mexican low-cost carrier Volaris incurred losses of over 800 million pesos ($56 million) in its first 27 months of operations but has been profitable since the middle of last year.
Volaris, which launched operations in March 2006, revealed in a filing with the US DOT today net losses of 310 million pesos in 2006 and 260 million pesos in 2007. The carrier also has revealed net losses of 105 million pesos in the first quarter of 2008 and 148 million pesos in the second quarter of 2008.
But Volaris turned the corner in the third quarter of last year, turning a 202 million peso net profit. Volaris did not provide the DOT with information for the fourth quarter but Volaris CEO Enrique Beltranena tells ATI the carrier was profitable on an EBIT basis in December 2008 as well as January 2009.
Beltranena also says reports in the Mexican media that the carrier is seeking a recapitalisation are "completely unfounded". He adds: "Volaris does not need and will not obtain any capital from its shareholders beyond what has always been planned for in the original budget for the deployment of our business plan."
In an interview with ATI in August, Beltranena said the last capital injection occurred in early 2008, when the carrier's four owners provided another $48 million. He said at the time another injection would not be needed because the carrier expected to be "at least break even" in 2008.
In today's filing while Volaris reveals while it was in the red on a net basis in the first half of the year it was steadily in the black on an operating basis. The carrier turned operating profits of 37 million pesos in the first quarter, 44 million pesos in the second quarter and 350 million pesos in the third quarter. Revenues through the first three quarters were 3.2 billion pesos.
In 2007, its first full year of operation, Volaris had an operating loss of 396 million pesos on revenues of 2.4 billion pesos. In 2006 Volaris incurred an operating loss of 337 million pesos on revenues of 916 million pesos.
Volaris was required to provide the financial data in order to demonstrate its financial fitness to the DOT, a prerequisite for securing permission from US authorities to operate into the US. Volaris, as reported by ATI earlier today, is seeking to launch services from Toluca outside Mexico City to Fort Lauderdale by the end of June.
Volaris currently operates to 21 domestic destinations with a fleet of 19 Airbus A319s and two A320s.