Mexican low-cost carrier Volaris has won shareholder approval to raise up to Ps3.5 billion ($164 million) in capital.
The airline says it is “evaluating different financing alternatives” after shareholders approved the plan at an extraordinary general meeting on 18 September.
Options under consideration are a rights offering, the outright sale of shares and the issuance of debt/convertible debentures in Mexico, the USA and other countries.
“The company’s goal is to obtain the most cost-effective financing structure that delivers both strength to our balance sheet and reaffirms our long-term commitment to employees and shareholders,” adds Volaris, which views the Covid-19 crisis as “an opportunity to ramp up more quickly and strengthen its competitive position”.
The Mexico City-based carrier will determine the terms and conditions of the capital increase “based on the prevailing market conditions at the time of such offering”.
At the end of the second quarter, Volaris had $436 million in liquidity. Its fleet includes 82 leased Airbus narrowbodies, Cirium fleets data shows, and it has 104 A320neo/A321neo aircraft on order.