Most airlines worldwide are only just recovering from the COVID-19 crisis, with many carrying fewer passengers overall compared to 2019, prior to the pandemic. In Mexico, though, an ultra-low-cost carrier has managed to increase its passenger numbers by a whopping 70% in this period. This airline is Viva Aerobus.
Viva Aerobus has carried 16.74 million passengers in 2022.
Viva Aerobus in a glance
Mexico has three main carriers; two of them operate under the ultra-low-cost model, Volaris and Viva Aerobus. The third airline is Aeromexico, a legacy operator. Viva Aerobus launched operations in November 2006. It was first based at Monterrey International Airport (MTY), a hub located in northern Mexico, near the border with Texas.
While now Viva Aerobus operates with an Airbus A320-family-based fleet, at some point in its early days, Viva flew with Boeing 737 aircraft. The ultra-low-cost carrier currently operates 66 aircraft and expects to receive 31 additional narrowbodies in the next few years.
With this fleet, Viva Aerobus has managed to go toe to toe with larger Mexican carriers such as Aeromexico (140+ aircraft) and Volaris (115 aircraft). For instance, in 2022, Viva Aerobus has carried more domestic passengers than Aeromexico, as the legacy carrier focuses more on the international segment.
A recipe for success in a post-COVID environment?
Between 2019 and 2022, Viva Aerobus has managed to increase by 70% the number of carried passengers. As of October 2022, Viva Aerobus carried 16.74 million passengers, according to data released on Friday by the company. This number has been fueled by an incredible 86% load factor throughout the year.
The airline had a few things going in its favor in the last few years to fuel this incredible growth. These are:
- The lack of COVID-19 travel restrictions allowed the Mexican aviation industry to recover faster than most other countries worldwide.
- Interjet’s disappearance. The low-cost carrier had 15 million passengers in 2019 and was the country’s third-largest airline. Ceasing operations left a gap for the taking, mostly seized by Volaris and Viva Aerobus.
- Aeromexico’s Chapter 11 allowed Mexican ULCCs to seize a bigger market share while Aeromexico was financially reorganized.
- An area of opportunity was found in new markets such as Colombia, while Mexico faces a Category 2 degradation in the United States.
Additionally, Viva Aerobus has emphasized increasing ancillary revenue and has launched initiatives such as Doters, its new loyalty program.
What’s next for Viva Aerobus?
Viva Aerobus expects to keep growing, launching new routes. Additionally, it is waiting for approval from US and Mexican authorities on its partnership with US ultra-low-cost carrier Allegiant Air. This joint venture would be the first among low-cost carriers in North America and would allow them to employ their complementary route networks to increase transborder service to popular vacation destinations.
Doters, the new loyalty program, will be essential to Viva’s customer-centric, data-driven, and digital strategy, enabling the company to make smarter customer decisions by increasing digital adoption and improving customer retention, said the airline.
Finally, in terms of demand, the airline saw a favorable environment and solid year-end booking trends, which has allowed the airline to match its capacity with demand.
“We expect these trends to support a strong performance outlook in our markets. Our ultra-low-cost model continues to drive our decisions, focusing on maintaining a disciplined approach to capacity and growing our ancillary revenues. We continue to expand our route network and strengthen our presence in the Mexico City metropolitan area,” said Juan Carlos Zuazua, CEO of Viva Aerobus.
SOURCE:Simple Flying