Viva boosts profits with compensation from engine manufacturer

Low-cost airline Viva Aerobus reported that its net profit in the second quarter of 2024 was $34 million, a year-on-year increase of 38.4 percent, driven by the financial compensation it received from engine manufacturer Pratt & Whitney and increased passenger transportation.

In its financial report sent to the Mexican Stock Exchange, Viva Aerobus indicated that, as a result of the review of Pratt & Whitney (P&W) engines, approximately 20 percent of Viva Aerobus aircraft are grounded, for which compensation was sought for the damages, which has already been delivered, although the amount was not specified.

Juan Carlos Zuazua, CEO of the airline, said: “We have navigated these challenges thanks to our resilient and flexible ultra-low-cost business model, as well as disciplined capacity management, which have been crucial to mitigate additional passenger disruptions and maintain profitability. On the positive side, we successfully concluded negotiations with P&W in the second half of Q2 2024, so our financial results reflect a portion of the offset.”

Viva Aerobus reported that its total operating revenue was $612 million, an increase of 34.3 percent; complementary revenue increased 26.8 percent compared to the same period last year, to $283 million, representing 46.3 percent of total revenue.

“During the period in question, Viva Aerobus’s booked passengers increased by 10 percent to 6.8 million, reflecting increased demand in domestic and international markets,” Zuazua said.

As reported by REPORTUR.mxViva Aerobús announced preliminary traffic results for May 2024, where 84.5% was recorded, with a loss of occupancy compared to the same period in 2023, when it reached 86.8%, which complicates its profitability, although they project a positive summer season. (Viva Aerobús continues to lose occupancy and complicates profitability).