Viva Aerobus achieves 58% growth in EBITDAR and 40% in total operating revenue in third quarter 2019

Mexico City, October 24, 2019.- Grupo Viva Aerobus, holding company of Viva Aerobus, Mexico's ultra-low-cost carrier, obtained a increase of 58% in its EBITDAR (Earnings before Interest, Taxes, Depreciation, Amortization and Restructuring or Rent Costs) corresponding to 3Q2019 compared to the same period of the previous year, totaling 1,519 million pesos. The EBITDAR margin also rose 4.4 percentage points up to 38.3%.

This increase in the EBITDAR results, mainly, from the growth in the operating revenue of the quarter by 40%, totaling 3,964 million pesos. This figure was integrated in 62% by passenger revenue (2,442 million pesos) and 38% by ancillary revenue (1,522 million pesos).

Both types of revenues reported double-digit increases. Passenger revenue achieved a growth of 61% and ancillary revenue of 16% compared to 3Q2018. These results also contributed to a 76% increase in operating income, which ended at 597 million pesos at the end of the quarter.

This increase in total revenue, along with a disciplined operating efficiency and the youngest fleet in Mexico -with highly fuel-efficient engines- allowed the airline to compensate for increases in operating expenses. In this way, the operating costs per available seat kilometers remained at only 76.2 cents, one of the lowest in the industry.

“These are tangible results that prove the support of our ultra-low-cost business model, a strategic use of our assets and a high ancillary revenue; which is why we can offer very competitive prices,” explained Gian Carlo Nucci, General Director of Viva Aerobus Group.

This distinctive proposal of Viva Aerobus, whose main identity signs are low prices and a focus on customer, has been the engine behind the increase in revenue, driven by the growth of its passengers.

This quarter the airline achieved a 21% increase in its passenger traffic compared to 3Q2018, having transported more than 3.3 million people with an 88% load factor.

“The growing preference of travelers for Viva´s model is already a trend; this has made us one of the fastest growing airlines. In every month of this year, we have achieved a double digit increase in our passenger traffic. It stands out that in July and August we exceeded one million monthly passengers,” said Juan Carlos Zuazua, CEO of Viva Aerobus.

So far this year (January - September), Viva has already transported 8.7 million customers, aiming to exceed the historical figure of 10 million annual passengers.

Regarding the participation of Viva Aerobus in the domestic market, from January to August, Viva Aerobus achieved a 1.6 percentage point increase; reaching a 19.7% of total national passengers. This consolidated the company as the second fastest growing airline in the national market. In fact, in these 8 months, Viva Aerobus collaborated with 39% of the total increase in domestic passengers in Mexico.

In response to this trend in customer preference, Viva Aerobus maintains a firm expansion strategy. In this regard, this third quarter it increased its capacity with the arrival of two new Airbus A320 and with the announcement of 9 new routes: 5 winter routes to Chicago, the Monterey - Ixtapa seasonal route, the historic #100 domestic route Tijuana - Puerto Vallarta and the Monterrey - San Luis Potosi and Monterrey - La Paz routes. In addition, the available seats - kilometers increased by 29% compared to the third quarter of 2018.

“We are heading towards the end of 2019, close to 13 years of service, directing our efforts to control costs and boost efficiency. Our long-term goals remain unchanged: keep strong levels of profitability, multiply our customers and expand air connectivity at affordable prices,” concluded Gian Carlo Nucci.

To consult the full earnings report for 3Q-2019, please visit Viva Aerobus investor relations site: https://ri.vivaaerobus.com/en