In September 2023, Volaris’ capacity (measured in ASMs) increased by 7.5% year-over-year, while demand (measured in RPMs) increased by 3.1%; the result was a load factor decrease of 3.6 pp YoY to 83.8%. Volaris transported 2.5 million passengers during the month, a 0.6% decrease compared to September 2022. Demand (measured in RPMs) in the Mexican domestic market decreased by 4.6%, while in the international market, demand increased by 22.4%.
During the third quarter of 2023, the average economic fuel cost was $3.16 per gallon, an increase of 17% compared to the second quarter of 2023.
Enrique Beltranena, Volaris’ President and CEO, said: “On July 25th, 2023, RTX Corporation, the parent company of Pratt & Whitney (“P&W”), requested accelerated inspections of GTF engines. The accelerated inspection program will include engines in our fleet. The Volaris team is actively executing plans to mitigate the engine inspection impact, including a project to optimize our route network. We anticipate our growth rate will slow while we work through the required engine shop visits.
We will continue to modify our plans as we get more detail from P&W, but based on the current information we have, we expect Total Operating Revenues for the full-year of 2023 to reach approximately $3.2 billion and CASM ex-fuel to be $4.8 cents, in line with prior guidance. However, we now forecast an EBITDAR margin for 2023 of approximately 26%, given the continuing volatility in jet fuel prices and the effect on ASM production as we work through the engine issues and its projected impact on our network and profitability."