Mexican low-cost carrier Volaris expects reduce its full-year capacity in terms of available seat miles (ASM) by between 16-18% in 2024 as it contends with increased inspections of some of the Pratt & Whitney PW1100G geared turbofans (GTFs) powering its Airbus A320neo-family jets.
In October Volaris said about 73 aircraft – 51 Airbus A320neos and 22 A321neos – in its 126-strong fleet may be affected by the engine recall over the coming years. Volaris at that time had 16 of the Airbus narrowbodies grounded due to the problem.
Volaris has now issued first-quarter and full-year guidance for 2024, both of which estimate ASM capacity will be reduced by between 16-18%. By contrast the airline increased capacity nearly 18% in the first quarter of 2023, though this fell to an increase of 10% for the year as a whole.
”For 2024, Volaris remains focused on executing its business plan to serve robust demand in its domestic and international markets and drive profitable growth despite constraints due to accelerated GTF engine preventive inspections,” the airline says.
Volaris is targeting an EBITDAR profit margin of between 31-33% for 2024. That marks an increase on the approximately 26% EBITDAR margin it is guiding for 2023, and includes expected compensation from a deal Volaris reached with Pratt & Whitney in December in relation to projected grounded aircraft resulting from the GTF engine removals.
