Volaris announced on Apr. 29 that it will increase fares and reduce flight frequencies in response to higher jet fuel prices.
The airline said these measures are intended to help offset the impact of increased fuel costs, which have been affected by global events. The changes are expected to affect both domestic and international routes, with particular emphasis on transborder flights.
Holger Blankenstein, executive vice president of Volaris, said the company will combine a fare adjustment with a consolidation of flights in order to preserve cash. “The international market has shown less elasticity and in the domestic market demand has proven resilient to fare adjustments,” Blankenstein said during a conference call with analysts about the company’s financial results.
In addition to ticket price increases, Volaris will also raise prices for ancillary services. The airline clarified that while some flight frequencies will be reduced as a tactical measure, no routes will be canceled so connectivity can be maintained for passengers during certain periods. Capacity is set to decrease by two percentage points in April and nine percentage points in May, with further reductions anticipated for June and the second half of the year.
Volaris reported a net loss of $71 million for the first quarter. Operating revenues reached $770 million—an increase of 14 percent—while operating expenses totaled $791 million compared with $688 million over the same period last year. The average cost of fuel rose by 16 percent, reaching $3.06 per gallon.
“Our first quarter results reflect disciplined execution, strengthening revenue quality, optimizing capacity allocation and maintaining strong cost control in a more challenging fuel environment,” Blankenstein said. He added that conflict in the Middle East has contributed to higher prices for fuels including jet fuel.
