Airlines record jet fuel losses – The Sun Post

Airlines record jet fuel losses – The Sun Post

The two major Mexican airlines, Aeroméxico and Volaris, reported losses in the first quarter of the year, due to higher operating costs due to the increase in fuel.

Grupo Aeroméxico recorded a loss of three thousand and 94.3 million pesos in the first quarter of the year due to effects such as the epidemic, exchange rate, inflation and others. The airline said in its financial report that it was affected between January and last March by the Ómicron formula, which caused flight cancellations and delays, in addition to the depreciation of the peso against the dollar and an increase in the cost of fuel by 66 percent. .

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He also noted that general inflation of 7.45 percent at the end of March had an impact on the company’s costs. Volaris, for its part, reported a loss of $49 million, mainly caused by a 70 percent increase in total operating expenses for the quarter.

The low-cost airline highlighted that the cost of fuel rose by 64 percent due to geopolitical conflicts in Eastern Europe. Likewise, attribute the effects to the depreciation of the exchange rate.

Despite this, both companies that report on the Mexican Stock Exchange (BMV) have reported increases in their income of more than 80 percent compared to the first quarter of 2021.

The companies, which expanded their domestic operations in March to Phillip Angeles International Airport (AIFA), reported a rebound in demand from air travelers.

In this regard, President Andres Manuel Lopez Obrador stated that he spoke with Eduardo Tricio, CEO of Aeroméxico, in order for the company to open new paths in AIFA.

The airline stated that from Sunday it will start a new operation from the new airport to Puerto Vallarta, and that it will reduce its frequency to Villahermosa due to lack of demand.

In the first 10 days of AIFA’s operations, Mexican airlines carried an average of just 23 passengers per day on its route with Villahermosa, according to data from the Federal Civil Aviation Agency (AFAC).

Caballero Águila declined to comment on what the head of the federal executive said. Lopez Obrador said his government would urge Volaris and Viva Aeropus to open more routes from the new air terminal.

The two companies ruled out responding to the president’s comments. Only Volaris indicated that it announced its intention to increase operations to the US from AIFA, where 13,812 passengers were mobilized between March 21 and 31.

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