After Pratt & Whitney (P&W) requested a rapid inspection of GTF aircraft engines last July, Volaris CEO Enrique Beltraña noted that while they work to minimize the impact, the company expects a slowdown in its growth while the process winds down.
The company’s president also stated that operating income for this year would reach $3.2 billion, while the amount in the company’s previous guidance ranged between $3.2 billion and $3.4 billion, based on available information.
However, Beltranina explained that Volaris has adjusted its EBITDA margin forecast for 2023 and the profit margin is expected to reach about 26%, due to the ongoing fluctuations in fuel prices and their impact on production capacity, while the company is going through unexpected events derived From inspection. drivers, as well as their estimated impact on network and profitability.
Read: Volaris suspends flights to and from Guatemala due to post-election protests
“The Volaris team is actively implementing plans to mitigate the impact of the engine inspection, including a project to improve our route network. Volaris expects the company’s growth to slow while the required inspection is completed,” said its director.
The company also lowered its capacity growth estimates for this year from 13% to 10%, in addition to capital expenditures or investments in capital goods by about $300 million to make advance payments for the purchase of aircraft.
Despite this announcement, the company’s shares closed on the Mexican Stock Exchange (BMV) on Tuesday up 4.43% at the end of the day, at 12.25 pesos per unit.