Mexican Airline Viva Aerobus to Go Public in the US

Following a year in which the aviation industry was at a standstill and uncertainty was a common thread, one company in the sector seems to be taking off. Mexican airline Viva Aerobus is planning an initial public offering in the US this year, people with knowledge of the matter told Bloomberg. The airline known for its low-cost deals is working with Barclays, Goldman Sachs Group and JPMorgan Chase.

Despite the severe blow the pandemic dealt to all airlines, both Volaris and Viva Aerobus have increased their market share and surpassed other Mexican airlines with an increase of 7.1 percent and 4.2 percent in domestic travel during 2021, compared to the previous year, according to data from the Ministry of Communications and Transport (SCT). The domestic market is now dominated by Volaris, which holds a 38.4 percent share, followed by Aeromexico with 25.3 percent, Viva Aerobus with 24.4 percent and Interjet with 8.8 percent. In May 2021, Viva Aerobus recorded traffic of 1.34 million passengers, a one-month all-time high, increasing by 35 percent compared to the same period in 2019. Year-to-date, the airline has served more than 5 million passengers.

Viva Aerobus has introduced new offerings in line with its low-cost approach. The Zero Fare, introduced in 2020, offers a special travel fare for those who do not need to carry checked or carry-on baggage. The company also introduced a new payment scheme called ‘TU Aliado’ (Your Ally), which allows passengers to book a flight and defer up to 60 percent of its total cost by delaying the payment of the Airport Departure Tax (TUA) until the departure of the flight.

In early June, the Ministry of Tourism (SECTUR) informed that the summer holiday season, which runs from July to August, is expected to see a 125 percent increase in the supply of airline tickets for trips from the EU. According to the Official Airline Guide, in this period there will be a supply of 820,929 airline seats for flights from the EU to Mexico, meaning an increase of 125.8 percent compared to the same two-month period last year, when it stood at 457,416 seats.