Volaris: Mexican economy stable, with rising consumer confidence

    Volaris described (25-Jul-2019) 2Q2019 market conditions as follows:

    • Macroeconomics and domestic consumer demand: Macroeconomic indicators in Mexico were stable, with same store sales increasing 4.8% year-on-year, remittances increasing 2.5% in Apr-2019 and May-2019 and the Mexican consumer confidence balance indicator increasing 22%;
    • Air traffic: Mexico DGAC reported an 11.2% increase in passenger volume for Mexican carriers in Apr-2019 and May-2019. Domestic overall passenger volume increased 10.7%, while international overall passenger volume increased 3%;
    • Exchange rate: The MXN appreciated 1.3% against the USD, from an average exchange rate of MXN19.37/USD1 in 2Q2018 to MXN19.12/USD1 2Q2019. At the end of 2Q2019, the MXN appreciated 1.1% against 1Q2019. Volaris reported a foreign exchange gain of MXN3 million (USD157,400) as a consequence of USD net monetary liability position, resulting from the adoption of IFRS16;
    • Fuel prices: Average fuel cost increased 8%, reaching MXN48.9 (USD2.6) per gallon. [more – original PR]