Volaris holds an optimistic view despite a tough 1H2014 in Mexico’s domestic aviation market

Mexico's second largest airline Volaris joined rival and the country's biggest airline Aeromexico in recording a 2Q2014 loss driven by lingering weakness in the Mexican economy which is dissolving pricing traction.

Despite the operating and net losses Volaris recorded in 2Q2014, the airline highlighted sequential improvement in it results from 1Q2014, and is cautiously optimistic that Mexico's economy could be showing slight signs of improvement.

In early 2014 Volaris shaved its capacity growth estimates for the year, and is maintaining its current projections of 11% to 13% growth. During 3Q2014 the bulk of Volaris' supply is targeted toward US transborder international markets, routes where it is more shielded from competition versus the domestic space.