Volotea: growing in a space between LCCs and regional airlines
Volotea, labelled a Spanish low cost airline, is not what it seems. The airline has more capacity in France and Italy than it has in Spain.
Moreover, it does not look and feel like other low cost carriers, such as Ryanair, Wizz Air and easyJet. On a number of strategic dimensions it sits between Europe's leading LCCs and regional airlines - just look at its average trip length, seats per flight and frequencies per route.
Although (as it did to all airlines) the COVID-19 pandemic hit Volotea hard, the airline shrank by less than the market and has grown back more rapidly. Volotea's 2022 seat capacity was 130% of its 2019 level, contrasted with a Europe average of 82%.
If Volotea can return to profit, the niche it has carved out for itself between LCCs and regional airlines should appeal to investors when it seeks an IPO in two to three years from now (from 2023).
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