Mexican budget carrier Viva Aerobus plans US IPO

[MEXICO CITY] Budget airline Grupo Viva Aerobus SAB is planning a US initial public offering as soon as this year, according to people with knowledge of the matter.

The Mexico City-based carrier is working with Barclays Plc, Goldman Sachs Group Inc and JPMorgan Chase & Co on a listing, the people said, asking not to be identified discussing private information.

Representatives for Viva Aerobus, Barclays and Goldman Sachs declined to comment. A spokesperson for JPMorgan didn't immediately respond to a request for comment.

With coronavirus vaccines continuing to be rolled out globally, the resumption of travel has boosted airline stocks. The Bloomberg World Airlines Index has risen 7.1 per cent this year and is up 41 per cent from a year ago.

Viva is now Mexico's third-largest airline by passengers, according to May travel data, the latest available. In the domestic market alone, Viva Aerobus has surpassed legacy carrier Grupo Aeromexico SAB, which is dealing with a Chapter 11 filing.

The airline said in a statement this month that its passenger count in the first five months of the year rose 35 per cent to 1.34 million from the same period last year, topping pre-pandemic levels.

Mexican carriers, unlike their US counterparts, didn't receive government aid to help them through the coronavirus pandemic.

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