Mexican budget carrier Viva Aerobus plans US IPO

Budget airline Grupo Viva Aerobus SAB is planning a U.S. 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% this year and is up 41% 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% to 1.34 million from the same period last year, topping pre-pandemic levels.

Mexican carriers, unlike their U.S. counterparts, didn’t receive government aid to help them through the coronavirus pandemic.