The regional airline Volotea, which operates routes between secondary European airports, is accelerating its growth this year to reach cruising speed and go public in 2016, according to company sources. The company, launched in 2012 by Carlos Muñoz and Lázaro Ros, previously founders of Vueling, is entering its fourth year of operations with the ambition of achieving the scale and recognition necessary to attract investors.

The price of crude oil makes the airline sector more profitable and attractive to investors

The step up in 2015 involves the incorporation of four aircraft to complete a fleet of 19 planes and the opening of two new bases, in Asturias and Strasbourg. In this way, it will go from operating 119 routes to a total of 153, nearly 30% more, with a forecast of transporting 2.4 million passengers, 40% more than in 2014. In terms of revenue, the company expects to reach €218 million, 36% more. This year, moreover, the airline will hire more than one hundred people to reach around 600 employees.

Source: Cinco Días

“We have a lot of room to grow because we have no competition; although it is a slower-growth business than other airlines because the aircraft are smaller, it can be very profitable,” argues Carlos Muñoz. Although it does not yet make a profit, he acknowledges, it generates working capital and does not need external capital to finance its growth.

The IPO, an objective of the founders since its launch, will take place next year, according to the company’s plans. In addition, the process is favoured by the sharp drop in fuel prices, which means that “investing in airlines is more attractive for investors because they are now more profitable,” acknowledges Carlos Muñoz, co-founder.

The IPO, which Muñoz places within a timeframe of “between 12 and 18 months”, will be carried out to raise additional financial resources for the company and not to dilute the presence of shareholders. The founders, Muñoz and Ros, currently hold 26% of the capital; 49% is held by the international fund CCMP Capital and the remaining 25% belongs to Axis (ICO) and the local fund Corpfin Capital. Corpfin Capital.