Traxion increases passenger transport due to Covid-19

The company Traxion recorded a 10.8% year-on-year increase in its income from the passenger transport segment in 2020, to 5,558 million pesos.

More than anything, this increase is due to the increase in the capacity of existing clients due to healthy distance measures, particularly in the industrial sector, and to commercial efforts implemented by the company, which generated the acquisition of new clients.

The foregoing resulted in an increase in demand in this segment, which has been covered mainly with the fleet dedicated to schools and with the rental of third-party units.

Specifically, revenue per kilometer grew 6.1 percent.

At the same time, the net profit of the school and personnel transportation segment totaled 317.6 million pesos in 2020, an advance of 66.4% year-on-year.

Passenger transport

The school and personnel transportation segment provides transportation services for people to corporations, industrial parks and hotels, as well as transportation of students from schools and universities, and tourism services to groups.

Through its subsidiary Transportes Lipu, Traxion operates a centralized platform under dedicated contracts or spot service with the largest and most modern fleet in Mexico.

In 2020, the company’s average fleet was 5,473 vehicles, a higher number than the 5,364 units the previous year.

This type of service represented 38.9% of its total revenues in 2020.

When the Covid-19 contingency began in Mexico, schools closed and some corporations began to promote work at home, which caused a portion of Traxion’s fleet in this segment to remain idle.

On the other hand, several of its customers in segments such as consumption, food, beverages and self-service that did not stop their operations, required incremental capacity in the personnel transport service derived from the social distancing measures that came into force, therefore the company was able to place the idle fleet to meet these needs.