Angeline Andel

Angeline Andel asked about Volaris' reported tax rate of 89% in Q4 2025, seeking clarification on its key drivers. She also inquired about the breakdown of the 7% capacity growth for 2026 between domestic and international markets.

Answer

Jaime Pous, CFO, clarified that the Q4 tax rate was an adjustment to reflect the full-year effective tax rate of 11.8%, advising analysts to model with a 30% rate. Holger Blankenstein, Executive Vice President, stated that 2026 capacity growth would be skewed towards international markets, with domestic growth in the low to mid-single digits, emphasizing flexibility based on demand.

Angeline Andel asked about the key drivers behind Volaris' reported tax rate of 89% in the fourth quarter of 2025 and inquired about the expected domestic versus international mix for the 7% capacity growth planned for 2026.

Answer

CFO Jaime Pous clarified that the 89% tax rate was an adjustment in the fourth quarter to reflect the full-year effective tax rate of 11.8%, recommending 30% for modeling purposes. Executive Vice President Holger Blankenstein explained that the 7% capacity growth for 2026 would be skewed towards international markets, with domestic growth in the low to mid-single digits, noting flexibility to adjust based on demand trends.