Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS) Company Report

Analyst Coverage

Research analysts who have asked questions during Controladora Vuela Compania de Aviacion, S.A.B. de C.V. earnings calls.

Duane Pfennigwerth

Evercore ISI

5 questions for VLRS

Also covers: AAL, AERO, ALGT +19 more

Jens Spiess

Morgan Stanley

5 questions for VLRS

Also covers: AERO, ASR, CPA +2 more

Thomas Fitzgerald

TD Cowen

5 questions for VLRS

Also covers: AAL, ALGT, ALK +8 more

Guilherme Mendes

J.P. Morgan Chase & Co.

4 questions for VLRS

Also covers: AERO, ASR, AZUL +5 more

Rogério Araújo

Bank of America

4 questions for VLRS

Also covers: AZUL, CPA, TIMB +1 more

Alberto Valerio

UBS Group AG

3 questions for VLRS

Also covers: ASR, AZUL, CPA +4 more

Michael Linenberg

Deutsche Bank

3 questions for VLRS

Also covers: AAL, AERO, ALGT +13 more

Pablo Monsivais

Barclays

3 questions for VLRS

Also covers: AERO, ASR, CPA +3 more

Stephen Trent

Citigroup Inc.

3 questions for VLRS

Also covers: AAL, AER, AL +14 more

Abraham Fuentes Salinas

Santander

2 questions for VLRS

Also covers: OMAB, PAC, VTMX

Angeline Andel

Deutsche Bank

2 questions for VLRS

Jacob

TD Cowen

2 questions for VLRS

Also covers: ARVN, EXPE

Shannon Doherty

Deutsche Bank

2 questions for VLRS

Also covers: AAL, AER, ALK +4 more

Jay Singh

Citigroup

1 question for VLRS

Also covers: CAAP, PAC

Rafael

UBS

1 question for VLRS

Rafael Simonetti

UBS Group AG

1 question for VLRS

Also covers: CPA, PAC

Ricardo Alves

Morgan Stanley

1 question for VLRS

Also covers: ABEV, FMX, JBS +3 more

Steve Trent

Citi

1 question for VLRS

Latest news

Recent press releases and 8-K filings for VLRS.

Volaris Reports Q4 and Full-Year 2025 Results, Provides 2026 Guidance, and Updates on Viva Merger

VLRS

Earnings

Guidance Update

M&A

Volaris reported Q4 2025 total operating revenues of $882 million and a net profit of $4 million (EPS of $0.04 per ADS), with full-year 2025 total operating revenues reaching $3 billion and an EBITDA margin of 32.5%.
For full-year 2026, the company guides for ASM growth of around 7% and an EBITDA margin of approximately 33%, with CapEx projected at $350 million.
The company expects its net debt to EBITA ratio to improve from 3.1 times at Q4 2025 to approximately 2.6 times by the end of 2026.
Volaris is at an inflection point for Aircraft on Ground (AOGs), anticipating a reduction from a January peak of 41 aircraft to approximately 25 AOGs by year-end 2026, supporting increased fleet productivity.
The regulatory process for the proposed airline group agreement with Viva is moving forward, with an expected review period of up to 12 months from the merger announcement date.

3 days ago

Transcript

Volaris Reports Q4 and Full Year 2025 Results, Provides 2026 Guidance

VLRS

Earnings

Guidance Update

M&A

Volaris reported Q4 2025 total operating revenues of $882 million, a 5.6% increase year-over-year, and a net profit of $4 million. For the full year 2025, total operating revenues were $3 billion, a 3% decrease, leading to a net loss of $104 million.
The company issued full-year 2026 guidance, projecting ASM growth of around 7% and an EBITDA margin of approximately 33%, with CapEx net of finance lead pre-delivery payments of approximately $350 million.
Volaris is actively managing engine-related Aircraft on Ground (AOG) issues, which peaked at 41 aircraft in January 2026, and expects a reduction to approximately 25 AOGs by year-end 2026.
The proposed airline group agreement with Viva is undergoing regulatory review, anticipated to conclude within 12 months from the merger announcement date.
The net debt to EBITA ratio stood at 3.1x at the end of Q4 2025, with a target to reduce it to approximately 2.6x by year-end 2026, supported by improving earnings and fleet productivity.

3 days ago

Transcript

Volaris Reports Q4 and Full Year 2025 Results, Provides 2026 Guidance, and Addresses AOGs

VLRS

Earnings

Guidance Update

M&A

Volaris reported Q4 2025 total operating revenues of $882 million and a net profit of $4 million, contributing to a full-year 2025 net loss of $104 million on $3 billion in total operating revenues.
For 2026, the company expects ASM growth of around 7% and an EBITDA margin of approximately 33%, with CapEx projected at $350 million.
Volaris anticipates a significant reduction in Aircraft on Ground (AOGs), from a January peak of 41 aircraft to approximately 25 by year-end 2026, aiming to improve fleet productivity and financial performance.
The net debt to EBITA ratio is forecast to decrease from 3.1 times at Q4 2025 to approximately 2.6 times by the end of 2026.
The regulatory process for the proposed airline group agreement with Viva is moving forward, with responses to the first round of information requests already filed.

3 days ago

Transcript

Volaris Reports Q4 and Full Year 2025 Financial Results, Provides Q1 2026 Guidance, and Announces Proposed Airline Group Formation

VLRS

Earnings

Guidance Update

M&A

For the fourth quarter of 2025, Volaris reported net income of $4 million and a 5.6% increase in total operating revenues to $882 million, achieving an EBITDAR margin of 37.2%.
For the full year 2025, the company recorded a net loss of $104 million on total operating revenues of $3,038 million, which was a 3.3% decrease year-over-year, with an EBITDAR margin of 32.5%.
Volaris provided Q1 2026 guidance, projecting ~3% year-over-year ASM growth, TRASM of ~$8.50 cents, CASM ex fuel of ~$6.00 cents, and an EBITDAR margin of ~25%.
In December 2025, Volaris announced a proposed agreement to form a new Mexican airline group with Grupo Viva Aerobus, pending regulatory approvals and expected to close in 2026.
As of December 31, 2025, Volaris held $774 million in total cash, cash equivalents, and short-term investments, with a net debt-to-LTM EBITDAR ratio of 3.1x.

3 days ago

6-K

Volaris Reports January 2026 Traffic Results

VLRS

Demand Weakening

Volaris reported its January 2026 preliminary traffic results, with a consolidated load factor of 84.8%, representing a decrease of 1.8 percentage points year-over-year.
The company transported 2.7 million passengers in January 2026, while ASM capacity increased 4.3% and RPMs grew 2.1%.
Domestic RPMs declined 1.1%, whereas international RPMs increased 6.7%.
Volaris' President and CEO, Enrique Beltranena, noted that traffic trends were consistent with those observed during the fourth quarter, with international capacity maturing and showing sequential improvement in VFR demand.

Feb 9, 2026, 2:14 PM

6-K

Volaris Reports December 2025 Traffic Results

VLRS

Demand Weakening

Volaris reported its preliminary traffic results for December 2025 on January 8, 2026.
The consolidated load factor for December 2025 decreased by 3.5 percentage points year-over-year to 84.1%.
In December 2025, Available Seat Miles (ASM) capacity increased 9.5%, and Revenue Passenger Miles (RPMs) grew 5.1%.
Volaris transported 3.0 million passengers during December 2025.
CEO Enrique Beltranena noted a return to historical seasonality and recovery in the cross-border Visiting Friends and Relatives (VFR) market, but domestic ASMs were lower than planned due to prolonged severe weather at the Tijuana airport.

Jan 8, 2026, 2:00 PM

6-K

Volaris and Viva Announce Proposed Formation of New Airline Group

VLRS

M&A

New Projects/Investments

Volaris and Viva announced the proposed formation of a new airline group, Grupo Más Vuelos, through a merger of equals, with each shareholder group owning 50%. The new holding company will remain publicly listed on the New York Stock Exchange and Mexican Stock Exchange under a new ticker, while both airlines will retain their distinct brands and Air Operator Certificates.
The combined entity will operate a fleet of over 250 new-generation Airbus A320 Family aircraft and has a combined order book of more than 200 aircraft, estimated to reach $14 billion over the coming years.
The transaction is expected to create significant efficiencies, including reduced aircraft ownership costs, which currently account for 33%-35% of both carriers' costs, and will result in a pro forma leverage of 2.7 times EV/EBITDA. This structure aims to improve access to capital and strengthen the balance sheet.
The new airline group is intended to accelerate growth in air travel in Mexico and internationally by leveraging economies of scale, expanding destinations, and maintaining low fares.
The transaction is anticipated to close within the next 12 months, pending shareholder approval and regulatory approvals in Mexico, Colombia, and the U.S..

Dec 19, 2025, 3:00 PM

Transcript

Volaris and VIVA Announce Proposed Airline Group Formation

VLRS

M&A

New Projects/Investments

Volaris and VIVA have announced a proposed merger of equals to form a new airline group, with each shareholder group owning 50% of the combined entity.
The new holding company, to be renamed Grupo Mas Vuelos, will remain publicly listed on the New York Stock Exchange and Mexican Stock Exchange under a new ticker, with the transaction expected to close within the next 12 months.
The group will operate Volaris and VIVA as separate brands, leveraging a combined fleet of over 250 new-generation Airbus A320 Family aircraft and a pro forma net debt to EBITDA leverage of 2.7 times.
Key benefits are anticipated from economies of scale, including lower aircraft ownership costs, improved access to capital, and an expanded network of over 320 routes serving 85 destinations.

Dec 19, 2025, 3:00 PM

Transcript

Volaris and VIVA Announce Proposed Formation of New Airline Group

VLRS

M&A

New Projects/Investments

Volaris and VIVA announced a proposed formation of a new airline group, Grupo Mas Vuelos, through a merger of equals, with each shareholder group owning 50% of the new entity.
The new group will operate Volaris and VIVA as separate carriers and brands under a holding company structure, aiming to accelerate air travel expansion in Mexico and internationally.
The combined entity will have a fleet of over 250 new-generation Airbus A320 Family aircraft and a combined order book of more than 200 aircraft, estimated to reach $14 billion.
Key benefits include achieving significant economies of scale, reducing aircraft ownership costs (currently 33%-35% of costs), and improving access to capital, resulting in a pro forma net debt to EBITDA of 2.7 times.
The transaction is expected to close within the next 12 months, pending regulatory and shareholder approvals.

Dec 19, 2025, 3:00 PM

Transcript

Volaris and Viva Announce Formation of New Mexican Airline Group

VLRS

M&A

New Projects/Investments

Volaris and Grupo Viva Aerobus have entered into an agreement to create a new Mexican airline group under a holding company structure, with the objective of expanding low-fare travel and connectivity in Mexico and abroad.
The transaction is structured as a merger of equals, where Viva shareholders will receive newly issued shares of the Volaris Holding Company, resulting in each shareholder group owning 50% of the new airline group on a fully diluted basis.
Both Volaris and Viva will retain their current operations under independent operating certificates and unique brands, while the new group aims to achieve enhanced economies of scale, lowered fleet ownership costs, improved access to capital, and a strengthened financial position.
The transaction is subject to regulatory approvals, customary closing conditions, and shareholder approvals, and is expected to close in 2026.