Controladora Vuela Compania de Aviacion SAB de CV (2CDA) Q3 2026 Earnings Report

The call was predominantly positive. Volaris exceeded profitability guidance, achieved record quarterly revenue, improved unit revenue, generated strong operating cash flow, reduced debt, and continued progress on fleet recovery and network optimization. These strengths were partly offset by higher fuel costs, elevated total CASM, ongoing aircraft groundings and temporary maintenance-related costs, weaker domestic fuel recapture, higher Mexican navigation costs, and pending regulatory matters.

For the fourth quarter of 26, Volaris expects ASM growth of roughly 4% year over year, TRASM of around 10.99¢, CASM ex fuel of approximately 6.50¢, an EBITDA margin of around 20%, an average foreign exchange rate of around 18.17 per U. S. Dollar, and an average US Gulf Coast jet fuel price of approximately $4.40 per gallon, including approximately $0.4 in nonrecurring costs; for full year 2026, it expects ASM growth of approximately 5% year over year, EBITDAR margin of around 21%, and CapEx of around $350 million. For full year 2027, it expects low single digit ASM growth, with domestic capacity to contract and international capacity to expand; management also described a slight decline, low to mid single digit decline in domestic capacity and said it could grow by 3% or reduce capacity by 3% depending on market conditions. AOGs are expected to remain in the low to mid-20s until next summer, with the situation expected to normalize by mid 28, while lease payments are expected to be approximately $50 million lower than in full year 2026 and lease liabilities to decline from approximately $3.2 billion to $2.8 billion by year end 2027.