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

The call was predominantly positive. Volaris exceeded profitability guidance, delivered record quarterly revenue, strengthened unit revenues, improved aircraft utilization and fuel efficiency, reduced debt, preserved liquidity, and expanded its higher-return international network. These positives were partly offset by higher fuel prices, a net loss, ongoing GTF-related aircraft groundings, temporary fleet-transition costs, domestic limitations on fuel-price pass-through, tax-related cost increases, and unresolved regulatory timing for the Viva combination.

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; international ASMs are expected to grow in the high-teens, domestic capacity to decline by mid-single digits, and TRASM to grow approximately 17% year over year. For full year 2026, it expects ASM growth of approximately 5%, an EBITDAR margin of around 21%, CapEx of around $350 million, and cost savings of over $100 million. For full year 2027, it expects low single digit ASM growth, with domestic capacity declining by low to mid single digit decline and the balance being international growth, described also as mid- to low single digit positive growth; AOGs are expected to remain in the low to mid-20s until next summer and probably close next year in around 10 to 15, while the contractual fleet is expected to reach around 137, lease liabilities approximately $2.8 billion, lease payments approximately $50 million lower than in full year 2026, and PDP related equity cash requirements approximately $38 million lower.