Volaris Reports Financial Results for the Second Quarter 2025

MEXICO CITY, July 21, 2025 (GLOBE NEWSWIRE) — Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE: VLRS and BMV: VOLAR) (“Volaris” or “the Company”), the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central and South America, today reports its unaudited financial results for the second quarter 2025¹.

Second Quarter 2025 Highlights
(All figures are reported in U.S. dollars and compared to 2Q 2024 unless otherwise noted)

• Net loss of $63 million. Loss per American Depositary Shares (ADS) of $55 cents.
• Total operating revenues of $693 million, a 5% decrease.
• Total revenue per available seat mile (TRASM) decreased 12% to $7.80 cents.
• Available seat miles (ASMs) increased by 9% to 8.9 billion.
• Total operating expenses of $715 million, compared with $660 million in the previous year.
• Total operating expenses per available seat mile (CASM) remained essentially flat at $8.05 cents.
• Average economic fuel cost decreased 14% to $2.46 per gallon.
• CASM ex fuel increased 7% to $5.69 cents.
• EBITDAR of $194 million, a 26% decrease.
• EBITDAR margin was 27.9%, a decrease of 8.0 percentage points.
• Total cash, cash equivalents, and short-term investments totaled $788 million, representing 26% of the last twelve months’ total operating revenue.
• Net debt-to-LTM EBITDAR² ratio stood at 2.9x, compared to 2.7x in the previous quarter.

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¹ The financial information, unless otherwise indicated, is presented in accordance with the International Financial Reporting Standards (IFRS).
² Includes short-term investments.

Enrique Beltranena, President & Chief Executive Officer, said: “With improved visibility into second-half demand drivers and ongoing capacity discipline, we are reinstating our full-year guidance for EBITDAR margin, which we now expect in the range of 32% to 33%. Despite external geopolitical headwinds, our flexible business model and resilient cost structure enable us to moderate growth, remaining prudent and aligned with market trends. Going forward, our capacity decisions will remain anchored in two guiding priorities – customer demand and sustained profitability, and we continue to see meaningful opportunities in our business model and our markets to generate long-term value.”

Second Quarter 2025
(All figures are reported in U.S. dollars and compared to 2Q 2024 unless otherwise noted)

Total operating revenues for the quarter amounted to $693 million, a 4.5% decrease, driven by lower unit revenues.

Total capacity, in terms of available seat miles (ASMs), was 8.9 billion, representing an 8.7% increase.

Booked passengers totaled 7.5 million, a 6.3% increase. Mexican domestic booked passengers increased 6.6%, while international booked passengers increased 5.2%.

TRASM declined 12.2% to $7.80 cents, mainly driven by the depreciation of the Mexican peso against the U.S. dollar. Total operating revenue per passenger stood at $92, decreasing 10.2%.

The average base fare per passenger stood at $38, a 23.2% decrease. The total ancillary revenue per passenger was $54, reflecting a 1.9% increase. Ancillary revenues accounted for 58.9% of total operating revenues.

The load factor for the quarter reached 82.4%, representing a 3.1 percentage point decrease.

Total operating expenses were $715 million, compared with $660 million in the previous year.

CASM totaled $8.05 cents, a slight decline of 0.3%.

The average economic fuel cost decreased by 14.0% to $2.46 per gallon.

CASM ex fuel increased 6.7% to $5.69 cents, reflecting strong cost control despite flying fewer ASMs than planned during the quarter, as well as higher maintenance events and aircraft and engine variable lease expenses related to redelivery accruals for scheduled aircraft returns.

Comprehensive financing result represented an expense of $65 million, compared with a $52 million expense in the same period of 2024.

Income tax benefit was $24 million, compared with a $4 million expense registered in the second quarter of 2024.

Net loss in the quarter was $63 million, with a loss per ADS of $55 cents.

EBITDAR for the quarter was $194 million, a 25.7% decline. EBITDAR margin stood at 27.9%, down by 8.0 percentage points.

Balance Sheet, Liquidity, and Capital Allocation

As of June 30, 2025, cash, cash equivalents and short-term investments were $788 million, representing 26.1% of the last twelve months’ total operating revenue.

Net cash flow provided by operating activities was $136 million. Net cash flow used in investing and financing activities was $16 million and $197 million, respectively.

The financial debt amounted to $742 million, reflecting an 8.4% decrease compared to the end of 2024, while total lease liabilities remained essentially flat at $3,057 million.

Net debt-to-LTM EBITDAR⁶ ratio stood at 2.9x, compared to 2.7x in the previous quarter and 2.6x at the end of 2024.

The average exchange rate for the period was Ps.19.54 per U.S. dollar, reflecting a depreciation of 13.6% of the Mexican peso. The end-of-period exchange rate stood at Ps.18.89 per U.S. dollar, compared with Ps. 20.32 per U.S. dollar at the end of the first quarter of 2025.

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⁶ Includes short-term investments.

2025 Updated Guidance

For the full year 2025, the Company expects:

For the third quarter of 2025, the Company expects:

The full year and third quarter 2025 outlooks presented above include the compensation that Volaris expects to receive for the projected grounded aircraft resulting from the GTF engine inspections, in accordance with the Company’s agreement with Pratt & Whitney.

The Company’s outlook is subject to unforeseen disruptions, macroeconomic factors, or other negative impacts that may affect its business and is based on several assumptions, including the foregoing, which are subject to change and may be outside the control of the Company and its management. The Company’s expectations may change if actual results vary from these assumptions. There can be no assurances that Volaris will achieve these results.

Fleet

During the second quarter, Volaris retired one A319ceo aircraft and added four A320neo’s, and one A321neo to its fleet, bringing the total number of aircraft to 149. At the end of the quarter, Volaris’ fleet had an average age of 6.5 years and an average seating capacity of 198 passengers per aircraft. Of the total fleet, 63% of the aircraft are New Engine Option (NEO) models.

Investors are urged to carefully read the Company’s periodic reports filed with or provided to the Securities and Exchange Commission, for additional information regarding the Company.

Investor Relations Contact
Ricardo Martínez / ir@volaris.com

Media Contact
Israel Álvarez / ialvarez@gcya.net

About Volaris

*Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (“Volaris” or “the Company”) (NYSE: VLRS and BMV: VOLAR) is an ultra-low-cost carrier, with point-to-point operations, serving Mexico, the United States, Central and South America. Volaris offers low base fares to build its market, providing quality service and extensive customer choice. Since the beginning of operations in March 2006, Volaris has increased its routes from 5 to more than 221 and its fleet from 4 to 151 aircraft. Volaris offers more than 500 daily flight segments on routes that connect 44 cities in Mexico and 29 cities in the United States, Central and South America, with one of the youngest fleets in Mexico. Volaris targets passengers who are visiting friends and relatives, cost-conscious business and leisure travelers in Mexico, the United States, Central, and South America. For more information, please visit ir.volaris.com. Volaris routinely posts information that may be important to investors on its investor relations website. The Company encourages investors and potential investors to consult the Volaris website regularly for important information about Volaris.

Forward-Looking Statements

Statements in this release contain various forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which represent the Company’s expectations, beliefs, or projections concerning future events and financial trends affecting the financial condition of our business. When used in this release, the words “expects,” “intends,” “estimates,” “predicts,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “potential,” “outlook,” “may,” “continue,” “will,” “should,” “seeks,” “targets” and similar expressions are intended to identify forward-looking statements. Similarly, statements describing the Company’s objectives, plans or goals, or actions the Company may take in the future are forward-looking. Forward-looking statements include, without limitation, statements regarding the Company’s outlook, the expectation of receiving certain compensation in connection with the GTF engine removals, and the anticipated execution of its business plan and focus on its 2025 priorities. Forward-looking statements should not be read as a guarantee or assurance of future performance or results. They will not necessarily be accurate indications of the times at or by which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time concerning future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Forward-looking statements are subject to several factors that could cause the Company’s actual results to differ materially from the Company’s expectations, including the competitive environment in the airline industry, the Company’s ability to keep costs low; changes in fuel costs, the impact of worldwide economic conditions on customer travel behavior; the Company’s ability to generate non-ticket revenue; and government regulation. The Company’s U.S. Securities and Exchange Commission filings contain additional information concerning these and other factors. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date of this release. You should not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

Supplemental Information on Non-IFRS Measures

We evaluate our financial performance by using various financial measures that are not performance measures under International Financial Reporting Standards (“non-IFRS measures”). These non-IFRS measures include CASM, CASM ex fuel, Adjusted CASM ex fuel, EBITDAR, Net debt-to-LTM EBITDAR, Total cash, cash equivalents and short-term investments. We define CASM as total operating expenses by available seat mile. We define CASM ex fuel as total operating expenses by available seat mile, excluding fuel expense. We define Adjusted CASM ex fuel as total operating expenses by available seat mile, excluding fuel expense, aircraft and engine variable lease expenses and sale and lease back gains. We define EBITDAR as earnings before interest, income tax, depreciation and amortization, depreciation of right of use assets and aircraft and engine variable lease expenses. We define Net debt-to-LTM EBITDAR as Net debt divided by LTM EBITDAR. We define Total cash, cash equivalents and short-term investments as the sum of cash, cash equivalents and short-term investments.

These non-IFRS measures are provided as supplemental information to the financial information presented in this release that is calculated and presented in accordance with International Financial Reporting Standards (“IFRS”) because we believe that they, in conjunction with the IFRS financial information, provide useful information to management’s, analysts and investors overall understanding of our operating performance.

Because non-IFRS measures are not calculated in accordance with IFRS, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related IFRS measures presented in this release and may not be the same as or comparable to
similarly titled measures presented by other companies due to possible differences in the method of calculation and the items being adjusted.

We encourage investors to review our financial statements and other filings with the Securities and Exchange Commission in their entirety for additional information regarding the Company and not to rely on any single financial measure.