Volaris (VOLARA) Q1 2025 earnings summary

Executive summary

• Reported a net loss of $51 million for Q1 2025, reversing a $33 million profit in Q1 2024, as total operating revenues declined 11.7% year-over-year to $678 million due to peso depreciation and lower revenue per passenger.

• Adjusted capacity and pricing strategies to align with evolving demand, maintaining high load factors and operational reliability.

• Ancillary revenues remained strong, accounting for over 50% of total revenue, supporting the ultra-low-cost model.

• Proactive management of fleet and engine challenges ensured high on-time performance and customer satisfaction.

• Focus remains on flexibility, cash preservation, and serving resilient VFR (Visiting Friends and Relatives) traffic.

Financial highlights

• Total operating revenues were $678 million, down 11.7% year-over-year, with a net loss of $51 million for the quarter.

• EBITDAR was $203 million, down 13.6% year-over-year, with a margin of 29.9%.

• CASM was 7.88 cents, a 2.5% decrease year-over-year; CASM ex-fuel rose 4.5% to 5.40 cents.

• Net debt-to-EBITDA/EBITDAR ratio at 2.7x, with liquidity of $862 million (28% of LTM revenues).

• Total operating expenses rose 3.6% to $688 million, representing 101% of total operating revenue.

Outlook and guidance

• Full-year 2025 ASM growth target revised to 8%-9% from 13%-15% to match demand trends.

• Q2 2025 guidance: ASM up 9%-10%, TRASM $7.4-$7.5 cents, CASM ex-fuel $5.7-$5.8 cents, EBITDA/EBITDAR margin 24%-25%.

• CapEx (excluding fleet pre-delivery payments) expected at $250 million for 2025.

• No full-year EBITDA/margin guidance reaffirmed due to ongoing uncertainty.

• Guidance includes expected compensation for grounded aircraft due to GTF engine inspections.