Volaris (VOLARA) Q1 2026 earnings summary

Executive summary

• Entered 2026 focused on disciplined growth, revenue quality, and active fleet management amid higher fuel prices and geopolitical uncertainty.

• Achieved 14% year-over-year revenue growth to $770 million, driven by higher fares and ancillary revenue.

• Net loss widened to $71 million, with loss per ADS of $0.62, reflecting higher fuel and operating costs.

• Maintained disciplined cost control, agile capacity alignment, and network optimization amid volatile fuel prices.

• Load factor remained strong at 85.0%, with 7.7 million passengers carried, up 4.5% year-over-year.

Financial highlights

• Total operating revenues reached $770 million, up 14% year-over-year, with 2.3% ASM growth.

• TRASM was $0.0862, up 11% year-over-year; base fare increased 10%, ancillaries reached 57% of total revenue.

• EBITDA margin was 22.9%, 2 points below guidance due to higher fuel costs; EBIT was -$21 million (-2.8% margin).

• Net loss for the quarter was $71 million, or $0.62 per ADS; net loss margin deteriorated to 9.3%.

• Ancillary revenue per passenger grew 7.8% to $57, representing 57.3% of total revenue.

Outlook and guidance

• Full-year 2026 ASM growth now expected at 4%, down from 7%, reflecting capacity adjustments and cash preservation.

• Second quarter 2026 guidance: ASM growth 0%-2% YoY, TRASM ~$0.095, CASM ex-fuel ~$0.068, EBITDA/EBITDAR margin ~13%.

• Full-year guidance suspended due to jet fuel volatility and geopolitical uncertainty; update to be provided when conditions stabilize.

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

• Expect sequential improvement in margins and profitability in the second half as pricing actions and capacity adjustments take full effect.