Volaris (VOLARA) Q2 2025 earnings summary

Executive summary

• Q2 2025 results slightly ahead of guidance, with a 28% EBITDA/27.9% EBITDAR margin, reflecting resilience and disciplined execution in a challenging environment.

• Net loss of $63 million for Q2 2025, reversing a $10 million profit in Q2 2024.

• Demand trends show signs of stabilization, with constructive booking patterns and sequential improvement expected in the second half of 2025.

• Focus on cost control, margin discipline, and tactical capacity adjustments, with strong ancillary revenue performance.

• Flexible business model and agility in adapting capacity and pricing to prioritize profitability.

Financial highlights

• Q2 2025 total operating revenues were $693 million, down 4.5% year-over-year.

• EBITDAR was $194 million (27.9% margin), down 25.7% year-over-year; EBIT loss of $22 million (-3.2% margin); net loss of $63 million (-$0.55 per ADS).

• Ancillary revenue per passenger was $54, accounting for over 50% of total operating revenues.

• CASM was $0.0805 (flat); CASM ex-fuel $0.0569 (up 6.7%).

• Total liquidity at $788 million, representing 26% of last twelve months' revenues.

Outlook and guidance

• Full-year 2025 ASM growth expected at -7%; EBITDAR/EBITDA margin guidance reinstated at 32%-33%.

• Q3 2025 guidance: ASM growth -6%, TRASM $0.086, CASM ex-fuel $0.055, EBITDAR/EBITDA margin 32%-33%.

• 2026 ASM growth targeted in mid-single digits, with ±3% flexibility to respond to demand.

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

• Capex for FY 2025 guided at $250 million.