Volaris (VOLARA) Q2 2026 earnings summary

Executive summary

• Achieved record second-quarter TRASM of 9.49 cents, up 21.5% year-over-year, driven by fare increases and strong demand in both domestic and international markets.

• Total operating revenues rose 24% to $859 million, with ancillary revenues representing 55.5% of total revenue.

• Net loss widened to $127 million, with a loss per ADS of $1.11, impacted by a 70% increase in fuel costs and higher maintenance expenses.

• Every operated flight generated positive cash contribution, and cash, cash equivalents, and short-term investments totaled $824 million.

Financial highlights

• Operating revenues: $859 million (+24% YoY); operating expenses: $958 million (+34% YoY).

• EBITDAR: $141 million, down 27.3% YoY; EBITDAR margin: 16.3%, down 11.6 percentage points.

• CASM increased 31.3% to 10.58 cents; CASM ex fuel up 18.6% to 6.75 cents, reflecting non-recurring fleet maintenance and capacity reductions.

• Net debt-to-LTM EBITDAR ratio at 3.3x, up from 3.2x in the previous quarter.

• Net cash flow from operations: $272 million; cash position represents 25% of LTM revenue.

Outlook and guidance

• Full-year 2026 ASM growth expected at ~5%; EBITDAR margin guidance reinstated at ~23%.

• Third-quarter 2026 ASM growth projected at ~10% YoY; TRASM guidance at ~9.90 cents.

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

• Outlook remains sensitive to geopolitical and macroeconomic factors.