Volaris (VOLARA) Q3 2026 earnings summary

Executive summary

• Quarterly revenue exceeded $1 billion for the first time, rising 32.4% YoY; positive EBIT and a 25.3% EBITDAR margin exceeded guidance despite elevated fuel costs.

• Capacity deployment shifted toward higher-return international markets, with improved aircraft productivity and $823M in quarter-end liquidity.

Financial highlights

• Operating revenue was $1,038M, up 32.4% YoY; operating expenses rose 40.2% to $1,004M, including fuel expense up 72.1%.

• EBITDAR was $263M, down 0.4% YoY, with a 25.3% margin versus ~22% guidance; EBIT was $34M with a 3.3% margin, versus $68M in 3Q'25.

• Net loss was $26M versus $6M net income in 3Q'25; management said the loss narrowed nearly 80% QoQ.

• Operating cash flow was $234M; 9M revenue rose 23.7% to $2,668M while EBIT was a loss of $86M.

Outlook and guidance

• 4Q'26 guidance: ASM growth ~4%, TRASM ~10.90 cents, CASM ex fuel ~6.50 cents and EBITDAR margin ~20%; assumptions include fuel at $4.40/gallon and USD/MXN at ~18.70.

• 4Q TRASM growth is expected at ~17% YoY; international ASMs are expected to grow in the high teens while domestic capacity declines by mid-single digits.

• FY'26 outlook: ASM growth ~5%, EBITDAR margin ~21% and CAPEX ~$350M, net of financed fleet predelivery payments.

• FY'27 base case targets low-single-digit ASM growth, with domestic capacity down low-to-mid single digits and international growth; capacity is adjustable to market conditions.