Volaris (VOLARA) Q4 2025 earnings summary

Executive summary

• Achieved 5.6–6.3% capacity growth in Q4 2025, with TRASM converging to prior year levels despite operational headwinds and a focus on profitability.

• Ancillary revenues comprised over 56% of total operating revenues, reinforcing the ultra-low-cost model.

• Maintained strong cost discipline, ending 2025 with a full-year EBITDA/EBITDAR margin of 32.5%.

• Sequential improvement in cross-border performance and loyalty program uptake, with ~800k new enrollments.

• Announced proposed airline group with Viva to expand market reach, pending regulatory approval.

Financial highlights

• Q4 2025 operating revenues were $882 million, up 5.6–6% year-over-year; full-year revenues were $3,038 million, down 3–3.3%.

• Q4 EBITDA/EBITDAR was $328 million (37.2% margin); EBIT was $100 million (11.3% margin); net profit was $4 million ($0.04 per ADS).

• Full-year 2025 EBITDA/EBITDAR was $988 million (32.5% margin); EBIT $135 million (4.4% margin); net loss $104 million ($0.91 per ADS).

• Q4 CASM was $0.0829 (up 3.2%); CASM ex fuel $0.0576 (up 1.4%); full-year CASM ex fuel $0.0558.

• Ended Q4 with $774 million liquidity (25–25.5% of LTM revenues); net debt/EBITDA or EBITDAR at 3.1x.

Outlook and guidance

• 2026 ASM growth expected at ~7%, with most incremental capacity allocated to international markets.

• 2026 EBITDA/EBITDAR margin guided at ~33%; CapEx expected at ~$350 million.

• Q1 2026 guidance: ASM growth ~3%, TRASM ~$0.085 or 8.50¢, CASM ex fuel ~$0.06 or 6.00¢, EBITDA/EBITDAR margin ~25%.

• Expect net debt/EBITDA to improve to 2.6x by end of 2026 as AOGs decline.

• Fleet normalization and AOG recovery expected to drive multi-year earnings improvement.