PresentationOperator Good morning, everyone, and thank you for joining today's conference call. [Operator Instructions] After opening remarks, we'll open the call for questions from analysts. Please note that today's event is also being recorded and webcast live on Volaris Investor Relations website. The presentation and transcript for the call will also be available on the Volaris and Viva Investor Relations website. At this time, I'd like to turn the call over to Liliana Juárez, Investor Relations Manage ...

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Summary of Conference Call on Proposed Formation of New Airline Group by Volaris and VIVA Industry and Companies Involved - **Industry**: Aviation, specifically the airline sector in Mexico - **Companies**: Volaris and VIVA Core Points and Arguments 1. **Formation of New Airline Group**: Volaris and VIVA are proposing to create a new airline group aimed at accelerating air travel expansion in Mexico and internationally, leveraging economies of scale [2][4] 2. **Merger Structure**: The merger will be a merger of equals, with shareholders of both companies owning 50% of the new entity, which will be publicly listed under a new ticker as Grupo Mas Vuelos [7][8] 3. **Operational Independence**: Both airlines will maintain their distinct brands and air operator certificates, ensuring operational continuity while benefiting from a stronger financial foundation [9][10] 4. **Market Opportunity**: The Mexican aviation sector is under-penetrated, with air trips per capita significantly lower than in comparable emerging economies, indicating substantial growth potential [12][13] 5. **Job Creation**: The establishment of new bases in underserved regions is expected to create direct and indirect jobs, with each new airplane estimated to create approximately 60 direct jobs [11] 6. **Fleet and Cost Structure**: The combined order book exceeds 200 aircraft, with a projected value of up to $14 billion. The merger is expected to enhance cost efficiencies, particularly in aircraft ownership costs, which currently represent 33%-35% of total costs [12][31] 7. **Regulatory Process**: The transaction is subject to regulatory approvals in Mexico, Colombia, and the U.S., and the companies are optimistic about the review process [23][53] 8. **Financial Metrics**: The pro forma leverage for the combined entity is projected at 2.7 times EV/EBITDA, with a focus on reducing aircraft ownership costs through improved capital allocation [25][17] 9. **Synergies and Cost Savings**: The merger is expected to unlock significant cost synergies, particularly in fleet negotiations and procurement, which will help lower operational costs and improve financial stability [17][55] 10. **Community and Economic Impact**: Increased connectivity is anticipated to support economic development, particularly in underserved regions, benefiting tourism and other key sectors [19][55] Other Important but Potentially Overlooked Content 1. **Cultural Compatibility**: The companies believe their similar operational cultures will facilitate the merger process and realization of synergies [54] 2. **Focus on Demand-Driven Growth**: Both airlines emphasize maintaining a low-cost, low-complexity operating model while expanding access to affordable air travel [48] 3. **Long-Term Vision**: The new airline group aims to redefine affordable air travel in Mexico, enhancing connectivity and value for passengers [20][21]

Transaction Overview - Volaris and Viva shareholders will combine their holding companies into Volaris' holding company through a merger of equals[15] - Equity holders in Viva will receive newly issued shares of Volaris, and each side will own 50% of the combined holding company on a fully diluted basis[15] - The transaction is expected to close in 2026, subject to shareholders' vote and applicable regulatory approvals[15] Combined Company Strength - The combined company will have a broad network with 86 destinations, 324 routes, and 991 daily flights[20] - As of 3Q'25, Volaris had 225 routes (128 domestic and 97 international) and Viva had 184 routes (140 domestic and 44 international)[16] - As of 3Q'25, Volaris transported 306 million passengers (226 million domestic and 80 million international) and Viva transported 296 million passengers (263 million domestic and 33 million international)[16] - As of 3Q'25, Volaris' revenue was $2991 million and Viva's revenue was $2365 million[16] - As of 3Q'25, Volaris' EBITDAR was $990 million with a 33% margin, and Viva's EBITDAR was $873 million with a 37% margin[16] - As of 3Q'25, Volaris' net debt was $3071 million and Viva's net debt was $1883 million[16] Market Opportunity - There are 39 million Mexican-origin individuals living in the US[22] - There are 101 million national tourists in the Mexican leisure market in 2024[22] - Mexico received $41 billion in foreign direct investment in 2025[22] - Mexico had 120 million air passengers in 2024[22]

Shares in Mexican airline Volaris jumped nearly 20% in early trading on Friday after plans to create a joint airline group with rival Viva Aerobus were announced. ...

Core Viewpoint - Controladora Vuela Compañía de Aviación (Volaris) and Grupo Viva Aerobus (Viva) have announced a merger to form a new Mexican airline group aimed at expanding low-fare travel and connectivity both domestically and internationally [1][2][3] Company Overview - The new airline group will maintain the independent operations and brands of both Volaris and Viva, preserving existing passenger options while enhancing point-to-point travel solutions [2][6] - The merger is expected to create significant benefits for employees, passengers, communities, suppliers, and shareholders, supporting investments and economic development across Mexico [2][3] Financial Implications - The formation of the airline group is anticipated to yield economies of scale, resulting in lower fleet ownership costs, improved access to capital, and a stronger financial position for both carriers [3][4] - The new structure will enable both airlines to offer low-cost, high-value services, thereby increasing market reach and stimulating demand [3][4] Stakeholder Benefits - The merger will enhance connectivity in Mexico, democratizing air travel and providing more affordable options for passengers [6][7] - Job stability for existing employees will be maintained, with new job creation expected as operations expand [14][15] Operational Strategy - The airline group will focus on expanding its operational bases and enhancing connectivity through potential codeshare agreements, improving both domestic and international travel capabilities [14][15] - The new group aims to optimize unit costs and leverage better access to lower-cost capital, driving sustainable growth [14][15] Governance Structure - Both airlines will continue to operate as separate entities with their existing leadership structures, while a new Board of Directors will oversee the holding company, ensuring representation from both Volaris and Viva [16][15]

Core Insights - Volaris and Viva Aerobus are nearing a merger agreement, which would unite two of Mexico's largest airlines and establish a significant low-cost airline in the region [1] Company Overview - The merger would create a low-cost champion in the Mexican airline industry, enhancing competitive positioning against larger carriers [1] Industry Implications - This consolidation reflects ongoing trends in the airline industry towards mergers and acquisitions, aimed at increasing efficiency and market share [1]

MEXICO CITY, Dec. 04, 2025 (GLOBE NEWSWIRE) -- Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE: VLRS and BMV: VOLAR) (“Volaris” or “the Company”), the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central and South America, reports its November 2025 preliminary traffic results. In November, Volaris’ ASM capacity increased 5.8%, while RPMs for the month grew 3.9%. Mexican domestic RPMs increased 0.6%, while international RPMs rose 9.2%. Consolidated load factor decreased by 1 ...

Core Insights - Volaris successfully completed all inspections and repairs mandated by the European Union Aviation Safety Agency (EASA) regarding a flight-control software issue affecting approximately 6,000 A320-family aircraft globally [1][2][4] - The airline maintained its full flight schedule without any cancellations and only experienced minimal delays during the process, demonstrating effective operational management [2][4] - Volaris emphasized its commitment to safety and operational excellence, showcasing its ability to respond quickly to regulatory requirements while ensuring a positive customer experience [2][4] Company Overview - Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) is an ultra-low-cost carrier operating in Mexico, the United States, Central, and South America, with a fleet of 154 aircraft and over 221 routes [3] - Since its inception in March 2006, Volaris has expanded significantly, offering around 500 daily flight segments connecting 44 cities in Mexico and 30 cities in the United States, Central, and South America [3] - The airline targets cost-conscious travelers, including those visiting friends and relatives, as well as business and leisure passengers [3]

Core Insights - Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS) is highlighted as a strong investment opportunity in the Mexican stock market due to its recent performance and growth potential [1] Traffic and Performance Metrics - In October, Volaris reported a 1.1% increase in available seat miles, while revenue passenger miles decreased by 0.6% [1] - Domestic traffic saw a decline of 1.9%, whereas international traffic experienced a growth of 1.4% [1] - The overall load factor was 85.9%, which is approximately 1.5 percentage points lower than the same month last year [1] - Volaris carried a total of 2.6 million passengers in October [1] Financial Performance - For Q3 2025, Volaris reported total operating revenues of $784 million, a 4% decrease compared to Q3 2024 [3] - The net income for the quarter was $6 million, down from $37 million in Q3 2024, with earnings per American Depositary Share (ADS) at $0.05 compared to $0.32 a year earlier [3] Capacity Management - Throughout 2025, Volaris reduced its planned capacity growth from around 15% to nearly half that level to align supply with demand and manage costs effectively [4] - This conservative capacity approach was also influenced by engine inspections [4] Future Guidance - Executives expect ASM growth for 2026 to be in the range of 6-8% [5] - The projected EBITDA margin for the full year 2025 is anticipated to be between 32-33% [5] Company Overview - Volaris operates as an ultra-low-cost carrier based in Mexico City, conducting approximately 550 daily flights connecting 44 cities in Mexico, 23 in the United States, 4 in Central America, and 2 in South America [5]