Core Viewpoint - Volaris Group has announced the acquisition of Comprose, Inc., a provider of policy and procedure management software for enterprise customers in regulated industries [1][4]. Company Overview - Comprose, founded in 1987 and based in St. Louis, Missouri, offers a mission-critical SaaS platform that enables organizations to manage policies and procedures at scale, particularly in regulated environments [2]. - The core product, Zavanta, is a cloud-based platform that supports the full document lifecycle, including authoring, review, approval workflows, access controls, and attestation [3]. Product Features - Zavanta includes advanced modules such as automated testing and quizzes, global translation services, AI-powered search, and integrations with customer identity management systems [3]. Leadership Statements - Chris Gutierrez, General Manager of Centurisk, expressed enthusiasm about Comprose joining the Volaris Workforce Management family, highlighting the importance of the platform in regulated environments [4]. - Kathy Anton, Founder of Comprose, stated confidence in Volaris Group as the right home for Comprose, emphasizing shared values regarding people and culture [4]. - John Lewis, President of Comprose, noted excitement about leading the company into its next chapter with Volaris Group, which is committed to long-term growth and maintaining Comprose's culture [5]. About Volaris Group - Volaris Group focuses on acquiring, strengthening, and growing vertical market technology companies, operating as a group of Constellation Software Inc. [6].

Core Insights - Volaris reported a 1.0% increase in ASM capacity and a 1.5% growth in RPMs for February 2026, with a consolidated load factor of 85.7%, up 0.5 percentage points year-over-year [2][3]. Traffic Results - In February 2026, Volaris transported 2.3 million passengers, with domestic RPMs declining by 5.4% to 1,307 million and international RPMs increasing by 12.6% to 964 million [2][4]. - The total RPMs for February 2026 reached 2,271 million, a 1.5% increase compared to February 2025 [4]. Capacity and Load Factor - Domestic ASM capacity decreased by 5.2% to 1,467 million, while international ASM capacity increased by 9.9% to 1,184 million, resulting in a total ASM of 2,651 million, up 1.0% [4]. - The load factor for domestic flights was 89.1%, slightly down from 89.2% year-over-year, while the international load factor improved to 81.4%, up 2.0 percentage points [4]. Passenger Trends - Domestic passenger numbers increased by 0.4% to 1,649 thousand, while international passengers rose by 14.7% to 668 thousand, leading to a total of 2,318 thousand passengers, a 4.1% increase [4]. - Year-to-date figures show a total of 5,038 thousand passengers, up 4.4% compared to the same period in 2025 [4]. Market Outlook - The company noted healthy booking trends for 2026, particularly among Hispanic VFR and leisure passengers, indicating confidence in sustained strong performance as the year progresses [3][4].

Volaris (NYSE:VLRS) Q4 2025 Earnings call February 25, 2026 10:00 AM ET Company ParticipantsEnrique Beltranena - Founder and CEOHolger Blankenstein - Executive Vice PresidentJaime Pous - CFOLiliana Juárez - Investor Relations ManagerRicardo Alves - Director and Tech Project ManagerConference Call ParticipantsNone - AnalystNone - AnalystOperatorGood morning, everyone. Thank you for joining Volaris' fourth quarter and full year 2025 financial results conference call. All lines are currently in a listen-only m ...

Financial Data and Key Metrics Changes - In Q4 2025, total operating revenues reached $882 million, a 5.6% increase compared to Q4 2024, driven by a recovery in the latter half of the year and diversification of revenues [22][24] - The full-year total operating revenues for 2025 were $3 billion, a 3% decrease from 2024 [25] - EBITDA for Q4 was $328 million, with a margin of 37.2%, aligned with guidance [24] - The full-year EBITDA totaled $988 million, a 13% decrease, with an EBITDA margin of 32.5% [25] - CASM (Cost per Available Seat Mile) was $0.0829, a 3.2% increase, while CASM ex fuel was $0.0576, up 1.4% year-over-year [23][25] Business Line Data and Key Metrics Changes - Ancillary revenues comprised 56% of total operating revenues, reflecting the advantages of the ultra-low-cost carrier model [4] - International load factor in Q4 reached 79%, up from 77.5% in the first nine months of the year, while domestic load factor was 89.8% [6][14] - Ancillary revenues per passenger increased by 6% compared to 2024, supported by segmentation initiatives [16] Market Data and Key Metrics Changes - The cross-border market showed stable recovery, with improved travel sentiment and positive results from capacity added in the second half of the year [5][14] - The Mexican economy is showing signs of improvement, with recovery in consumption trends and better-than-expected inflation performance [7] Company Strategy and Development Direction - The company plans to allocate most of its incremental capacity to international markets, with a focus on disciplined growth and profitability [8][20] - The proposed airline group with Viva aims to broaden access to low-fare travel while preserving unique brands [10][39] - The company expects to manage growth through scheduled Airbus deliveries, AOG reduction, and aircraft lease returns [8][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the cross-border market and the ability to capture profitable demand through a disciplined capacity deployment strategy [5][37] - The company anticipates a 7% ASM growth for 2026, with a focus on aligning capacity with demand [7][32] - Management highlighted the importance of maintaining a flexible, low-cost operating framework to adapt to changing market conditions [37] Other Important Information - The company ended Q4 with a liquidity position of $774 million, representing 25.5% of the last 12 months' total operating revenues [27] - The average age of the fleet is 6.6 years, with 66% being fuel-efficient newer models [28] Q&A Session Summary Question: What were the key drivers behind the reported tax rate of 89% in the quarter? - The tax rate reflects the application of the actual tax rate for the year, with an effective tax rate for the full year being 11.8% [42][44] Question: How should the 7% capacity growth for 2026 be viewed in terms of domestic versus international mix? - The capacity growth will be skewed towards the international market, with domestic growth expected to be in the low to mid-single digits [45][46] Question: What does the flat fleet count through 2030 mean for multi-year capacity growth and potential CapEx? - The company expects to grow capacity by 7% over the midterm, with growth coming from unproductive fleet being put into production [49][50]

Financial Data and Key Metrics Changes - In Q4 2025, total operating revenues reached $882 million, a 5.6% increase compared to the same quarter in 2024, driven by a recovery in cross-border travel and diversification of revenues [20][21] - The full-year total operating revenues for 2025 were $3 billion, reflecting a 3% decrease from 2024 [24] - EBITDA for Q4 was $328 million with a margin of 37.2%, while full-year EBITDA totaled $988 million, a 13% decrease with an EBITDA margin of 32.5% [24][25] - CASM (Cost per Available Seat Mile) was $0.0829, a 3.2% increase, while CASM ex-fuel was $0.0576, up 1.4% year-over-year [22] Business Line Data and Key Metrics Changes - Ancillary revenues comprised 56% of total operating revenues, indicating a strong performance in this area [4] - The international load factor reached 79% in Q4, up from 77.5% in the first nine months of the year, while the domestic load factor was 89.8% [5][12] Market Data and Key Metrics Changes - The cross-border market showed stable recovery, with improved travel sentiment and positive results from capacity deployment [5][12] - The company plans to allocate most of its incremental capacity to international markets, which now represent approximately 42% of total capacity [19] Company Strategy and Development Direction - The company aims to stimulate demand through its low-fare model, focusing on profitable growth and capital efficiency [6] - A proposed airline group with Viva is expected to enhance access to low-fare travel in domestic and cross-border markets while preserving brand identity [9][10] - The company anticipates a 7% ASM (Available Seat Mile) growth for 2026, with a focus on disciplined capacity deployment [6][31] Management's Comments on Operating Environment and Future Outlook - Management noted that the Mexican economy is showing signs of improvement, with better-than-expected inflation and recovery in consumption trends [6] - The company expects to see a reduction in grounded aircraft and improved fleet productivity as it moves into 2026 [30] Other Important Information - The company ended Q4 with a liquidity position of $774 million, representing 25.5% of the last twelve months' total operating revenues [26] - The average age of the fleet is 6.6 years, with 66% being fuel-efficient newer models [27] Q&A Session Summary Question: What were the key drivers behind the reported tax rate of 89% in the quarter? - The tax rate reflects the application of the actual tax rate for the year, with an effective tax rate of 11.8% for the full year [42][43] Question: How should the 7% capacity growth for 2026 be viewed in terms of domestic versus international mix? - The capacity growth will be skewed towards international markets, with domestic growth expected to be in the low to mid-single digits [45][46] Question: What does the flat fleet count through 2030 mean for multi-year capacity growth and potential CapEx? - The company expects to grow capacity by 7% over the next five years, with growth coming from unproductive fleet being put into service [49][50]

4Q'25 Results February 2026 Disclaimer This presentation was prepared by Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (d/b/a Volaris, the "Company") with the purpose of providing interested parties certain financial and other information about the Company. This presentation is solely for discussion purposes and highlights basic information about the Company. Because it is a summary, it does not contain all the information that you should consider before investing in the securities of the Company. ...

Core Insights - Volaris demonstrated resilience in its ultra-low-cost model and market positioning in 2025, responding to geopolitical and industry dynamics by moderating capacity to protect profitability and controlling unit costs [2][3] - The company expects approximately 7% ASM growth in 2026, supported by a reduction in engine-related aircraft on ground, which will improve profitability as the year progresses [3][22] Fourth Quarter 2025 Highlights - Total operating revenues for Q4 2025 reached $882 million, a 5.6% increase compared to Q4 2024 [4][10] - The load factor for the quarter was 85.1%, down 2.2 percentage points from the previous year [11][41] - Net income for the quarter was $4 million, with earnings per ADS of $0.04, a significant decrease of 91.3% compared to the previous year [13][48] Full Year 2025 Highlights - Total operating revenues for the full year amounted to $3,038 million, a 3.3% decrease from FY 2024 [5][15] - The company reported a net loss of $104 million for the year, with a loss per ADS of $0.91 [18][50] - Total operating expenses increased to $2,903 million, up 6.4% from the previous year [17][46] Financial Metrics - Total revenue per available seat mile (TRASM) for Q4 2025 remained flat at $9.35 cents, while for the full year, it decreased by 9% to $8.41 cents [7][16] - Average economic fuel cost increased by 5.5% to $2.65 per gallon in Q4 2025, while it decreased by 6% to $2.59 per gallon for the full year [12][17] - EBITDAR for Q4 2025 was stable at $328 million, with an EBITDAR margin of 37.2%, down 2.4 percentage points [13][41] Operational Indicators - Available seat miles (ASMs) increased by 6% to 9.4 billion in Q4 2025 and by 6.3% to 36.1 billion for the full year [5][15] - Booked passengers totaled 8.2 million in Q4 2025, a 4.4% increase, while for the full year, booked passengers reached 31 million, a 5.2% increase [10][15] - The fleet size at the end of 2025 was 155 aircraft, an increase of 12 from the previous year [26][27] Future Outlook - For 2026, Volaris anticipates an EBITDAR margin of approximately 33% and capital expenditures of around $350 million [22][23] - The company is also planning to form a new airline group with Viva to enhance access to affordable air travel in the region, pending regulatory approvals [28]

Hedging and Financial Risk Management - The Company has a conservative Hedging Policy that allows derivative financial instruments only for hedging purposes, not for speculative trading [5]. - The Company is exposed to fuel price fluctuation risk and uses derivative financial instruments, including Asian Call Options on Jet Fuel, to hedge against significant increases in fuel prices [8]. - The Company does not currently hold foreign exchange derivative financial instruments, with most exposure related to payments in Mexican pesos [8]. - The Company uses interest rate swaps and options to hedge against interest rate variation risk, holding interest rate CAPs with TIIE 28 as the underlying asset [8]. - All derivative financial instruments held by the Company qualify for hedge accounting, meaning changes in their fair value will only result from changes in the price levels of the underlying asset [14]. - The Company uses derivative financial instruments to mitigate financial risks such as jet fuel price volatility and interest rate changes [156]. Financial Reporting and Compliance - The Company’s financial statements are prepared in accordance with IFRS, ensuring compliance with international accounting standards [11]. - The Company has consistently applied its accounting policies across all periods presented in the financial statements [18]. - The presentation currency of the Company’s financial statements is the US dollar, with all values rounded to the nearest thousand [17]. - The Company’s financial statements are prepared in accordance with IFRS, with all values rounded to the nearest thousand US dollars [183]. - The Company’s financial instruments are measured at fair value, with a three-level hierarchy for fair value measurement disclosures required by IFRS 7 [162]. Revenue Recognition - The Company recognizes passenger revenues when the service is provided or when the non-refundable ticket expires [30]. - All tickets sold by the Company are non-refundable, and revenue is recognized only when the service is provided or the ticket expires [31]. - Points accumulated in the "Spin Premia" program are recorded as a reduction in revenues until redeemed [47]. Loyalty Programs - The Company launched its new loyalty program "altitude" on July 16, 2025 [5]. - The Company entered into a coalition agreement with FEMSA for the "Spin Premia®" loyalty program on January 23, 2023 [45]. Asset Management and Impairment - The company recognizes impairment charges on intangible assets when the carrying amount exceeds its recoverable amount, which is determined based on fair value less cost to sell or value in use [72]. - The company assesses the recoverable amount of long-lived assets using a discounted cash flow model, typically projecting operating results for no more than five years [73]. - As of December 31, 2025 and 2024, there were no impairment charges recorded in relation to the right-of-use assets [134]. Employee Compensation and Benefits - The company has a quarterly incentive plan for certain personnel, awarding cash bonuses for meeting performance targets [111]. - The Company approved a new long-term retention plan ("LTRP") for 2024 and 2023, which consists of an equity-settled share purchase plan [115]. - The cost of equity-settled share-based payments is recognized in the consolidated statements of operations over the required service period [116]. - The Company granted share appreciation rights (SARs) to key employees, which entitle them to cash payments based on the increase in share price [118]. - The Management Incentive Plan ("MIP II") was extended for certain key executives, allowing them to receive cash payments based on share price increases [120]. - Employee profit sharing is computed at a rate of 10% based on the taxpayer's taxable income, with a limit of up to three months of the employee's current salary [124]. Lease and Asset Depreciation - The Company recognizes lease liabilities at the present value of lease payments to be made over the lease term [130]. - The right-of-use assets are depreciated on a straight-line basis over the shorter of the remaining lease term or the estimated useful lives of the assets [129]. - The company records depreciation on flight equipment at rates ranging from 4.0% to 16.7% annually [95]. - The company evaluates the useful lives of its assets annually, with any changes accounted for prospectively [95]. Financial Liabilities and Credit Losses - Financial liabilities are recognized initially at fair value and subsequently measured at amortized cost [62]. - The Company applies a simplified approach in calculating Expected Credit Losses (ECLs) for trade receivables [60]. Corporate Structure and Control - As of December 31, 2025, the Company does not hold an ownership interest in North Star Financing Limited but exercises control over it [25]. - The company does not hold an ownership interest in North Star Thrust DAC as of December 31, 2025, yet exercises control over it [192]. - The company reassesses control over an investee if facts and circumstances indicate changes to the elements of control [193]. - All intercompany balances and transactions are eliminated completely on consolidation in the consolidated financial statements [194]. - The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies [193]. Financing and Capital Structure - The Company completed the offering of 15,000,000 asset-backed trust notes for an amount of Ps.1.5 billion Mexican pesos (approximately US$85.8 million) on September 28, 2023 [177]. - The Trust Notes will be backed by future collection rights from credit card processors regarding airline ticket sales and related services [177]. - The Trust Notes issued in 2021 have sustainability objectives to reduce CO2 emissions by 21.54%, 24.08%, and 25.53% by 2022, 2023, and 2024, respectively, compared to 2015 [176]. - The company has a power-by-the-hour agreement for component services, ensuring availability of aircraft components when required [91]. Regulatory and Compliance Updates - The company has not early adopted any standard, interpretation, or amendment that has been issued but is not yet effective [197]. - The amendments to IAS 21 regarding exchangeability will be effective for annual reporting periods beginning on or after January 1, 2025 [199]. - The company uses observable exchange rates for foreign currencies in its financial statements, thus the amendments did not impact its interim condensed consolidated financial statements [200]. Business Operations - The Company operates under a single business unit providing air transportation and has two geographic areas: domestic (Mexico) and international (USA, Central America, and South America) [164]. - The Company has a concession to provide air transportation services, which was extended for a 20-year term starting May 9, 2020 [169]. - The Company announced an agreement with Grupo Viva Aerobus to create a new Mexican Airline Group aimed at increasing low-cost air travel, pending authorization [180].

Core Viewpoint - Volaris has resumed normal operations at all its airports, including Guadalajara and Puerto Vallarta, and is actively supporting affected customers with various solutions [1][2] Group 1: Operational Status - As of February 24, 2026, all operations of Volaris are running normally [1] - This includes operations at key airports such as Guadalajara (GDL) and Puerto Vallarta (PVR) [1] Group 2: Customer Support - Volaris is providing support to customers whose itineraries were affected by the recent external situation [1] - Customers can access solutions through the "My Trips" section on the Volaris website or via WhatsApp for personalized assistance [1] Group 3: Commitment to Safety - The company expresses appreciation for customer understanding and patience during the external situation [2] - Volaris reiterates its commitment to maintaining a safe and reliable operation at all times [2]

Core Insights - Volaris reported a 4.3% increase in ASM capacity and a 2.1% growth in RPMs for January 2026, with a total of 2.7 million passengers transported [2][3] Traffic Results - Domestic RPMs decreased by 1.1% to 1,541 million, while international RPMs increased by 6.7% to 1,181 million, resulting in a total RPM of 2,722 million, up 2.1% year-over-year [2][3] - Domestic ASMs fell by 0.8% to 1,760 million, whereas international ASMs rose by 11.2% to 1,450 million, leading to a total ASM of 3,210 million, an increase of 4.3% [2][3] - The consolidated load factor decreased by 1.8 percentage points to 84.8%, with domestic load factor at 87.6% and international load factor at 81.5% [2][3] Passenger Statistics - The number of domestic passengers increased by 3.6% to 1,899 thousand, while international passengers rose by 7.5% to 821 thousand, totaling 2,720 thousand passengers, a 4.7% increase year-over-year [2][3] Management Commentary - The President and CEO of Volaris indicated that traffic trends are consistent with the previous quarter, with stable domestic passenger volumes and improving international performance driven by VFR demand [3]