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. This presentation should be ...

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Core Insights - Controladora Vuela (VLRS) reported $784 million in revenue for Q3 2025, a year-over-year decline of 3.6% and an EPS of $0.05 compared to $0.32 a year ago, indicating a significant drop in profitability [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $785.01 million, resulting in a surprise of -0.13%, while the EPS exceeded expectations with a surprise of +266.67% against a consensus estimate of -$0.03 [1] Financial Performance Metrics - Available Seat Miles (ASMs) totaled $9.07 billion, slightly below the estimated $9.12 billion [4] - Cost per Available Seat Mile (CASM) excluding fuel was reported at 5.48 cents, marginally better than the estimated 5.51 cents [4] - Fuel gallons accrued were 83.88 million, lower than the estimated 86.79 million [4] - Revenue Passenger Miles (RPMs) totaled $7.65 billion, below the estimated $7.79 billion [4] - Operating expenses per ASM (CASM) were reported at 7.90 cents, better than the average estimate of 8.08 cents [4] - Load factor was reported at 84.4%, below the estimated 85.5% [4] - Passenger revenues from fares were $342 million, compared to the estimated $347.8 million, reflecting a year-over-year decline of 15.1% [4] Stock Performance - Controladora Vuela's shares returned +1.8% over the past month, while the Zacks S&P 500 composite increased by +2.5% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Core Insights - Controladora Vuela (VLRS) reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of a loss of $0.03 per share, representing an earnings surprise of +266.67% [1] - The company posted revenues of $784 million for the quarter ended September 2025, which was slightly below the Zacks Consensus Estimate by 0.13% and down from $813 million a year ago [2] - Controladora Vuela has surpassed consensus EPS estimates three times over the last four quarters, but has only topped revenue estimates once in the same period [2] Financial Performance - The earnings report indicates a significant improvement from a loss of $0.32 per share a year ago [1] - The company has experienced a stock price decline of approximately 7.9% since the beginning of the year, contrasting with the S&P 500's gain of 15.5% [3] - Current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $855.54 million, while the estimate for the current fiscal year is -$0.83 on revenues of $3.01 billion [7] Market Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call [3] - The Zacks Rank for Controladora Vuela is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] - The Transportation - Airline industry, to which Controladora Vuela belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, which may impact stock performance [8]

Core Insights - Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) reported a net income of $6 million for Q3 2025, a significant decline of 83.8% compared to the same quarter in 2024 [6][13][40] - Total operating revenues decreased by 3.6% year-over-year to $784 million, primarily due to lower unit revenues [5][10][40] - The company experienced a 4.6% increase in available seat miles (ASMs) to 9.1 billion, while the load factor decreased by 3.0 percentage points to 84.4% [5][10][32] Financial Performance - Total operating expenses rose by 4.2% to $716 million, with operating income dropping 46.0% to $68 million [5][7][40] - Total revenue per available seat mile (TRASM) fell by 7.7% to 8.65 cents, attributed to a decrease in average base fare [5][11][40] - EBITDAR decreased by 16.2% to $264 million, with an EBITDAR margin of 33.6%, down 5.1 percentage points from the previous year [6][13][40] Passenger and Revenue Metrics - The number of booked passengers increased by 3.2% to 7.9 million, with domestic and international passengers rising by 2.7% and 4.4%, respectively [10][11][32] - Average base fare per passenger decreased by 17.8% to $44, while total ancillary revenue per passenger increased by 4.7% to $56, accounting for 56.4% of total operating revenues [11][40][44] Cost and Efficiency - The average economic fuel cost decreased by 1% to $2.61 per gallon, while CASM (cost per available seat mile) remained flat at 7.90 cents [6][12][40] - CASM excluding fuel increased by 1.7% to 5.48 cents, reflecting effective cost control despite flying fewer ASMs than planned [12][40] Balance Sheet and Liquidity - As of September 30, 2025, the company had total cash, cash equivalents, and short-term investments of $794 million, representing 27% of the last twelve months' total operating revenue [14][15][48] - The net debt-to-LTM EBITDAR ratio increased to 3.1x from 2.9x in the previous quarter, indicating a rise in leverage [6][15][40] Future Outlook - For the full year 2025, Volaris expects ASM growth of approximately 7% and an EBITDAR margin between 32% and 33% [17][18] - The company anticipates a solid start to 2026, driven by forward bookings and holiday demand trends [3][10]

Core Insights - Volaris (VLRS) is a significant player in the aviation sector, providing air travel services across Mexico, the United States, and Central America, despite facing industry challenges [1] - The consensus price target for VLRS has remained stable at $9, indicating analysts' steady outlook, while Deutsche Bank analyst Michael Linenberg has set a higher target of $12, suggesting potential upside [2] - Volaris is currently facing a 4.5% decrease in revenue and an 8.3% rise in operating expenses, resulting in a quarterly operating loss, compounded by grounded aircraft and geopolitical tensions affecting travel [3] - Despite these challenges, Volaris is considered undervalued with a potential upside of 56.9%, supported by its young, fuel-efficient fleet and substantial stored capacity for future growth [4] - The recent Q2 2025 earnings call highlighted the company's strategic initiatives and financial performance, maintaining a "Strong Buy" rating despite a 50% drop in stock price [5] Financial Performance - Volaris experienced a 4.5% decrease in revenue and an 8.3% increase in operating expenses, leading to a quarterly operating loss [3][6] - The stock has seen a 50% drop, yet it remains a "Strong Buy" due to long-term growth prospects and deep undervaluation [5][6] Market Position - Volaris is navigating several challenges but remains a significant competitor in the aviation sector [6] - Analysts believe that once operational constraints are resolved, Volaris could experience strong revenue and earnings growth [4]

Core Insights - Volaris has released its 2024 Integrated Annual Report titled "The Art of Transformation: Folding a Sustainable Future" [1] - The report is accessible on Volaris' Investor Relations webpage [1] 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 [3] - Since its inception in March 2006, Volaris has expanded its routes from 5 to over 225 and its fleet from 4 to 153 aircraft [3] - The company operates more than 450 daily flight segments connecting 44 cities in Mexico and 30 cities in the United States, Central, and South America [3] - Volaris targets cost-conscious travelers, including those visiting friends and relatives, as well as business and leisure travelers [3]

Core Insights - Volaris reported a 2.9% increase in ASM capacity and a 1.0% rise in RPMs for September 2025, with domestic RPMs up 2.2% and international RPMs down 0.9% [2][3] - The consolidated load factor decreased by 1.6 percentage points year-over-year to 83.4%, with a total of 2.4 million passengers transported in September [2][3] Traffic Performance - Domestic RPMs for September 2025 were 1,420 million, up from 1,390 million in September 2024, reflecting a 2.2% increase [3] - International RPMs decreased from 892 million in September 2024 to 884 million in September 2025, a decline of 0.9% [3] - Total RPMs increased from 2,282 million in September 2024 to 2,304 million in September 2025, marking a 1.0% rise [3] Capacity and Load Factor - Domestic ASMs rose from 1,562 million in September 2024 to 1,599 million in September 2025, a 2.4% increase [3] - International ASMs increased by 3.7% from 1,122 million in September 2024 to 1,163 million in September 2025 [3] - The overall load factor for September 2025 was 83.4%, down from 85.0% in September 2024, a decrease of 1.6 percentage points [3] Passenger Statistics - Domestic passengers transported increased from 1,714 thousand in September 2024 to 1,762 thousand in September 2025, a rise of 2.8% [3] - International passengers rose from 607 thousand in September 2024 to 614 thousand in September 2025, a 1.2% increase [3] - Total passengers transported increased from 2,321 thousand in September 2024 to 2,376 thousand in September 2025, reflecting a 2.4% growth [3] Management Commentary - The CEO of Volaris indicated that the company maintained a balanced network despite delays in aircraft delivery and emphasized stable domestic demand and resilience in international traffic [3]

Group 1 - Volaris (NYSE: VLRS), Mexico's low-cost airline, has been facing multiple headwinds, impacting its stock price negatively [1] - The company has been identified as having significant growth prospects within the aerospace, defense, and airline industry [1] - The analysis provided is data-informed, aiming to uncover investment opportunities in the aerospace sector [1] Group 2 - The investing group associated with the analysis offers direct access to data analytics monitors, enhancing investment decision-making [1] - The analyst has a background in aerospace engineering, which contributes to a deeper understanding of the industry's complexities [1]

Core Insights - Bit Soft, a leading provider of integrated hospitality technology in Romania, Hungary, France, and Bulgaria, has joined Volaris Group to support its long-term growth ambitions [1][3] - The acquisition allows Bit Soft to benefit from Volaris's global network and operational expertise while maintaining its autonomy and entrepreneurial culture [3][5] Company Overview - Bit Soft was founded in 1994 and specializes in integrated solutions for hotels, restaurants, and hospitality chains, offering products like Oracle and Protel property management systems, Simphony POS systems, and its proprietary Breeze restaurant management system [2][6] - The company serves major international and local brands, including Burger King, KFC, Subway, Pizza Hut, City Grill, and Ana Hotels [2][6] Strategic Goals - The acquisition is driven by Bit Soft's momentum to deepen its market presence and pursue geographic expansion [3][5] - Bit Soft aims to become one of the leading players in Europe, leveraging Volaris's resources to enhance its organizational maturity and innovation capabilities [4][5] Volaris Group Overview - Volaris Group focuses on acquiring, strengthening, and growing vertical market technology companies, operating under a buy-and-hold-forever philosophy [7] - The acquisition of Bit Soft reflects Volaris's commitment to investing in mission-critical software businesses within the foodservice and hospitality sectors [5][7]