Core Insights - CDB Aviation has successfully completed a mandate to deliver five Airbus A320neo Family aircraft to Volaris, a long-standing customer [1] Company Summary - CDB Aviation is involved in the aircraft leasing industry, focusing on delivering modern aircraft to airlines [1] - Volaris is a key customer for CDB Aviation, indicating a strong business relationship between the two companies [1] Industry Summary - The delivery of Airbus A320neo Family aircraft reflects ongoing demand for modern, fuel-efficient aircraft in the airline industry [1] - The transaction highlights the competitive landscape in the aircraft leasing market, where companies like CDB Aviation are expanding their fleets to meet customer needs [1]

Core Insights - Volaris has entered a multi-year agreement with Sabre Corporation to make its content available through the SabreMosaic Travel Marketplace, marking a strategic expansion for the airline into the global distribution system (GDS) channel [1][2]. Group 1: Partnership Details - The partnership enhances SabreMosaic's position as a leading source of low-cost carrier content for travel agencies globally [2]. - Volaris operates over 220 routes across Mexico, the United States, Central America, and South America, focusing on affordable fares and high-frequency service [3][4]. - The integration into SabreMosaic will allow Volaris to reach a broader network of corporate and leisure travel agencies, expanding its market presence [3][4]. Group 2: Strategic Implications - The collaboration aims to better serve the business travel segment by integrating more efficiently with agency systems while maintaining Volaris's operational efficiency and flexibility [4]. - The addition of Volaris content to SabreMosaic will provide travel agencies with seamless access to one of the fastest-growing airlines in the region, enhancing the marketplace's offerings [5][6]. - This agreement is expected to create new revenue opportunities for both Volaris and Sabre, connecting airlines with travelers seeking affordable and flexible options [6][7]. Group 3: Market Position - SabreMosaic Travel Marketplace is positioned as one of the largest travel marketplaces globally, combining competitive fares and extensive reach with Sabre's global agency network [7]. - The platform integrates low-cost carrier content from over 150 airlines, enabling agencies to search, compare, and book options efficiently [8].

Financial Data and Key Metrics Changes - Total operating revenues for Q3 2025 were $784 million, a 4% decrease compared to Q3 2024 [24] - EBITDA reached $264 million with a margin of 33.6%, aligned with guidance [27] - Net profit was $6 million, translating to earnings per ADS of $0.05 [27] - Cash flow generated by operating activities in Q3 was $205 million, with total liquidity at $794 million [28] Business Line Data and Key Metrics Changes - Domestic load factor reached 89.8%, consistent with last year's levels, reflecting stable demand [6][14] - International load factor was at 77%, prioritizing yield over loads to optimize profitability [14] - Average ancillary revenue per passenger for Q3 was $56, consistently above $50 for eight consecutive quarters [15] Market Data and Key Metrics Changes - The recovery in cross-border demand is evident, with traffic improving month over month [6][15] - Booking trends in the US-Mexico transborder market show sustained improvement compared to last year [40][54] Company Strategy and Development Direction - The company is focused on maintaining a disciplined growth strategy, with a capacity growth outlook of approximately 7% for 2025 [7][23] - Volaris aims to enhance its ultra-low-cost carrier model by expanding ancillary products and optimizing distribution channels [11][21] - The company is adapting its fleet plan to ensure flexibility in response to demand trends [8][31] Management's Comments on Operating Environment and Future Outlook - Management noted that demand momentum is building, with a stable domestic demand and improved travel sentiment in cross-border markets [4][5] - The company expects to close 2025 and enter 2026 stronger and more efficient, with a focus on capturing opportunities and driving sustained profitability [12][36] Other Important Information - The company has a favorable position with an order book of 122 aircraft, with 84% being A320neo to A321neo models [31] - Volaris is leveraging technology to enhance customer service, with 79% of customer interactions now handled through digital channels [22] Q&A Session Summary Question: Can you elaborate on the stronger-than-normal seasonality in international markets and the inflection point in the US-Mexico transborder market? - Management indicated that since mid-August, sales in the US-Mexico transborder market have been above last year's levels, showing optimism for Q4 traffic evolution [40] Question: How many lease returns are expected next year, and how does that compare to this year? - Management expects 17 re-deliveries next year compared to 7 this year, emphasizing the importance of managing capacity in line with consumer demand [42] Question: What is the expected RASM uplift from new initiatives? - Management expects a positive year-over-year impact on RASM from new products starting in 2026, with specific targets to be communicated in future guidance [46] Question: How will the customer mix diversification impact costs? - Management assured that broadening the customer base will not significantly impact costs or complexity, maintaining a low-cost model [48] Question: What is the outlook for grounded aircraft and AOGs? - Management anticipates an average of 32-33 grounded aircraft next year, with a goal of no material impacts from AOGs by the end of 2027 [57][71] Question: What is the expected CapEx for 2026 compared to 2025? - Management indicated that CapEx for 2026 is expected to be higher than the $250 million planned for 2025 due to maintenance and re-delivery investments [61]

Financial Data and Key Metrics Changes - Total operating revenues for Q3 2025 were $784 million, a 4% decrease compared to the same period in 2024 [24] - EBITDA reached $264 million with a margin of 33.6%, aligned with guidance for the quarter [27] - Net profit was $6 million, translating to earnings per ADS of $0.05 [27] - Cash flow generated by operating activities in Q3 was $205 million, with total liquidity at $794 million, representing 27% of the last 12 months' total operating revenues [28] Business Line Data and Key Metrics Changes - The load factor in the Mexican market reached 89.8%, consistent with last year's levels, while the international load factor was at 77% [6][14] - Average ancillary revenue per passenger for Q3 was $56, marking the eighth consecutive quarter above the $50 threshold [15] - TRASM for Q3 reached $0.0865, down 7.7% year over year, but improved from declines of 17% and 12% in the first and second quarters, respectively [16] Market Data and Key Metrics Changes - Domestic demand remained stable with a rational supply environment, supporting healthier yields [4][6] - Cross-border demand showed a steady recovery, with traffic improving month over month and holiday bookings trending ahead of last year [6][15] - The US-Mexico transborder market has seen sales above last year's levels since mid-August, indicating a positive trend [40] Company Strategy and Development Direction - The company is focused on maintaining cost efficiency while adapting quickly to market conditions, with a capacity growth outlook of approximately 7% for the full year 2025 [7][8] - Volaris aims to enhance its ultra-low-cost carrier model by expanding its product suite and optimizing distribution channels [11][17] - The company is committed to controlling growth with discipline, aligning capacity with market demand [8][36] Management's Comments on Operating Environment and Future Outlook - Management noted that demand momentum is building, with a recovery anticipated for the second half of the year [4] - The geopolitical disruptions have not significantly impacted travel sentiment, which has improved in the cross-border market [4] - The company expects to close 2025 and enter 2026 stronger and more efficient, with sustained profitability [12] Other Important Information - The company has an order book of 122 aircraft, with 84% being A320neo to A321neo models [31] - The average age of the fleet is 6.6 years, with two-thirds being new models [30] - The introduction of AI agents has improved customer service efficiency, with 79% of interactions now handled through digital channels [22] Q&A Session Summary Question: Can you elaborate on the stronger-than-normal seasonality in international markets and the inflection point in the US-Mexico transborder market? - Management indicated that since mid-August, sales in the US-Mexico transborder market have been above last year's levels, showing sustained improvement in booking trends [40] Question: How many lease returns are expected next year, and how does that compare to this year? - The company is budgeting for 17 re-deliveries next year compared to 7 this year, emphasizing the importance of managing capacity in line with consumer demand [42] Question: What is the expected RASM uplift from new initiatives? - Management expects a positive year-over-year impact on RASM from new commercial initiatives starting in 2026 [46] Question: How will the customer mix diversification affect costs? - The company plans to broaden its customer base while maintaining a low-cost, low-complexity model, with no significant impact on costs expected [48] Question: What is the outlook for grounded aircraft and AOGs? - The average number of AOGs is expected to improve to around 32-33 next year, with a goal of no material impacts by the end of 2027 [57][71] Question: What is the expected CapEx for 2026 compared to 2025? - The company expects CapEx for 2026 to be higher than the $250 million planned for 2025 due to investments in maintenance and aircraft re-delivery [61]

Financial Data and Key Metrics Changes - Total operating revenues for Q3 2025 were $784 million, a 4% decrease year-over-year [23] - EBITDA reached $264 million with a margin of 33.6%, aligned with guidance [25] - Net profit was $6 million, translating to earnings per ADS of $0.05 [25] - CASM was $0.079, virtually flat compared to Q3 2024, while CASM ex-fuel was $0.0548, up 2% [23][25] - The net debt to EBITDA ratio stood at 3.1 times, with a total liquidity position of $794 million [26][27] Business Line Data and Key Metrics Changes - Domestic load factor reached 89.8%, consistent with last year's levels, while international load factor was at 77% [12][14] - Average ancillary revenue per passenger for Q3 was $56, consistently above $50 for eight consecutive quarters [14] - TRASM for Q3 was $0.0865, down 7.7% year-over-year but improved from previous quarters [15] Market Data and Key Metrics Changes - Stable domestic demand was observed, with a rational supply environment supporting healthier yields [4] - Cross-border demand showed a steady recovery, with booking trends improving month-over-month [4][14] - The company noted an inflection point in the US-Mexico transborder market, with sales above last year's levels since mid-August [38] Company Strategy and Development Direction - The company is focused on maintaining cost efficiency while adapting to market conditions, with a capacity growth outlook of approximately 7% for 2025 [5][22] - Volaris aims to enhance its ultra-low-cost carrier model by expanding ancillary products and optimizing distribution channels [10][19] - The company is committed to controlling growth with discipline, aligning capacity with market demand [6][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in demand, particularly in the cross-border market, and expects solid booking trends for the holiday season [12][14] - The company anticipates a healthier yield environment due to supply rationalization in the domestic market [22] - Management emphasized the importance of flexibility in fleet planning to respond to demand trends and market conditions [5][30] Other Important Information - The company has a favorable fleet plan with an order book of 122 aircraft, primarily A320neo to A321neo models [30] - Volaris is enhancing customer service through technology, with 79% of customer interactions now handled digitally [21] - The company launched its in-house loyalty program, Altitude, which has seen strong early response [17] Q&A Session Summary Question: Can you elaborate on the stronger-than-normal seasonality in international markets and the inflection point in the US-Mexico transborder market? - Management noted that since mid-August, sales in the US-Mexico transborder market have been above last year's levels, indicating improved demand and capacity management [38] Question: What are the expected lease returns next year and how do they compare to this year? - The company is budgeting for 17 re-deliveries next year compared to 7 this year, emphasizing the importance of managing capacity in line with consumer demand [40] Question: How should we think about the potential RASM uplift from new initiatives? - Management expects a positive year-over-year impact on RASM from new products starting in 2026, with specific targets to be communicated in future guidance [42][44] Question: What is the expected number of grounded aircraft throughout 2026? - The average number of grounded aircraft is expected to improve to around 32-33 next year, with a goal of no material impacts by the end of 2027 [52][61] Question: How does the company view competition in 2026? - Management anticipates that competition will remain rational, supporting a healthier fare environment, with low to mid single-digit growth budgeted for the domestic market [66]

3Q'25 Performance and Outlook - Volaris reiterates its full-year 2025 ASM growth target of approximately 7%[13] - The company aims for an EBITDAR margin in the range of 32% to 33% for FY25[13] - Volaris is targeting a capacity growth of 6% to 8% in 2026, with potential adjustments based on demand and OEM developments[13] - For 4Q'25, Volaris projects ASM growth of approximately 8%[45] and an EBITDAR margin of around 36%[45] Financial Results (3Q'25) - Total operating revenues reached $784 million, a decrease of 3.6% compared to 3Q'24[39] - TRASM (Total Revenue per Available Seat Mile) was $5.48 cents, a 1.7% increase from 3Q'24[39] - CASM ex fuel (Cost per Available Seat Mile excluding fuel) was $8.65 cents, a decrease of 7.7% compared to 3Q'24[39] - EBITDAR was $264 million, a decrease of 16.2% compared to 3Q'24[39], with an EBITDAR margin of 33.6%[39] - Net income was $6 million, compared to $37 million in 3Q'24[39] Strategic Initiatives - The company's ancillary revenue per passenger has remained above $50 for eight consecutive quarters[27] - Volaris has over 1 million cardholders for its co-branded credit card, which accounts for one third of direct-channel sales[31] - Guadalajara has +90 million passengers since 2006[16]

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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]