Core Insights - Volaris reported a 1.1% increase in ASM capacity for October 2025, while RPMs declined by 0.6% compared to the previous year [2][3] - The consolidated load factor decreased by 1.5 percentage points year-over-year to 85.9%, with domestic RPMs down 1.9% and international RPMs up 1.4% [2][3] - The company transported 2.6 million passengers in October 2025, reflecting a healthy domestic demand and improving cross-border booking trends [3] Traffic Results - **RPMs (million)**: - Domestic: 1,520 (down 1.9% from 1,549 in October 2024) - International: 972 (up 1.4% from 959 in October 2024) - Total: 2,493 (down 0.6% from 2,509 in October 2024) [3] - **ASMs (million)**: - Domestic: 1,670 (down 0.9% from 1,685 in October 2024) - International: 1,231 (up 3.8% from 1,185 in October 2024) - Total: 2,901 (up 1.1% from 2,870 in October 2024) [3] - **Load Factor (%)**: - Domestic: 91.0% (down 0.9 pp from 92.0% in October 2024) - International: 79.0% (down 1.9 pp from 80.9% in October 2024) - Total: 85.9% (down 1.5 pp from 87.4% in October 2024) [3] - **Passengers (thousand)**: - Domestic: 1,874 (down 0.3% from 1,880 in October 2024) - International: 679 (up 3.2% from 657 in October 2024) - Total: 2,553 (up 0.6% from 2,537 in October 2024) [3] Year-to-Date Performance - **YTD RPMs (million)**: - Domestic: 15,373 (up 2.8% from 14,949 in YTD October 2024) - International: 9,553 (up 3.1% from 9,269 in YTD October 2024) - Total: 24,926 (up 2.9% from 24,217 in YTD October 2024) [3] - **YTD ASMs (million)**: - Domestic: 17,290 (up 4.7% from 16,522 in YTD October 2024) - International: 12,300 (up 7.8% from 11,408 in YTD October 2024) - Total: 29,590 (up 5.9% from 27,930 in YTD October 2024) [3] - **YTD Load Factor (%)**: - Domestic: 88.9% (down 1.6 pp from 90.5% in YTD October 2024) - International: 77.7% (down 3.6 pp from 81.2% in YTD October 2024) - Total: 84.2% (down 2.5 pp from 86.7% in YTD October 2024) [3] - **YTD Passengers (thousand)**: - Domestic: 18,762 (up 5.2% from 17,839 in YTD October 2024) - International: 6,594 (up 4.3% from 6,322 in YTD October 2024) - Total: 25,357 (up 4.9% from 24,162 in YTD October 2024) [3]

Core Insights - Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) reported a net loss of $63 million for Q2 2025, a significant decline compared to a net income of $10 million in Q2 2024, reflecting challenges in revenue generation and increased operating expenses [5][12][40]. Financial Performance - Total operating revenues for Q2 2025 were $693 million, down 4.5% from $726 million in Q2 2024, primarily due to lower unit revenues [4][8][42]. - Total operating expenses increased to $715 million, an 8.3% rise from $660 million in the previous year, driven by higher maintenance costs and lease expenses [4][10][42]. - EBITDAR for the quarter was $194 million, a decrease of 25.7% from $261 million in Q2 2024, with an EBITDAR margin of 27.9%, down 8.0 percentage points [4][12][32]. Operational Metrics - Available seat miles (ASMs) increased by 8.7% to 8.9 billion, while the load factor decreased to 82.4%, down 3.1 percentage points from 85.5% in the previous year [4][8][33]. - The number of booked passengers rose by 6.3% to 7.5 million, with domestic and international passengers increasing by 6.6% and 5.2%, respectively [8][33]. Cost Structure - The average economic fuel cost decreased by 14% to $2.46 per gallon, contributing to a slight decline in total operating expenses per available seat mile (CASM) to $8.05, down 0.3% [5][10][32]. - CASM excluding fuel increased by 6.7% to $5.69, reflecting ongoing cost control measures despite operational challenges [10][32]. Guidance and Outlook - The company reinstated its full-year guidance for EBITDAR margin, now expected to be in the range of 32% to 33% for 2025, despite external geopolitical challenges [3][17]. - For Q3 2025, Volaris anticipates ASM growth of approximately 6% and a TRASM of around $8.6 cents, indicating a cautious but optimistic outlook [17][18]. Balance Sheet and Liquidity - As of June 30, 2025, total cash, cash equivalents, and short-term investments amounted to $788 million, representing 26% of the last twelve months' total operating revenue [13][50]. - The net debt-to-LTM EBITDAR ratio stood at 2.9x, consistent with the previous quarter, indicating stable leverage despite the operational losses [14][50]. Fleet and Capacity - The fleet size increased to 149 aircraft, with the addition of four A320neo and one A321neo, reflecting a strategy to modernize and expand capacity [21][22]. - The average age of the fleet is 6.5 years, with 63% of the aircraft being New Engine Option (NEO) models, enhancing fuel efficiency and operational performance [21][22].