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]

Group 1 - The ultra-low-cost carrier model is still viable in the U.S., according to Frontier Airlines CEO Barry Biffle, despite claims from industry peers that it is struggling [1] - Frontier Airlines aims to become the leading low-fare carrier in the top 20 U.S. metropolitan areas and intends to fill the market gap left by Spirit Airlines, which recently filed for bankruptcy protection for the second time in a year [1] - Biffle noted that the domestic airline market is currently oversupplied, which is negatively impacting yields across the industry [2] Group 2 - Biffle predicts that within the next one to two years, there will be a reduction in the number of seats available across both ultra-low-cost carriers and legacy carriers [2] - United Airlines CEO Scott Kirby has criticized the no-frills airline business model, questioning its long-term viability [2][3] - Kirby described the ultra-low-cost airline business model as "an interesting experiment" that has ultimately "failed" [3]