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]