Key Highlights

  • Total operating revenues reached $1,038 million, up 32.4%, with TRASM rising 19.2% to 10.31 cents.
  • Net loss was $26 million, or 23 cents per ADS, against net income of $6 million a year earlier.
  • Average economic fuel cost rose 57.4% to $4.10 per gallon, and CASM increased 26.2% to 9.97 cents.
  • Liquidity stood at $823 million and the company issued fourth-quarter and full-year 2026 guidance.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS), known as Volaris, reported unaudited third quarter 2026 results on October 26, 2026. The ultra-low-cost carrier recorded total operating revenues of $1,038 million, a 32.4% increase, and a net loss of $26 million, or 23 cents per American Depositary Share. Figures are in U.S. dollars and compared with the third quarter of 2025 unless noted.

Revenue, Capacity and Unit Revenue

Capacity measured in available seat miles rose 11.1% to 10.1 billion, while booked passengers increased 14.3% to 9.0 million. The load factor was 85.7%, up 1.3 percentage points. Total revenue per available seat mile (TRASM) climbed 19.2% to 10.31 cents, which the company attributed mainly to a 25.5% increase in the average base fare to $55, together with an 8.4% rise in ancillary revenue per passenger to $61. Ancillary revenues represented 52.8% of operating revenues.

Costs, Earnings and Balance Sheet

Total operating expenses were $1,004 million, compared with $716 million a year earlier, and cost per available seat mile (CASM) rose 26.2% to 9.97 cents. Average economic fuel cost increased 57.4% to $4.10 per gallon. CASM excluding fuel rose 13.7% to 6.23 cents, which Volaris said was below its guidance. Operating income was $34 million versus $68 million, a 3.3% margin. EBITDAR was $263 million versus $264 million, with the margin at 25.3%, down 8.3 percentage points.

Cash, cash equivalents and short-term investments totaled $823 million, or 23.2% of last twelve months' operating revenue. Financial debt was $598 million, down 14.9% from the end of 2025. The net debt-to-LTM EBITDAR ratio was 3.3x.

Why This Could Matter

The figures relate directly to the outlook Volaris published with them. For full-year 2026, it expects ASM growth of about 5%, an EBITDAR margin of about 21% and capital expenditure of about $350 million. For the fourth quarter, it expects ASM growth near 4%, TRASM of roughly 10.90 cents, CASM excluding fuel of about 6.50 cents, an EBITDAR margin near 20% and a jet fuel price of about $4.40 per gallon.

The fleet ended the quarter at 154 aircraft. Volaris also said the proposed Mexican airline group with Viva, announced in December 2025, is expected to close in 2026, subject to regulatory approvals.

Closing Summary

Volaris reported third quarter revenue of $1,038 million and a net loss of $26 million, with fuel and unit costs higher than a year earlier. The company ended September with $823 million in liquidity and set out fourth quarter and full-year guidance, with a conference call scheduled for October 27, 2026.