Volaris (VOLARA) Q1 2026 earnings summary

Executive summary

• Total operating revenues reached $770 million in 1Q'26, up 14% year-over-year, driven by resilient demand, higher fares, and strong ancillary revenue growth.

• Net loss widened to $71 million, or $0.62 per ADS, reflecting higher fuel and operating costs and margin pressure.

• Disciplined growth, revenue quality enhancement, and active fleet management remain priorities amid volatile fuel prices and geopolitical uncertainty.

• Strategic pricing and capacity adjustments, especially in the transborder market, are being implemented to offset fuel cost increases.

• Load factor remained strong at 85%, with 7.7 million passengers carried, up 4.5% year-over-year.

Financial highlights

• TRASM was $0.0862, up 11% year-over-year, driven by a 10% increase in base fare and strong ancillary performance.

• Ancillary revenues accounted for 57% of total revenues, with per-passenger ancillary revenue up 7.8% to $57.

• EBITDA/EBITDAR margin was 22.9%, two points below guidance due to higher fuel costs; EBIT was -$21 million (-2.8% margin).

• Net loss margin deteriorated to 9.3% from 7.6% a year ago.

• Cash flow from operations was $251 million; liquidity stood at $767 million (24.5% of LTM revenues).

Outlook and guidance

• Full-year 2026 ASM growth now expected at 4%, down from 7%, with further flexibility as conditions evolve.

• Second quarter 2026 guidance: ASM growth 0%-2% YoY, TRASM ~$0.095, CASM ex-fuel ~$0.068, EBITDA/EBITDAR margin ~13%.

• Full-year guidance suspended due to jet fuel volatility and geopolitical uncertainty; update to be provided when conditions stabilize.

• Expect higher fuel recapture rates and margin improvement in the second half as pricing actions fully materialize.

• Guidance includes expected compensation for grounded aircraft due to GTF engine inspections.