Volaris Reports Financial Results for the Fourth Quarter 2025: EBITDAR Margin of 37.2%

MEXICO CITY, Feb. 24, 2026 (GLOBE NEWSWIRE) — Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE: VLRS and BMV: VOLAR) (“Volaris” or “the Company”), the ultra-low-cost carrier (ULCC) serving Mexico, the United States, Central and South America, today reports its unaudited financial results for the fourth quarter and full year 2025¹.

Enrique Beltranena, President & Chief Executive Officer, said: “In 2025, Volaris once again demonstrated the resilience of our ultra-low-cost model and the strength of our market positioning. We responded swiftly to evolving geopolitical and industry dynamics, moderating capacity to protect profitability, controlling unit costs, and preserving affordability for our customers. By year-end, improving travel sentiment and the continued evolution of our low-cost, low-complexity product offering drove higher revenue per passenger and greater penetration of higher-yielding segments.

Looking ahead to 2026, we expect approximately 7% ASM growth, aligned with our disciplined capacity deployment strategy and strategically weighted towards the cross-border market. Importantly, this outlook is supported by a meaningful reduction in engine-related aircraft on ground — from 41 in January to 25 by year-end. While the pull-forward of maintenance activity and higher redelivery accruals will temporarily pressure unit costs early in the year, these proactive actions position us to restore fleet availability sooner, improve profitability as the year progresses, and narrow the EBITDAR-to-EBIT margin spread by approximately four percentage points. We are confident in the next phase of our growth as we continue refining our network and product, maintaining operational discipline, and delivering long-term shareholder value.”

Fourth Quarter 2025 Highlights
(All figures are reported in U.S. dollars and compared to 4Q 2024, unless otherwise noted)

• Net income of $4 million. Earnings per American Depositary Share (ADS) of $4 cents.

• Total operating revenues of $882 million, a 6% increase.

• Total revenue per available seat mile (TRASM) stood at $9.35 cents, remaining effectively flat.

• Available seat miles (ASMs) increased by 6% to 9.4 billion.

• Total operating expenses of $782 million, compared with $718 million in the previous year.

• Total operating expenses per available seat mile (CASM) increased 3% to $8.29 cents.

• Average economic fuel cost increased 6% to $2.65 per gallon.

• CASM ex fuel increased 1% to $5.76 cents.

• EBITDAR remained essentially stable at $328 million.

• EBITDAR margin was 37.2%, down by 2.4 percentage points.

• Total cash, cash equivalents, and short-term investments totaled $774 million, representing 25% of the last twelve months’ total operating revenue.

• Net debt-to-LTM EBITDAR² ratio of 3.1x, remaining unchanged when compared to the previous quarter.

¹ The financial information, unless otherwise indicated, is presented in accordance with the International Financial Reporting Standards (IFRS).
² Includes short-term investments.

Full Year 2025 Highlights
(All figures are reported in U.S. dollars and compared to FY 2024, unless otherwise noted)

• Net loss of $104 million. Loss per American Depositary Share (ADS) of $91 cents.

• Total operating revenues of $3,038 million, a 3% decrease.

• Total revenue per available seat mile (TRASM) decreased 9% to $8.41 cents.

• Available seat miles (ASMs) increased 6% to 36.1 billion.

• Total operating expenses of $2,903 million, compared with $2,729 million in the previous year.

• Total operating expenses per available seat mile (CASM) remained essentially flat at $8.04 cents.

• Average economic fuel cost decreased 6% to $2.59 per gallon.

• CASM ex fuel increased 4% to $5.58 cents.

• EBITDAR of $988 million, a 13% decrease.

• EBITDAR margin was 32.5%, a decrease of 3.8 percentage points.

Fourth Quarter and Full Year 2025 Consolidated Financial and Operating Highlights
(All figures are reported in U.S. dollars and compared to 4Q 2024 and FY 2024, unless otherwise noted)

Reconciliation of CASM to Adjusted CASM ex fuel:

Fourth Quarter 2025
(All figures are reported in U.S. dollars and compared to 4Q 2024, unless otherwise noted)

Total operating revenues for the quarter amounted to $882 million, up by 5.6%.

Total capacity, in terms of available seat miles (ASMs), was 9.4 billion, representing a 5.6% increase.

Booked passengers totaled 8.2 million, a 4.4% increase. Mexican domestic booked passengers increased 2.9%, while international booked passengers increased 8.4%.

TRASM remained effectively flat at $9.35 cents, mainly driven by a 6.1% increase in total ancillary revenue per passenger, which stood at $60.

The average base fare per passenger stood at $47, a 4.4% decrease. Total operating revenue per passenger totaled $108, increasing 1.2%. During the quarter, ancillary revenues represented 55.9% of total operating revenues.

The load factor for the quarter reached 85.1%, representing a 2.2 percentage point decrease.

Total operating expenses were $782 million, compared with $718 million in the previous year.

CASM totaled $8.29 cents, up 3.2%.

The average economic fuel cost increased 5.5% to $2.65 per gallon.

CASM ex fuel increased 1.4% to $5.76 cents, reflecting strong cost control despite flying fewer ASMs than planned during the quarter, and the impact of a stronger Mexican peso.

Comprehensive financing result represented an expense of $63 million, compared to a $76 million expense in the same period of 2024.

Income tax expense was $33 million, compared with a $5 million benefit registered in the fourth quarter of 2024.

Net income in the quarter was $4 million, with earnings per ADS of $4 cents.

EBITDAR for the quarter remained stable compared to the previous year, reaching $328 million. EBITDAR margin stood at 37.2%, down 2.4 percentage points.

Cash Flow

For the fourth quarter, net cash flow provided by operating and investing activities was $252 million and $2 million, respectively. Net cash flow used in financing activities was $280 million.

Full Year 2025
(All figures are reported in U.S. dollars and compared to FY 2024, unless otherwise noted)

Total operating revenues for the year amounted to $3,038 million, a 3.3% decrease.

Total capacity, in terms of available seat miles (ASMs), was 36.1 billion, representing a 6.3% increase.

Booked passengers totaled 31.0 million, a 5.2% increase. Mexican domestic booked passengers increased 5.0%, while international booked passengers increased 5.5%.

TRASM decreased 9.0% at $8.41 cents, reflecting a lower average base fare and the impact of a 5.0% depreciation of the Mexican peso. Total operating revenue per passenger stood at $98, decreasing 8.1%.

The average base fare per passenger stood at $42, an 18.4% decrease. The total ancillary revenue per passenger was $56, reflecting a 1.6% increase. Ancillary revenues accounted for 57.1% of total operating revenues.

The load factor reached 84.3%, representing a 2.5 percentage point decrease.

Total operating expenses were $2,903 million, compared with $2,729 million in the previous year.

CASM totaled $8.04 cents, remaining essentially flat compared to 2024.

The average economic fuel cost decreased 6.0% to $2.59 per gallon.

CASM ex fuel increased 3.5% to $5.58 cents, despite flying fewer ASMs than initially planned throughout the year.

Comprehensive financing result represented an expense of $253 million, compared to a $231 million expense posted in 2024.

The Company recorded an income tax benefit of $14 million, compared with a $56 million expense registered in 2024.

For the full year 2025, Volaris reported a net loss of $104 million, with a loss per ADS of $91 cents.

Volaris registered an EBITDAR of $988 million, a 13.4% decline compared to 2024. EBITDAR margin was 32.5%, down 3.8 percentage points.

Balance Sheet, Liquidity, and Capital Allocation

As of December 31, 2025, cash, cash equivalents and short-term investments were $774 million, representing 25.5% of the last twelve months’ total operating revenue.

Net cash flow provided by operating activities was $750 million. Net cash flow used in investing and financing activities was $89 million and $819 million, respectively.

The financial debt amounted to $703 million, reflecting a 13.2% decrease, compared to the end of 2024, while total lease liabilities stood at $3,153 million, an increase of 3.0%.

Net debt-to-LTM EBITDAR⁶ ratio stood at 3.1x, consistent with the previous quarter, and compared to 2.6x at the end of 2024.

The average exchange rate for the year was Ps.19.22 per U.S. dollar, reflecting a 5.0% depreciation of the Mexican peso. At the end of the year, the exchange rate stood at Ps.17.97 per U.S. dollar, compared to Ps. 20.27 per U.S. dollar at the end of the of 2024, reflecting a 11.4% appreciation of the Mexican peso.

⁶ Includes short-term investments.

2026 Guidance

For the full year 2026, the Company expects:

(1) For convenience purposes, actual reported figures for 2025 are included.
(2) CAPEX net of financed fleet predelivery payments.

For the first quarter of 2026, the Company expects:

(3) For convenience purposes, actual reported figures for 1Q’25 are included.

The full year and first quarter 2026 outlooks presented above include the compensation that Volaris expects to receive for the projected grounded aircraft resulting from the GTF engine inspections, in accordance with the Company’s agreement with Pratt & Whitney.

The Company’s outlook is subject to unforeseen disruptions, macroeconomic factors, or other negative impacts that may affect its business and is based on several assumptions, including the foregoing, which are subject to change and may be outside the control of the Company and its management. The Company’s expectations may change if actual results vary from these assumptions. There can be no assurances that Volaris will achieve these results.

Fleet

During the fourth quarter, Volaris retired its last A319ceo aircraft and one A320ceo aircraft. The Company added three A320neo’s, and two A321neo’s to its fleet, bringing the total number of aircraft to 155. At the end of the year, Volaris’ fleet had an average age of 6.6 years and an average seating capacity of 199 passengers per aircraft. Of the total fleet, 66% of the aircraft are New Engine Option (NEO) models.

Proposed Airline Group Formation

In December 2025, Volaris announced the proposed formation of a new Mexican airline group with Viva, aimed at expanding access to affordable air travel across the region and strengthening the Mexican aviation industry. The airline group would enable two ultra-low-cost operators with complementary networks and shared customer value propositions to broaden access to point-to-point travel solutions, while retaining their independent operating certificates and brands, preserving existing passenger options. Closing is expected in 2026, subject to customary regulatory approvals and closing conditions. For more information, please visit www.anunciovivayvolaris.com.

Investors are urged to carefully read the Company’s periodic reports filed with or provided to the Securities and Exchange Commission, for additional information regarding the Company.

Investor Relations Contact

Liliana Juárez / ir@volaris.com

Media Contact
Ricardo Flores / rflores@gcya.net

Conference Call Details

About Volaris

*Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (“Volaris” or “the Company”) (NYSE: VLRS and BMV: VOLAR) is an ultra-low-cost carrier, with point-to-point operations, serving Mexico, the United States, Central and South America. Volaris offers low base fares to build its market, providing quality service and extensive customer choice. Since the beginning of operations in March 2006, Volaris has increased its routes from 5 to more than 254 and its fleet from 4 to 155 aircraft. Volaris offers more than 450 daily flight segments on routes that connect 46 cities in Mexico and 30 cities in the United States, Central and South America, with one of the youngest fleets in Mexico. Volaris targets passengers who are visiting friends and relatives, cost-conscious business and leisure travelers in Mexico, the United States, Central, and South America. For more information, please visit ir.volaris.com. Volaris routinely posts information that may be important to investors on its investor relations website. The Company encourages investors and potential investors to consult the Volaris website regularly for important information about Volaris.

Forward-Looking Statements

Statements in this release contain various forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which represent the Company’s expectations, beliefs, or projections concerning future events and financial trends affecting the financial condition of our business. When used in this release, the words “expects,” “intends,” “estimates,” “predicts,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “potential,” “outlook,” “may,” “continue,” “will,” “should,” “seeks,” “targets” and similar expressions are intended to identify forward-looking statements. Similarly, statements describing the Company’s objectives, plans or goals, or actions the Company may take in the future are forward-looking. Forward-looking statements include, without limitation, statements regarding the Company’s outlook, the expectation of receiving certain compensation in connection with the GTF engine removals, and the anticipated execution of its business plan and focus on its 2025 priorities. Forward-looking statements should not be read as a guarantee or assurance of future performance or results. They will not necessarily be accurate indications of the times at or by which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time concerning future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Forward-looking statements are subject to several factors that could cause the Company’s actual results to differ materially from the Company’s expectations, including the competitive environment in the airline industry, the Company’s ability to keep costs low; changes in fuel costs, the impact of worldwide economic conditions on customer travel behavior; the Company’s ability to generate non-ticket revenue; and government regulation. The Company’s U.S. Securities and Exchange Commission filings contain additional information concerning these and other factors. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date of this release. You should not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

Supplemental Information on Non-IFRS Measures

We evaluate our financial performance by using various financial measures that are not performance measures under International Financial Reporting Standards (“non-IFRS measures”). These non-IFRS measures include CASM, CASM ex fuel, Adjusted CASM ex fuel, EBITDAR, Net debt-to-LTM EBITDAR, Total cash, cash equivalents and short-term investments. We define CASM as total operating expenses by available seat mile. We define CASM ex fuel as total operating expenses by available seat mile, excluding fuel expense. We define Adjusted CASM ex fuel as total operating expenses by available seat mile, excluding fuel expense, aircraft and engine variable lease expenses and sale and lease back gains. We define EBITDAR as earnings before interest, income tax, depreciation and amortization, depreciation of right of use assets and aircraft and engine variable lease expenses. We define Net debt-to-LTM EBITDAR as Net debt divided by LTM EBITDAR. We define Total cash, cash equivalents and short-term investments as the sum of cash, cash equivalents and short-term investments.

These non-IFRS measures are provided as supplemental information to the financial information presented in this release that is calculated and presented in accordance with International Financial Reporting Standards (“IFRS”) because we believe that they, in conjunction with the IFRS financial information, provide useful information to management’s, analysts and investors overall understanding of our operating performance.

Because non-IFRS measures are not calculated in accordance with IFRS, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related IFRS measures presented in this release and may not be the same as or comparable to
similarly titled measures presented by other companies due to possible differences in the method of calculation and the items being adjusted.

We encourage investors to review our financial statements and other filings with the Securities and Exchange Commission in their entirety for additional information regarding the Company and not to rely on any single financial measure.