Volaris earnings for the third quarter of 2026 showed revenue exceeding $1 billion as higher fares and passenger traffic lifted sales. But expenses grew faster than revenue, halving operating profit and leaving the Mexican airline with a $26 million net loss. The unaudited results were released on October 26.
Key Takeaways
- Revenue rose 32.4% to $1.038 billion as passenger numbers and revenue per passenger increased.
- Operating expenses climbed 40.2%, while average economic fuel cost rose 57.4% per gallon.
- Volaris forecast an approximately 21% EBITDAR margin for full-year 2026, with its outlook including expected engine-related compensation.
Volaris earnings reflect stronger fares and traffic
Volaris carried about 9 million booked passengers in the quarter ended September 30, up 14.3% from a year earlier. Capacity, measured in available seat miles, increased 11.1%, while the load factor rose to 85.7% from 84.4%.
The airline’s ultra-low-cost operating model combines low base fares with customer choice across point-to-point services in Mexico, the United States, Central America and South America. In the third quarter, ancillary revenue accounted for 52.8% of total operating revenue.
Average base fare increased 25.5% to $55, and ancillary revenue per passenger rose 8.4% to $61. Together, those gains helped lift total revenue per available seat mile, or TRASM, by 19.2% to 10.31 cents.
Chief Executive Enrique Beltranena attributed the commercial performance to stronger fares and ancillary revenue, supported by demand, the expanding transborder network and capacity allocation.
| Item | Details |
|---|---|
| Full-year 2026 capacity growth | Approximately 5% year over year, measured in available seat miles |
| Full-year 2026 EBITDAR margin | Approximately 21% |
| Full-year 2026 capital expenditure | Approximately $350 million, net of financed fleet predelivery payments |
| Fourth-quarter 2026 capacity growth | Approximately 4% year over year |
| Fourth-quarter 2026 EBITDAR margin | Approximately 20% |
Higher costs squeeze operating profit
Operating expenses reached $1.004 billion, compared with $716 million in the third quarter of 2025. Operating profit fell to $34 million from $68 million, despite the substantial increase in revenue.
Average economic fuel cost rose 57.4% to $4.10 per gallon. Total cost per available seat mile, or CASM, increased 26.2% to 9.97 cents. Excluding fuel, unit costs rose 13.7% to 6.23 cents, although Volaris said that result was below guidance because higher-than-planned capacity improved fixed-cost absorption and cost efficiencies continued.
The net loss of $26 million, equivalent to 23 cents per American Depositary Share, compared with net income of $6 million a year earlier. Financing expenses increased to $75 million from $59 million, partly offset by a $15 million income-tax benefit.
EBITDAR was broadly unchanged at $263 million, but its margin declined to 25.3% from 33.6%. EBITDAR is a supplemental non-IFRS earnings measure and is not a substitute for operating or net income.
Liquidity holds as financial debt declines
Cash, cash equivalents and short-term investments totaled $823 million at September 30, broadly unchanged from the previous quarter, management said.
Financial debt stood at $598 million, down 14.9% from the end of 2025. Lease liabilities increased 1.4% over the same period to $3.196 billion. Net debt to trailing-12-month EBITDAR was 3.3 times, unchanged from the preceding quarter.
Guidance includes expected engine compensation
Volaris issued the following fourth-quarter and full-year 2026 forecasts. These are management expectations, not completed results.
For the fourth quarter, the airline expects TRASM of approximately 10.90 cents and CASM excluding fuel of approximately 6.50 cents. Its assumptions include an average U.S. Gulf Coast jet fuel price of about $4.40 per gallon and an exchange rate of approximately 18.70 Mexican pesos per U.S. dollar.
Both outlooks include compensation Volaris expects to receive from Pratt & Whitney for projected aircraft groundings related to GTF engine inspections. The company cautioned that changes in fuel prices, economic conditions and other assumptions could affect actual results.
Next milestone
Volaris scheduled its earnings conference call for October 27, 2026, at 9 a.m. Mexico City time, or 11 a.m. New York time, to discuss the results and outlook.
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