Volaris Q2 2025 Earnings Call Transcript: Financial Results and Outlook

Volaris reported Q2 2025 financial results, with details to be discussed by President and CEO Enrique Beltranena, Airline Executive Vice President Holger Blankenstein, and Chief Financial Officer Jaime Pous. The call is for investors and analysts only and may include forward-looking statements.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE: VLRS), known as Volaris, presented its Q2 2025 financial results, highlighting a net loss of $63 million despite a 6.3% increase in passenger numbers. The Mexican ultra-low-cost carrier reported total operating revenues of $693 million, a 4.5% decrease from the previous year. The company's Total Revenue per Available Seat Mile (TRASM) decreased by 12.2% to 7.80 cents, reflecting significant pressure on revenue [1].

Volaris's operations saw a decrease in load factor to 82.4%, a 3.1 percentage point drop year-over-year. EBITDAR fell to $194 million, with a margin decrease of 8.0 percentage points year-over-year, now standing at 27.9% [1]. Despite these challenges, Volaris maintains a strong liquidity position with $788 million in cash and short-term investments, supporting 26.1% of the last twelve months' total operating revenue [1].

During the earnings call, Enrique Beltranena, President and CEO, emphasized Volaris' resilience and adaptability. He noted that the company achieved a 28% EBITDAR margin, which ranks near the top of the North American airline industry. Beltranena highlighted proactive capacity adjustments, strong ancillary revenues, and a focus on cost efficiency. The company is embedding additional flexibility into its fleet plan for 2026 and is targeting ASM growth in the mid-single digits, with the ability to adjust capacity up or down about 3 percentage points in either direction [2].

Holger Blankenstein, Executive Vice President, discussed new initiatives such as decoupling airport use fees from ticket purchases to stimulate demand and launching a summer campaign for international travelers. He also announced the launch of the in-house loyalty program, Altitude, aimed at increasing repeat travel and customer retention. Blankenstein noted that nearly 30% of bookings include at least one membership product, signaling strong customer engagement [2].

Jaime Pous, Senior VP & CFO, reported that total operating revenues were $693 million, a 5% decrease. EBITDAR reached $194 million with a margin of 28%, which came in above the guidance provided for the quarter. He added that the company incurred a net loss of $63 million, translated into a loss per ADS of $0.55. The company reinstated its full-year EBITDA margin guidance, aiming for a 32-33% margin despite the Q2 challenges [2].

Looking forward, Volaris plans to manage future growth cautiously, with updated ASM growth guidance of approximately 7% for the full year 2025. The company is committed to leveraging its flexible business model and resilient cost structure to navigate external challenges and capitalize on long-term market opportunities [1].

References:
[1] https://www.gurufocus.com/news/2992032/volaris-reports-financial-resultsfor-the-second-quarter-2025-vlrs-stock-news
[2] https://seekingalpha.com/news/4470197-volaris-reinstates-32-percentminus-33-percent-full-year-ebitda-margin-guidance-as-demand