Volaris (VOLARA) Q2 2026 earnings summary

Executive summary

• Achieved record second-quarter TRASM of 9.49 cents, up 21.5% year-over-year, driven by fare increases and strong demand in both domestic and international markets.

• Responded to record-high fuel costs with disciplined capacity management, network optimization, and fare calibration, ensuring all routes were cash positive in Q2 2026.

• Ended Q2 with $824 million in cash, up $58 million sequentially, and maintained strong liquidity and balance sheet flexibility, representing 25% of last 12 months' revenues.

• Expanded international network, with international ASMs reaching 43% of total, driving revenue growth and network diversification.

• Achieved highest fuel efficiency in company history, improving ASMs per gallon by 3.3% year-over-year to 109.2.

Financial highlights

• Total operating revenues reached $859 million, up 24% year-over-year on 2% capacity growth.

• TRASM increased 21.5% year-over-year to 9.49 cents, with a 10% sequential increase from Q1.

• EBITDAR margin was 16.3%, above guidance, while EBIT was negative $99 million and net loss was $127 million, mainly due to a $137 million fuel expense increase.

• Ancillary revenues per passenger rose 9% to $59, representing 56% of total revenues.

• CASM was 10.58 cents, up 31% year-over-year, driven by a 70% increase in fuel cost per gallon; CASM ex-fuel was 6.75 cents, below guidance.

Outlook and guidance

• Q3 2026 ASM growth expected at ~10% year-over-year, with TRASM of ~9.90 cents and EBITDAR margin of ~22%.

• Full-year 2026 ASM growth guided at ~5%, EBITDAR margin at ~23%, and CapEx of ~$350 million.

• Fleet recovery on track, with AOGs expected to remain in the low to mid-20s for the rest of the year.

• By end of 2027, contractual fleet to reduce to ~137 aircraft, lowering lease liabilities by ~$400 million and generating ~$50 million annual lease savings.

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