Volaris, the Mexican low-cost carrier, has posted its Q4 2025 results, and while it ended the last quarter of the year with a net profit, it was loss-making in 2025.
Loss-making year
The airline ended Q4 2025 with a net profit of $4 million, compared to $46 million in Q4 2024. The full-year loss was $104 million, compared to a net profit of $126 million in 2024.
Enrique Beltranena, the President and Chief Executive Officer (CEO) of Volaris, said that in 2025, the airline showcased “the resilience of our ultra-low-cost model and the strength of our market positioning.”
“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.”
18% lower average fares
The average fare per passenger was $42 in 2025, down 18.4% compared to 2024, while the base fare in Q4 2025 was $47, 4.4% lower YoY.
The decline in average fares was somewhat offset by rising ancillary revenues. In Q4 2025 and 2025, ancillary revenue per passenger was $60, up 6.1% YoY in Q4 2025, while during the year, the average ancillary revenue was $56, increasing by 1.6% YoY.
While Beltranena did not specifically say what drove Volaris’ fare decline in 2025, the chief executive did point out that the airline had to swiftly respond to “evolving geopolitical and industry dynamics.”
“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.”
Unit revenue, or total revenue per available seat mile (TRASM), was down 9% in 2025 and flat in Q4 2025. Unit costs, or cost per ASM (CASM), were flat in 2025 and 3.2% higher in the last quarter of the year.
In 2025, capacity grew by 6.3% YoY. In Q4 2025, ASMs increased by 5.6% YoY.
Confidence in the next phase of growth
Beltranena added that Volaris will grow its capacity by around 7% in 2026, which is aligned with its “disciplined capacity deployment strategy and strategically weighted towards the cross-border market.”
“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.”
In 2026, Volaris’ EBITDAR margin is guided at 33%, compared to 32.5% in 2025.
In Q1 2026, capacity will increase by around 3%, with TRASM expected to come in at 8.5¢, up 9.5% compared to the same quarter last year.
CASM excluding fuel (CASM-ex) for Q1 2026 is guided at 6¢, compared to 5.4¢ in Q1 2025.
Volaris estimated that the quarterly EBITDAR margin will be slightly lower in Q1 2026, around 25%, compared to 29.9% in Q1 2025.
