Controladora Vuela Compañía de Aviación, S.A.B. de C.V. reports mixed Q3 results; reaffirms FY and initiates Q4 outlook

* Controladora Vuela Compañía de Aviación, S.A.B. de C.V. press release [https://seekingalpha.com/pr/20281152-volaris-reports-financial-results-for-the-third-quarter-2025-ebitdar-margin-of-33_6-percent] (NYSE:VLRS [https://seekingalpha.com/symbol/VLRS]): Q3 GAAP EPADS of $0.05 beats by $0.16.
* Revenue of $784M (-3.6% Y/Y) misses by $3.16M.
* Total revenue per available seat mile decreased 8% to $8.65 cents.
* Available seat miles increased by 5% to 9.1 billion.
* Total operating expenses of $716 million, compared with $687 million in the previous year.
* Total operating expenses per available seat mile remained essentially flat at $7.90 cents.
* Average economic fuel cost decreased 1% to $2.61 per gallon.
* CASM ex fuel increased 2% to $5.48 cents.
* EBITDAR of $264 million, a 16% decrease.
* EBITDAR margin was 33.6%, a decrease of 5.1 percentage points.
* Total cash, cash equivalents, and short-term investments totaled $794 million, representing 27% of the last twelve months’ total operating revenue.
* Net debt-to-LTM EBITDAR2 ratio stood at 3.1x, compared to 2.9x in the previous quarter.
*
2025 GUIDANCE

FOR THE FULL YEAR 2025, THE COMPANY EXPECTS:

2025
2024(1)

Full Year 2025 Guidance

ASM growth (YoY)
~7%
-12.6%

EBITDAR margin
32% to 33%
36.3%

CAPEX(2)
~$250 million
$350 million

Average USD/MXN rate
~Ps. 19.30
Ps. 18.30

Average U.S. Gulf Coast jet fuel price
~$2.15
$2.34

Click to enlarge

FOR THE FOURTH QUARTER OF 2025, THE COMPANY EXPECTS:

4Q’25
4Q’24(3)

4Q’25 Guidance

ASM growth (YoY)
~8%
-5.0%

TRASM
~$9.30 cents
$9.35 cents

CASM ex fuel
~$5.75 cents
$5.68 cents

EBITDAR margin
~36%
39.6%

Average USD/MXN rate
~Ps. 18.60
Ps. 20.07

Average U.S. Gulf Coast jet fuel price
~$2.20
$2.06

Click to enlarge

MORE ON CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN, S.A.B. DE C.V.

* Volaris: From Strong Buy To Buy Amid U.S. Market Turmoil [https://seekingalpha.com/article/4826485-volaris-stock-from-strong-buy-to-buy-us-market-turmoil]
* Volaris reports September load factor of 83% [https://seekingalpha.com/news/4502366-volaris-reports-september-load-factor-of-83]
* Volaris' August 2025 load factor decreases to 85% [https://seekingalpha.com/news/4491734-volaris-august-2025load-factor-decreases-to-85]
* Seeking Alpha’s Quant Rating on Controladora Vuela Compañía de Aviación, S.A.B. de C.V. [https://seekingalpha.com/symbol/VLRS/ratings/quant-ratings]
* Historical earnings data for Controladora Vuela Compañía de Aviación, S.A.B. de C.V. [https://seekingalpha.com/symbol/VLRS/earnings]