Volaris reported a $63 million net loss in the second quarter, swinging to a loss compared to its net profit of $10 million in the same period last year.
The Mexican low cost carrier's operating revenues fell 5% to $693 million, with TRASM down 12% to 7.80 cents. Operating expenses of climbed from $660 million to $715 million, with CASM flat at 8.05 cents. Excluding fuel, CASM was up 7% 5.69 cents.
The company's capacity was up 9% in the quarter, while its load factor fell 3.1 percentage point to 82.4%. Passenger numbers climbed 6.3% to 7.5 million.
Volaris reported an operating loss of $22 million, swinging from its $66 million profit, while EBITDAR dropped 25.7% to $194 million.
The company updated its 2025 guidance, with capacity now expected to grow around 7%, down from 8-9% in the full year. Volaris said its capacity allocation will be decided against customer demand and profitability.
“With improved visibility into second-half demand drivers and ongoing capacity discipline, we are reinstating our full-year guidance for EBITDAR margin, which we now expect in the range of 32% to 33%,” said Volaris president and CEO Enrique Beltranena. “Despite external geopolitical headwinds, our flexible business model and resilient cost structure enable us to moderate growth, remaining prudent and aligned with market trends."
Capital expenditure forecast remains around $250 million for the year.
For the third quarter of the year, the company expects capacity to grow around 6%, with TRASM around 8.6 cents. CASM ex fuel is expected to be around 5.5 cents. EBITDAR margin is expected to be 32-33%.
The company retired one A319ceo aircraft and added four A320neo and one A321neo to its fleet during the second quarter. As a result, the company had a total of 149 aircraft in its fleet with an average age of 6.5 years as of the end of the quarter.
The company's net debt to EBITDAR was 2.9x.