Volaris and Viva Merge to Form New Airline Group, Enhancing Low-Fare Travel
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
0mins
Should l Buy VLRS?
Source: Globenewswire
- Merger Agreement: Volaris and Viva have entered into an agreement to form a new airline group in 2026, aimed at expanding low-fare travel accessibility in Mexico and internationally, which is expected to significantly enhance the market competitiveness of both airlines.
- Economies of Scale: The new group will realize economies of scale through lowered fleet ownership costs and improved access to capital, thereby strengthening its financial profile and supporting sustainable growth while reducing operational costs.
- Passenger Choice Preservation: Post-merger, Volaris and Viva will continue to operate independently, retaining existing routes and brands, ensuring that passenger choices remain intact while enhancing the convenience of point-to-point travel.
- Community and Economic Development: The establishment of the new airline group is expected to create between 55 and 60 direct jobs per new service aircraft, while also driving economic development and tourism growth across Mexico through increased flights and new operational bases.
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Analyst Views on VLRS
Wall Street analysts forecast VLRS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VLRS is 10.62 USD with a low forecast of 8.00 USD and a high forecast of 12.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 10.200
Low
8.00
Averages
10.62
High
12.00
Current: 10.200
Low
8.00
Averages
10.62
High
12.00
About VLRS
Controladora Vuela Compania de Aviacion SAB de CV is a Mexico-based company engaged in the airline passenger transportation sector. The Company operates as an ultra-low-cost carrier (ULCC). Its activities are divided into two geographical regions: Mexico (national operations), as well as the Unites States and Central America (international operations). The Company offers direct, point-to-point flights. The Company serves through secondary, lower cost airports and provides a single class of service. Its fleet includes a number of Airbus aircrafts, such as A319, A320 and A321. The Company operates through Comercializadora Volaris SA de CV, Servicios Corporativos Volaris SA de CV and Servicios Operativos Terrestres Volaris SA de CV, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Volaris Reports 3 Million Passengers in December 2025, International RPMs Up 10.7%
- Passenger Growth: In December 2025, Volaris transported 3 million passengers, a 7.2% increase year-over-year, indicating a recovery in market demand, particularly in the cross-border VFR segment.
- Capacity Expansion: Volaris' available seat miles (ASM) increased by 9.5% in December to 3,461 million, demonstrating the company's proactive efforts to expand its route network and enhance service capabilities.
- International Market Performance: International revenue passenger miles (RPM) rose by 10.7% to 1,231 million, reflecting strong demand and competitiveness in the international market.
- Load Factor Decline: Despite an overall load factor decrease of 3.5 percentage points to 84.1%, the company remains focused on flexibility and execution to navigate market challenges and enhance passenger value.
See More
Volaris Rises Following Merger Announcement with Viva Aerobus
Merger Announcement: Mexican airlines Volaris and Viva Aerobus have announced a merger of equals, creating a new low-cost airline group where both will own 50% of the combined entity.
Operational Independence: The airlines will maintain their current operations and brands, ensuring existing passenger options while expanding point-to-point travel solutions.
Regulatory Approval Needed: The merger has been unanimously approved by both companies' boards but requires antitrust and aviation regulatory clearances, as well as shareholder approval.
Growth Expectations: The merger is anticipated to provide significant benefits to employees, passengers, and shareholders, with expectations of growth in the Mexican air travel market.
See More
Volaris and Viva Merge to Form New Airline Group, Enhancing Low-Fare Travel
- Merger Agreement: Volaris and Viva have entered into an agreement to form a new airline group in 2026, aimed at expanding low-fare travel accessibility in Mexico and internationally, which is expected to significantly enhance the market competitiveness of both airlines.
- Economies of Scale: The new group will realize economies of scale through lowered fleet ownership costs and improved access to capital, thereby strengthening its financial profile and supporting sustainable growth while reducing operational costs.
- Passenger Choice Preservation: Post-merger, Volaris and Viva will continue to operate independently, retaining existing routes and brands, ensuring that passenger choices remain intact while enhancing the convenience of point-to-point travel.
- Community and Economic Development: The establishment of the new airline group is expected to create between 55 and 60 direct jobs per new service aircraft, while also driving economic development and tourism growth across Mexico through increased flights and new operational bases.
See More
Volaris and Viva Merge to Enhance Low-Fare Air Travel in Mexico
- Merger Agreement: Volaris and Viva have entered into a merger agreement aimed at expanding low-fare air travel through a newly established holding company, which is expected to enhance the market competitiveness and financial profiles of both airlines.
- Brand Independence Maintained: Post-merger, Volaris and Viva will retain their individual brands and operations, ensuring passenger choice remains unchanged while expanding routes and services to enhance customer loyalty.
- Economies of Scale: The new airline group will achieve economies of scale, reducing fleet ownership costs and improving access to capital, enabling both airlines to offer more competitive low fares to a broader customer base.
- Job Creation and Economic Development: The merger is expected to create 55 to 60 direct jobs per new aircraft service added, driving economic growth across Mexico and revitalizing tourism and related industries.
See More
Volaris Accomplishes EASA-Mandated Inspections Without Interrupting Services
Successful Compliance: Volaris has completed all inspections and repairs required by the European Union Aviation Safety Agency (EASA) related to a flight-control software issue affecting A320-family aircraft.
Operational Efficiency: The airline managed to implement the necessary updates without canceling any flights, resulting in only minimal delays for passengers.
Financial Impact: Volaris anticipates no significant financial repercussions from the compliance process due to the efficient handling of the situation.
Commitment to Safety: The swift response underscores Volaris's operational resilience and dedication to maintaining passenger confidence in their services.
See More
Volaris Completes EASA Directive Inspections, Ensures Flight Schedule Integrity
- Inspection Completion: Volaris successfully completed all inspections and repairs required under the EASA airworthiness directive affecting approximately 6,000 A320-family aircraft, ensuring flight safety and reliability.
- Flight Schedule Integrity: Throughout the process, Volaris experienced zero flight cancellations and only minor delays, ensuring that passenger travel experiences remained largely unaffected, showcasing the company's operational excellence.
- Financial Impact: The incident is not expected to have any material financial impact, further solidifying Volaris's competitive position in the ultra-low-cost airline market.
- Safety Commitment: Volaris reaffirmed its commitment to operational excellence and safety leadership, highlighting its ability to swiftly respond to manufacturer and regulatory mandates while prioritizing customer experience.
See More
Volaris Reports 3 Million Passengers in December 2025, International RPMs Up 10.7%
- Passenger Growth: In December 2025, Volaris transported 3 million passengers, a 7.2% increase year-over-year, indicating a recovery in market demand, particularly in the cross-border VFR segment.
- Capacity Expansion: Volaris' available seat miles (ASM) increased by 9.5% in December to 3,461 million, demonstrating the company's proactive efforts to expand its route network and enhance service capabilities.
- International Market Performance: International revenue passenger miles (RPM) rose by 10.7% to 1,231 million, reflecting strong demand and competitiveness in the international market.
- Load Factor Decline: Despite an overall load factor decrease of 3.5 percentage points to 84.1%, the company remains focused on flexibility and execution to navigate market challenges and enhance passenger value.
See More
Volaris Rises Following Merger Announcement with Viva Aerobus
Merger Announcement: Mexican airlines Volaris and Viva Aerobus have announced a merger of equals, creating a new low-cost airline group where both will own 50% of the combined entity.
Operational Independence: The airlines will maintain their current operations and brands, ensuring existing passenger options while expanding point-to-point travel solutions.
Regulatory Approval Needed: The merger has been unanimously approved by both companies' boards but requires antitrust and aviation regulatory clearances, as well as shareholder approval.
Growth Expectations: The merger is anticipated to provide significant benefits to employees, passengers, and shareholders, with expectations of growth in the Mexican air travel market.
See More
Volaris and Viva Merge to Form New Airline Group, Enhancing Low-Fare Travel
- Merger Agreement: Volaris and Viva have entered into an agreement to form a new airline group in 2026, aimed at expanding low-fare travel accessibility in Mexico and internationally, which is expected to significantly enhance the market competitiveness of both airlines.
- Economies of Scale: The new group will realize economies of scale through lowered fleet ownership costs and improved access to capital, thereby strengthening its financial profile and supporting sustainable growth while reducing operational costs.
- Passenger Choice Preservation: Post-merger, Volaris and Viva will continue to operate independently, retaining existing routes and brands, ensuring that passenger choices remain intact while enhancing the convenience of point-to-point travel.
- Community and Economic Development: The establishment of the new airline group is expected to create between 55 and 60 direct jobs per new service aircraft, while also driving economic development and tourism growth across Mexico through increased flights and new operational bases.
See More
Volaris and Viva Merge to Enhance Low-Fare Air Travel in Mexico
- Merger Agreement: Volaris and Viva have entered into a merger agreement aimed at expanding low-fare air travel through a newly established holding company, which is expected to enhance the market competitiveness and financial profiles of both airlines.
- Brand Independence Maintained: Post-merger, Volaris and Viva will retain their individual brands and operations, ensuring passenger choice remains unchanged while expanding routes and services to enhance customer loyalty.
- Economies of Scale: The new airline group will achieve economies of scale, reducing fleet ownership costs and improving access to capital, enabling both airlines to offer more competitive low fares to a broader customer base.
- Job Creation and Economic Development: The merger is expected to create 55 to 60 direct jobs per new aircraft service added, driving economic growth across Mexico and revitalizing tourism and related industries.
See More
Volaris Accomplishes EASA-Mandated Inspections Without Interrupting Services
Successful Compliance: Volaris has completed all inspections and repairs required by the European Union Aviation Safety Agency (EASA) related to a flight-control software issue affecting A320-family aircraft.
Operational Efficiency: The airline managed to implement the necessary updates without canceling any flights, resulting in only minimal delays for passengers.
Financial Impact: Volaris anticipates no significant financial repercussions from the compliance process due to the efficient handling of the situation.
Commitment to Safety: The swift response underscores Volaris's operational resilience and dedication to maintaining passenger confidence in their services.
See More
Volaris Completes EASA Directive Inspections, Ensures Flight Schedule Integrity
- Inspection Completion: Volaris successfully completed all inspections and repairs required under the EASA airworthiness directive affecting approximately 6,000 A320-family aircraft, ensuring flight safety and reliability.
- Flight Schedule Integrity: Throughout the process, Volaris experienced zero flight cancellations and only minor delays, ensuring that passenger travel experiences remained largely unaffected, showcasing the company's operational excellence.
- Financial Impact: The incident is not expected to have any material financial impact, further solidifying Volaris's competitive position in the ultra-low-cost airline market.
- Safety Commitment: Volaris reaffirmed its commitment to operational excellence and safety leadership, highlighting its ability to swiftly respond to manufacturer and regulatory mandates while prioritizing customer experience.
See More
