Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS): Business Model Canvas [Dec-2025 Updated]

You're looking to dissect how Controladora Vuela Compañía de Aviación, S.A.B. de C.V. consistently keeps fares low while growing-it's a masterclass in the ultra-low-cost model. Honestly, the numbers from Q2 2025 tell the story: with an average base fare of just $38 but nearly 58.9% of revenue coming from unbundled extras like baggage and seat selection, you see the whole strategy laid bare. This model, built on a young, fuel-efficient Airbus fleet and a laser focus on high utilization, is what lets them target that massive bus-to-air conversion market. Dive into the full Business Model Canvas below to see exactly how their Key Partnerships, Resources, and Revenue Streams align to make this operation tick.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) flying efficiently and expanding its ultra-low-cost model. These aren't just vendors; they are essential enablers of your growth strategy.

Airbus: Primary supplier for the young, fuel-efficient A320neo family fleet.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) continues its commitment to an all-NEO fleet strategy, which is central to maintaining a low unit cost. As of November 2025, the total fleet size stood at 153 aircraft. The airline became an Airbus customer in 2006 and has ordered a total of 206 A320 Family aircraft over that time. The focus on the A320neo Family is clear; as of July 2025, 63% of the total fleet consisted of NEO models. This partnership is about securing the newest, most fuel-efficient airframes to drive down operating expenses.

CDB Aviation: Leasing partner for financing and fleet expansion, including five A320neo family aircraft (Nov 2025).

Financing the fleet growth relies heavily on leasing partners like CDB Aviation. On November 3, 2025, CDB Aviation announced the completion of a mandate to deliver five Airbus A320neo Family aircraft-specifically two A320neo and three A321neo-to Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS). This latest delivery brought the total number of CDB Aviation aircraft assets on lease to the Mexican carrier to 16. This is a deepening relationship, as a prior agreement in April 2022 had already brought the total on lease to thirteen aircraft.

Here's a quick look at the recent fleet financing activity with this partner:

This is how you scale without owning the balance sheet assets outright.

Pratt & Whitney: Engine manufacturer for the Airbus fleet, crucial for maintenance and operational continuity.

Pratt & Whitney engines power the young fleet, a critical component given the operational challenges faced in 2024 due to accelerated Geared Turbofan (GTF) engine preventive inspections. The commitment to the A320neo Family, which is powered by these engines, remains a strategic focus. The airline's total backlog of 143 A320neo Family aircraft, as disclosed in June 2023, was explicitly stated to be powered by Pratt & Whitney engines, underscoring the long-term nature of this technical dependency.

SabreMosaic™ Travel Marketplace: Distribution partner, adding over 220 low-cost routes to agency content (Oct 2025).

To broaden international reach beyond direct sales, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) entered a new multi-year agreement with Sabre Corporation on October 29, 2025. This marked the airline's debut in the global distribution system (GDS) channel. The integration makes the airline's content available through SabreMosaic™ Travel Marketplace, adding more than 220 low-cost routes to the marketplace. SabreMosaic, which features over 150 airlines, now offers agencies seamless access to Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS)'s network across Mexico, the US, Central America, and South America.

The scale of the network accessible via this partnership is significant:

• More than 220 low-cost routes added to agency content.
• The overall route map connects 44 cities in Mexico and 30 cities in the United States, Central, and South America.
• This connectivity covers a total of 74 cities across the Americas.

Ground Handling and Airport Operators: Local service providers across 74 cities in the Americas.

Operational continuity depends on a vast network of local partners for ground handling and airport access across the entire route map. As confirmed by the October 2025 traffic report, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) operates routes connecting 44 cities in Mexico and 30 cities in the United States, Central, and South America. These local relationships are the backbone for managing the 2.6 million passengers transported in October 2025 alone.

Finance: draft 13-week cash view by Friday.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) - Canvas Business Model: Key Activities

Ultra-Low-Cost Operations: Maintaining a Cost per Available Seat Mile (CASM) ex fuel of around $5.69 cents (Q2 2025). Controladora Vuela Compañía de Aviación, S.A.B. de C.V. reported its CASM ex fuel for the second quarter of 2025 at $0.0569, representing a 7% increase year-over-year. For the third quarter of 2025, this metric improved sequentially to 5.48 cents, up just 2% compared to the prior year period. The guidance for the fourth quarter of 2025 anticipates a CASM ex-fuel of approximately $0.0575.

Ancillary Revenue Generation: Continuously optimizing unbundled services and dynamic pricing. The total ancillary revenue per passenger in the second quarter of 2025 reached $54, a 1.9% increase from the prior year, and these revenues accounted for 58.9% of total operating revenues. By the third quarter of 2025, the average ancillary revenue per passenger increased to $56, maintaining a consistent performance above the $50 threshold for eight consecutive quarters. Ancillaries now consistently account for over half of total revenue.

Point-to-Point Route Management: Operating over 222 routes with high-frequency, short-haul flights. Since March 2006, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. has expanded its network to more than 225 routes as of the third quarter of 2025. The network connects 44 cities in Mexico and 30 cities across the United States, Central, and South America. The Guadalajara market alone connects travelers to 26 domestic and 22 international destinations.

Fleet and Maintenance Management: Executing required EASA-mandated A320 inspections and repairs (Nov 2025). Controladora Vuela Compañía de Aviación, S.A.B. de C.V. successfully completed all inspections and repairs required under the European Union Aviation Safety Agency (EASA) directive on November 29, 2025. This critical work was executed with zero flight cancellations and only minimal delays. The fleet at the end of the third quarter of 2025 totaled 152 aircraft.

Digital Sales and Distribution: Driving direct sales through the company website and mobile app. The company is enhancing customer experience and operational efficiency through digital initiatives. Key activities include the introduction of the in-house loyalty program, Altitude, and new product offerings like Premium Plus seating. Furthermore, new customer service initiatives, such as the deployment of AI agents, are being launched to support digital channels.

Here's a quick look at the operational metrics supporting these activities:

The focus on cost control and ancillary revenue is evident in the following breakdown of key performance indicators:

• Total Ancillary Revenue as a percentage of Total Operating Revenues in Q2 2025: 58.9%.
• Ancillary Revenue per Passenger increase in Q3 2025: 4.7% year-over-year.
• Total Fleet composition: 64% New Engine Option (NEO) models as of Q3 2025.
• EASA-mandated A320 inspections completion date: November 29, 2025.
• Flight cancellations due to maintenance: Zero.

To be fair, the digital push is also about driving direct sales, which helps manage distribution costs. The company is also managing its fleet carefully, noting that 15 of the 152 aircraft were added in the first nine months of 2025, with three added in the third quarter alone.

Finance: draft 13-week cash view by Friday.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) - Canvas Business Model: Key Resources

You're looking at the core assets Controladora Vuela Compañía de Aviación, S.A.B. de C.V. relies on to run its ultra-low-cost model. These aren't just line items; they're the engines of the operation.

Young Airbus A320neo Family Fleet

The fleet is central to keeping costs down. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. focuses on a modern, standardized fleet for better maintenance and fuel burn. As of November 2025 traffic results, the fleet stood at 154 aircraft. That focus on efficiency shows up in the fuel line, too; the average economic fuel cost in the third quarter of 2025 was $2.61 per gallon.

Here's a quick look at fleet size progression based on recent reports:

Strong Liquidity Position

Having cash on hand gives Controladora Vuela Compañía de Aviación, S.A.B. de C.V. the flexibility to manage shocks, like those engine groundings we saw earlier in the year. The balance sheet strength is key for an airline. At the close of the third quarter of 2025, the company reported a solid liquidity buffer.

The total liquidity position was:

• Cash, cash equivalents, and short-term investments: $794 million (Q3 2025).
• This represented 26.5% of the last twelve months' total operating revenue.

Extensive Route Network

The network is the physical manifestation of their market reach, connecting key demand centers. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. targets VFR (Visiting Friends and Relatives) and cost-conscious travelers across borders. They operate around 500 daily flight segments.

The network footprint as of late 2025 covers:

• Cities in Mexico: 44.
• Cities in the US, Central, and South America: 30.

The operational scope is wide, but the point-to-point model keeps the network lean.

Proprietary IT Systems

The digital backbone drives revenue management, which is critical for an ultra-low-cost carrier. These systems enable dynamic pricing and the effective sale of extras. The success of this technology is visible in the ancillary revenue performance from the second quarter of 2025.

The impact of these systems in Q2 2025 included:

Highly Utilized Crew and Aircraft

Maximizing the use of every asset-crew and plane-is how Controladora Vuela Compañía de Aviación, S.A.B. de C.V. keeps its unit costs low. High utilization means more revenue generation per hour of fixed cost. The load factor is the clearest measure of this efficiency.

Utilization metrics show strong performance:

• Load Factor for Q3 2025: 84.4%.
• Load Factor for November 2025: 85%.

Finance: draft 13-week cash view by Friday.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) - Canvas Business Model: Value Propositions

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) centers its value on making air travel accessible, which is key for stimulating demand from the bus-to-air conversion market.

Lowest Base Fares: Making air travel accessible to the bus-to-air conversion market

The core appeal is the low entry price point. For the second quarter of 2025, the average base fare per passenger was just $38. This low fare is deliberately visible on the website to stimulate demand, allowing customers to secure the lowest possible ticket price well in advance. This strategy is what helps Controladora Vuela Compañía de Aviación, S.A.B. de C.V. target cost-conscious leisure and VFR (Visiting Friends and Relatives) travelers.

Unbundled Service Model: Allowing customers to customize and pay only for services they use

The ultra-low-cost carrier model means the base fare is just the starting point. Customers build their journey by selecting only the extras they need. This customization is reflected in the revenue mix from the second quarter of 2025, where ancillary revenues were a significant component. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. successfully generated an average of $54 per passenger in total ancillary revenue during that period, which accounted for 58.9% of total operating revenues. Furthermore, a portion of the customer base actively manages their add-ons, with between 25% and 30% of customers choosing to pay airport fees before check-in rather than at the time of purchase.

The breakdown of revenue per passenger in Q2 2025 clearly shows this structure:

Extensive VFR Network: Connecting friends and relatives across Mexico and the US/Central America

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. positions itself as the airline of choice for the VFR base, which management noted is the most resilient customer segment. The network is built to facilitate these essential connections. As of late 2025, the airline offers around 500 daily flight segments. This extensive reach connects 44 cities within Mexico and 30 cities across the United States, Central, and South America. Management has stated that if demand trends persist, the strategy favors broadening this footprint with new routes over adding depth to existing ones, enhancing network diversification.

The network scale as of late 2025 includes:

• Over 222 total routes.
• Service to 44 cities in Mexico.
• Service to 30 cities in the US/Central/South America.
• Around 500 daily flight segments.

Operational Reliability: Maintaining a consolidated load factor of 85.3% (Nov 2025)

High utilization of assets is critical for the low-cost model to work. For November 2025, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. reported a consolidated load factor of 85.3%, having transported 2.7 million passengers during that month. This metric shows the efficiency in filling available seats, even with a slight year-over-year decrease. International Revenue Passenger Miles (RPMs) showed strong growth at 9.2% in November 2025, while domestic RPMs grew by 0.6%.

Young, Modern Fleet: Offering a more comfortable and fuel-efficient travel experience

The fleet composition supports both cost efficiency and passenger comfort expectations. As of the second quarter of 2025, the fleet totaled 149 aircraft, with the company adding four A320neos and one A321neo during that quarter. By November 2025, the fleet had grown to 154 aircraft. A key value driver is modernity; at the end of Q2 2025, the average age of the fleet was only 6.5 years. Moreover, 63% of the total fleet consisted of New Engine Option (NEO) models, which directly translate to better fuel efficiency, a major component of operating costs.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) - Canvas Business Model: Customer Relationships

You're looking at how Controladora Vuela Compañía de Aviación, S.A.B. de C.V. keeps its customers engaged while keeping costs down. It's all about making the interaction fast and digital, which is key for an ultra-low-cost carrier.

Automated Self-Service

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. leans heavily on customers doing things themselves online. This means booking, changing flights, and checking in happens mostly through their digital storefronts. This approach helps keep the cost structure lean, which is the whole point of their model. For instance, ancillary revenue per passenger in Q3 2025 was $56, reflecting successful upselling through these digital touchpoints. This self-service focus is critical when you're moving millions of people; in November 2025 alone, they transported 2.7 million passengers.

The primary digital interfaces for this are:

• Volaris official website (www.volaris.com).
• Volaris official mobile application.
• Airport ticket sales modules.

VClub Loyalty Program

The VClub loyalty program, which also incorporates the altitude benefits, is structured to lock in repeat business through tiered annual subscriptions. This isn't just about miles; it's about guaranteeing access to the lowest published fares. You can choose the plan that fits your travel style, which is a smart way to segment the relationship.

Here are the starting annual costs for the membership tiers as of late 2025:

The goal is to make the membership fee an easy decision when compared to the guaranteed savings on every flight.

Transactional Focus

The relationship is fundamentally transactional, prioritizing efficiency over deep, personalized hand-holding for every customer interaction. This is evident in the pricing structure. In Q3 2025, the average base fare per passenger was $44, which was a 17.8% decrease year-over-year, showing the commitment to low base pricing. The total operating revenue per passenger for that quarter settled at $100. The company manages its customer service to handle high volume, low-touch needs effectively. They operate a fleet of 153 aircraft, connecting 44 cities in Mexico and 30 cities across the US, Central, and South America, all managed with this cost-conscious approach.

Social Media and Digital Support

When issues arise, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. directs customers toward high-volume digital channels. They recently launched new customer service initiatives, including the use of AI agents, to help manage the flow of inquiries efficiently following their Q3 2025 report. For international flights to and from the United States, they commit to providing prompt information on known delays or cancellations via the customer's registered telephone number, including through WhatsApp, and by email.

Key operational and customer metrics from recent reports include:

• Q3 2025 Net Income: $6 million.
• Q3 2025 Total Operating Revenues: $784 million.
• November 2025 Passengers Transported: 2.7 million.
• Fleet Size (Late 2025): 153 aircraft.
• Ancillary Revenue per Passenger (Q3 2025): $56.

Finance: draft 13-week cash view by Friday.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) - Canvas Business Model: Channels

You're looking at how Controladora Vuela Compañía de Aviación, S.A.B. de C.V. gets its product-seats on ultra-low-cost flights-to the customer in 2025. The scale of operations is significant; for instance, in November 2025, the company transported 2.7 million passengers. This volume flows through several distinct avenues.

Company Website and Mobile App: Primary and most cost-effective direct sales channel.

This is where Controladora Vuela Compañía de Aviación, S.A.B. de C.V. pushes for the highest margin sales. The focus here is on driving direct bookings to avoid third-party commissions. The company's operational scale supports this, with total operating revenues reaching $784 million in the third quarter of 2025 alone. The digital channels are key to upselling ancillary products, which are vital given the average base fare per passenger stood at $44 in Q3 2025.

• Digital sales are essential for ancillary revenue capture.
• The platform supports the ultra-low-cost model's efficiency.

Global Distribution Systems (GDS): Used for reaching corporate and travel agency customers (e.g., SabreMosaic™).

While Controladora Vuela Compañía de Aviación, S.A.B. de C.V. is an ultra-low-cost carrier, GDS access is necessary for certain segments, including corporate travel programs. The use is selective, balancing reach against the associated distribution costs. The company's international segment, which saw international RPMs rise by 9.2% in November 2025, likely utilizes GDS to a greater extent for cross-border bookings. The company's liquidity position, with cash and short-term investments totaling $794 million at the end of Q3 2025, provides a buffer to manage these channel costs.

Call Centers and Airport Ticket Offices: Used for complex bookings and last-minute purchases.

These channels handle transactions that require immediate human interaction or are made at the point of departure. Airport ticket offices serve last-minute demand, which is important when the consolidated load factor was 85.3% in November 2025. The cost structure of these channels is higher, but they support customer service for the 2.7 million passengers moved in November 2025.

Third-Party Online Travel Agencies (OTAs): Selective use to expand reach in international markets.

OTAs provide incremental reach, particularly in international markets where brand awareness might be lower or where specific market segments prefer the OTA interface. This is a tactical lever. For context, international RPMs grew by 9.2% in November 2025, suggesting a need for broad market access. The company's Q1 2025 total operating revenues were $678 million. Any OTA contribution must be weighed against the pressure on unit revenues, as TRASM (Total Revenue per Available Seat Mile) declined 7.7% in Q3 2025.

Here's a look at the financial scale these channels supported in the third quarter of 2025:

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) - Canvas Business Model: Customer Segments

You're looking at the core customer groups for Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) as we close out 2025. The ultra-low-cost carrier strategy is all about volume, and these segments are where the growth is coming from.

Visiting Friends and Relatives (VFR): The core segment for cross-border and domestic travel

This group remains foundational, especially for the international routes connecting Mexico with the United States, Central, and South America. We saw international Revenue Passenger Miles (RPMs) expand by a strong 9.2% in November 2025, showing continued momentum in this core cross-border traffic. To be fair, earlier in the year, in January 2025, there was some noted softness in VFR traffic to the U.S. due to geopolitical uncertainty, which required tactical fare adjustments. Still, the overall trend shows resilience. The company transported 2.7 million passengers in November 2025, part of a year-to-date total of 13.1 million passengers carried from January through July 2025, a 6.8% increase over the same period in 2024.

Cost-Conscious Leisure Travelers: Individuals and families prioritizing the lowest possible fare

This segment is the lifeblood of the ultra-low-cost model, driven by the lowest possible base fares. In the third quarter of 2025, the average base fare per passenger stood at $44, which was a significant 17.8% decrease year-over-year. This aggressive pricing is balanced by ancillary revenue, which is key to profitability; total ancillary revenue per passenger actually increased by 4.7% in Q3 2025. The total operating revenue per passenger for that quarter was $100. This shows you how critical the non-ticket revenue is when the base fare is being aggressively managed to capture the most price-sensitive travelers.

Bus-to-Air Conversion Market: First-time flyers shifting from long-haul bus travel

This is the long-term structural opportunity Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) was built to capture. The company has historically cited a massive market where air travel is positioned as both quicker and cheaper than long-haul bus journeys. While a 2021 estimate suggested about 700 million annual bus trips of six or more hours were in play, the opportunity for this segment is framed by the company as a $1.5 billion market potential. A major milestone was reached when the airline converted over 10 million bus travelers into first-time air travelers by late 2022, setting the stage for continued conversion.

Small to Medium-Sized Business Travelers: Price-sensitive business users on short-haul routes

These travelers need reliability and low cost for short-haul domestic and near-border business trips. The domestic network shows solid demand, with domestic RPMs in Mexico seeing a slight upturn of 0.6% in November 2025. The domestic load factor reached a high of 88% in the second quarter of 2025, indicating strong utilization on these routes. To better serve this group, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) reaffirmed its focus in Q3 2025 on new product offerings, including a new loyalty program specifically for business travelers.

Here's a quick look at the operational metrics that touch these segments:

The airline's overall strategy involves maintaining a lean cost structure, as evidenced by the Q3 2025 CASM ex fuel being $0.0548 cents, up only 2% year-over-year despite inflationary pressures. This cost discipline directly supports the low base fares that attract the leisure and bus-conversion segments.

• Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) fleet size at the end of Q2 2025 stood at 149 aircraft.
• Total liquidity position at the end of Q3 2025 was $794 million.
• The company operates approximately 550 daily flights connecting 44 cities in Mexico and 23 in the United States as of late 2025.

Finance: draft 13-week cash view by Friday.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep Controladora Vuela Compañía de Aviación, S.A.B. de C.V. flying, which is crucial for an ultra-low-cost carrier (ULCC) like this one. Their entire model hinges on keeping these costs, especially the variable ones, as low as possible relative to revenue, so every cent matters.

Fuel is the big variable hit, naturally. For the second quarter of 2025, the average economic fuel cost was $2.46 per gallon. To give you a slightly later snapshot, the average economic fuel cost in the third quarter of 2025 ticked up a bit to $2.61 per gallon. This is why their fleet modernization, with 63% NEO (New Engine Option) models in their 149-aircraft fleet, is so important; those newer planes directly fight this major expense.

Aircraft leasing and maintenance are significant fixed and variable buckets. You saw some specific pressures here in Q2 2025, with higher costs reported in maintenance and variable lease expenses tied to scheduled aircraft returns. The total lease liabilities were reported at $3,057 million at the end of that quarter, showing the scale of the asset base commitment. On the flip side, Q1 2025 saw a benefit of $54 million recognized from the re-measurement of redelivery accruals on some lease extensions, which is a good example of how accounting adjustments can temporarily shift this line item.

Personnel costs cover the people powering the operation. As of a late 2025 profile, the company has 6,901 total employees. Keeping salaries and benefits competitive while maintaining a lean structure is key to the ULCC proposition. The operational scale is supported by running around 500 average daily flight segments connecting 44 cities in Mexico and 30 cities across the United States, Central, and South America.

Airport fees and navigation services scale directly with flight volume. Operating those ~500 daily flights means consistent, non-negotiable charges for landing, gate usage, and air traffic control services across their network. The distribution cost structure is where Controladora Vuela Compañía de Aviación, S.A.B. de C.V. really shows its discipline. Their focus on direct sales keeps third-party distribution costs low, which is reinforced by ancillary revenue being a massive component of their top line-it exceeded 50% of total operating revenues in Q1 2025.

Here's a quick look at some key operational cost and revenue metrics for context:

The cost structure is constantly managed against revenue performance. For instance, CASM ex-fuel increased 7% year-over-year in Q2 2025, showing that even with fuel down, other operational costs were rising, which is a near-term risk you need to watch.

You should keep an eye on these specific cost drivers:

• Fuel Price Volatility: Direct impact on CASM.
• Aircraft Redelivery Accruals: Variable impact from fleet changes.
• CASM ex-Fuel Inflation: The 7% rise in Q2 2025 needs to be contained.
• Foreign Exchange Risk: Peso depreciation pressures USD-denominated costs.

Finance: draft 13-week cash view by Friday.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) - Canvas Business Model: Revenue Streams

You're looking at the core money-makers for Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) as of late 2025. The business model leans heavily on getting you in the door with a low price, then upselling you on everything else.

Ancillary Revenue: This is the dominant stream, accounting for approximately 58.9% of total operating revenues as reported in the second quarter of 2025. To be fair, by the third quarter of 2025, this figure had settled slightly lower at 56.4% of total operating revenues.

Base Ticket Fares: The average base fare per passenger was quite low, sitting at $38 during the second quarter of 2025. That low entry price is key to their ultra-low-cost model.

Ancillary Fees: These fees are where the real margin comes from. The total ancillary revenue per passenger reached approximately $54 in the second quarter of 2025. By the third quarter of 2025, this number had ticked up to $56 per passenger. These fees cover a range of services you might need.

• Baggage fees
• Seat selection charges
• Priority boarding revenue
• Change fees

Cargo and Mail Services: Controladora Vuela Compañía de Aviación, S.A.B. de C.V., through its subsidiary, provides air transportation services for passengers, cargo, and mail in Mexico and internationally. The company operates approximately 550 to 590 daily flights connecting cities across Mexico, the United States, Central America, and South America, utilizing this existing capacity for freight. Specific revenue amounts for this stream weren't broken out in the latest reports I have access to.

VClub Membership Fees: This is the recurring revenue component, tied to the frequent-flyer subscription program. Management noted that nearly 30% of their bookings include at least one membership product as of the second quarter of 2025, showing strong customer engagement with their loyalty offering.

Here's a quick look at those key Q2/Q3 2025 revenue-related figures you asked about:

The total operating revenue for the second quarter of 2025 was $693 million, which was a 5% decrease year-over-year. By the third quarter of 2025, total operating revenues were $784 million. Finance: review the Q3 2025 cargo/mail revenue contribution against the Q2 2025 total operating revenue to estimate its scale by next week.