The Mexican low-cost carrier is responding to persistent Airbus A320neo-family groundings and rising fuel prices with a leaner fleet strategy.
Mexican low-cost carrier Volaris is reducing its fleet amid debilitating aircraft groundings and the surging cost of jet fuel, deferring Airbus deliveries into next decade to lower lease liabilities.
“Our contractual fleet will decline from 155 aircraft in December 2025 to roughly 137 by year-end of 2027,” chief executive Enrique Beltranena said on 28 April. “However, the productive, revenue-generating fleet [will] increase to approximately 125 aircraft – up from 112 at the end of 2025.
“This transition unlocks meaningful efficiency gains.”
Already this year, Volaris has sold four to-be-delivered Airbus aircraft to a lessor. It has also postponed delivery of seven aircraft due for delivery in 2027 and pushed backed three deliveries expected in 2028. Those aircraft are now expected to arrive in 2030 or later.
The airline estimates the fleet-reduction initiative will reduce total lease liabilities by $360 million and unlock some $50 million in annual savings.
“To that end, most 2027 and 2028 deliveries have been rescheduled, and no incremental aircraft investments will be made until the GTF Advantage engines enter service,” Beltranena says. “Ultimately, the most powerful value-creation lever over the next several years is restoring fleet productivity [and] reducing aircraft ownership costs.”
P&W says forthcoming GTF Advantage engines will feature more-durable components, with new double-walled structures and cooling holes to reduce wear related to high temperatures.
The new powerplants have cleared certification with the Federal Aviation Administration and the European Union Aviation Safety Agency, with deliveries to slowly ramp until P&W is delivering only Advantage turbofans by 2028.
EASING ENGINE BURDEN
The Mexico City-based ultra-low-cost carrier (ULCC) has been working to return more grounded Airbus A320neo-family jets to service, which the airline’s leadership team believes will boost fleet efficiency and help blunt sharp increases in fuel costs.
Volaris is seeing a higher proportion of aircraft powered by Pratt & Whitney geared turbofan (GTF) engines flying and generating revenue, Volaris chief executive Enrique Beltranena said during the company’s 28 April earnings call. That is easing Volaris’ fuel burden because A320neos are significantly more efficient than the previous-generation jets.
“We estimate that for every 10 aircraft shifted from [A320ceos] to [A320neos], we generate roughly $2 million in monthly fuel savings at current price levels,” he says.
Volaris has been among the hardest-hit carriers in North America by P&W’s years-long recall of GTF engines. At the beginning of the year, it had 41 grounded A320neo-family jets, out of a total fleet of 155 aircraft. It closed the first quarter with 32 aircraft on the ground. (The carrier has a compensation agreement with P&W to offset lost aircraft productivity.)
“This represents an important step toward restoring fleet productivity, driving structural improvements in earnings power and long-term performance,” says Jaime Pous.
With more A320neo-family jets returning to service, Volaris expects 70% of its operating fleet to be newer, more fuel-efficient Airbus narrowbodies by year-end.
FULL-YEAR OUTLOOK UNCLEAR
Like several US carriers, Volaris has suspended its full-year investor guidance based on fuel price volatility emanating from the US and Israel’s war in Iran.
Beltranena says Volaris is focused on preserving cash flows by cutting unprofitable flying from its network. The carrier has also raised fares about 10% and ancillary fees about 20%, effectively passing some costs along to consumers.
Demand “remains resilient to these actions across the network”, Beltranena says, adding that the airline will continue to “progressively optimise these actions” based on demand levels in different markets.
“We are seeing a faster than historical ability to recapture fuel through pricing, supported by a more disciplined industry environment,” he says.
The ULCC expects to recapture 20-30% of its additional fuel costs in the second quarter.
The carrier’s capacity adjustments are focused primarily on the domestic Mexican market, with international operations showing a greater ability to absorb higher fuel costs.
For the full year of 2026, Volaris now expects year-on-year capacity growth of about 4%, down from its previous expectation of 7% capacity growth.
Demand for transborder travel to the USA, which has been suppressed since beginning of President Donald Trump’s second term, is showing “continuous, sequential improvement”, Beltranena says.
Volaris reports a loss of $71 million during the seasonally weak first quarter, compared with a $51 million loss in the same period of 2025.
The company’s first-quarter revenue surged year-on-year by 14%, to $770 million.
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