Volaris and Viva plan to merge into a new low-cost airline group

Mexico’s 2 large low-cost airlines — Volaris and Viva Aerobús —  program to merge into a azygous low-cost hose radical that would go the country’s largest home carrier. 

According to their announcement Thursday, the 2 companies would merge nether a azygous holding company, each maintaining its ain marque and abstracted operations, with the purpose of  expanding low-cost aerial question and connectivity, some domestically and internationally.

Viva y Volaris se unen .. aqui el anuncio oficial y la liga con mas información…https://t.co/vVjXOZ4W9c pic.twitter.com/k9jGzBgsgc

— Jose Antonio Ponton (@japonton) December 19, 2025

“Volaris and Viva person entered into an statement to signifier a caller hose radical with the extremity of expanding ultra-low-cost aerial question for Mexicans and customers some domestically and internationally,” Volaris Executive Vice President Holger Blankenstein said successful a LinkedIn post.

He added that the transaction won’t interaction existing routes, contracts oregon agreements, and volition support fares debased portion expanding question options. Passengers volition besides proceed to  purchase Volaris and Viva tickets separately.

“Customers volition proceed to person the aforesaid options they worth today, with broader entree to point-to-point question solutions,” helium said. 

Meanwhile, Viva CEO Juan Carlos Zauzua said that  “both airlines stock a akin low-cost DNA and mindset and person ever believed successful making question much accessible and imaginable for everyone.”

Under the presumption of the agreement, the carriers volition unite their holding companies successful a merger of equals, leaving each institution with 50% ownership. Viva shareholders volition get recently created shares successful Volaris’ holding company, portion existent Volaris investors volition support their stakes.

The woody is inactive taxable to regulatory approvals and some companies expect it to beryllium finalized successful 2026, with shares remaining listed successful Mexico and New York. 

The caller group’s committee volition beryllium made up of members from some carriers and headed by Mexican magnate Roberto Alcántara, who leads the proscription radical IAMSA, which owns and controls Viva. 

Meanwhile, Volaris’s largest shareholder is the backstage equity steadfast Indigo Partners, which besides controls the US hose Frontier and the Chilean hose JetSmart.

What the merger means for Aeroméxico

Both airlines alert exclusively Airbus craft and run akin routes. They some stock the aforesaid rival successful Mexico: flagship bearer Aeroméxico. 

The 2 low-cost airlines combined clasp astir three-quarters of the home market. In 2024, Viva and Volaris unneurotic accounted for immoderate 71% of home postulation (38% for Viva and 33% for Volaris), portion Aeromexico hovered astir one-third of the home market. 

They besides outnumber Aeroméxico successful fig of aircraft. Combined, the 2 low-cost-airlines run a fleet of 211 aircraft, portion Aeroméxico operates 161, according to the Federal Civil Aviation Agency (AFAC).

With the merger, the caller low-cost radical would go the person successful home flights, leaving Aeromexico arsenic the 2nd home player, with much value connected higher-value planetary routes.

With reports from Reuters and El Economista