Viva Revenue Drops 15.5% in 1H25 Amid Peso Slide

Viva reported a 15.5% decline in total revenue for the first half of 2025, totaling US$1.04 billion, down from US$1.23 billion during the same period in 2024.

CEO Juan Carlos Zuazua attributed the drop to more cautious consumer behavior and a 13.6% depreciation of the Mexican peso. “We focused on variables under our control, such as disciplined capacity management and reliable operations,” he said.

In the second quarter alone, revenue fell 10.3% year over year to US$549 million. The airline’s load factor reached 85.8%, while revenue per available seat mile (TRASM) stood at US$8.75 cents. Cost per available seat mile (CASM) decreased 9.9% to US$8.21 cents, driven by a 14.1% drop in fuel CASM and a 7.9% decline in CASM excluding fuel.

Viva maintained an EBITDAR margin of 32.8% and a net margin of 1.4%. The airline’s net leverage ratio was 1.9x, and liquidity stood at 28% of trailing 12-month revenue. “Our financial position gives us flexibility in a challenging environment,” Zuazua added.

The airline added 12 aircraft year over year, including five A320ceo, three A320neo, and four A321neo, ending the quarter with an average fleet age of 7.1 years. However, 26.4 A320neo-family aircraft were grounded due to ongoing Pratt & Whitney engine inspections.

To mitigate the impact, Viva extended leases, received new deliveries, and sought additional short-term capacity. Zuazua said the airline expects stronger seasonal demand in the second half of the year and will remain focused on profitability and operational reliability.