Viva-Volaris merger marks potentially transformative moment for Mexico's aviation industry
CAPA - Centre for Aviation, in a report entitled 'Viva-Volaris merger puts Mexico's LCC-driven aviation model at a crossroads', stated (13-Jan-2026) Viva and Volaris' proposed merger marks a potentially transformative moment for Mexico's aviation market, which has been shaped decisively by low cost carriers over the past two decades. The two airlines have played a central role in expanding access to air travel, helping grow Mexico's passenger numbers from fewer than 50 million in 2009 to nearly 120 million in 2024. Their tie up aims to create scale in an increasingly constrained global aviation environment, with both carriers arguing that a combined fleet of more than 250 A320 Family aircraft would materially reduce aircraft ownership costs, which is the largest expense category for airlines in the region. [more - CAPA Analysis]
Background ✨
Viva and Volaris agreed to form a new airline group via a merger of equals, each holding 50% of the new holding company, which will remain publicly listed and retain both airlines' independent operations, with approval pending from regulators and shareholders and closing expected in 2026. The group planned investments in fleet, technology, operational bases, and connectivity, aiming to enhance scale and lower fleet ownership costs1. President Claudia Sheinbaum welcomed the proposal, highlighting its potential benefits for tourism and competition, but confirmed it would undergo antitrust review2.