Rival low-cost carriers Volaris and Viva have announced plans to form a new Mexican airline group by combining operations under a holding company structure.
On December 19, 2025, Volaris and Viva declared that, despite the merger, both airlines will still operate independently and maintain their own distinct brands.
The two airlines claim that the new group approach will drive down costs for passengers and strengthen connectivity in Mexico.
According to a press release, employees, passengers, communities, suppliers, and shareholders from both airlines will see significant benefits from the transaction.
It added that the merger will lead to lower fleet ownership costs, improved access to capital and a strengthened financial position.
“We expect the formation of the new airline group will allow us to realize significant growth opportunities for air travel in Mexico, in line with the low fare and point-to-point approach that revolutionized the industry over the last two decades,” said Enrique Beltranena, Volaris’ President and CEO.
He added: “The economies of scale and expanded distribution capacity will allow us to compete even more effectively in domestic and international markets by lowering fleet ownership costs. This way, we will be able to offer ultra-low-cost fares to even more passengers as we pursue sustainable growth, benefit from a more efficient fleet, and lower costs.”
The airlines also highlighted that recent supply chain setbacks and quality concerns with OEMs and engine manufacturers have had disproportionate impacts on the operating costs of ultra-low-cost and smaller carriers.
By combining their companies, Volaris and Viva believe that they will be “more resilient and competitive organizations, capable of thriving in dynamic regional markets while still maintaining their ultra-low-cost DNA to stimulate demand”.
Additionally, the carriers claim that the merger will create more positions, with every aircraft of new service added opening between 55 and 60 more jobs.
“We intend this transaction to enable both Viva and Volaris to provide ultra-low-cost fares and more point-to-point travel to even more cities across Mexico and internationally, benefiting not only passengers, but also local economies and communities,” said Juan Carlos Zuazua, CEO of Viva. “Both airlines, which share a similar low-cost DNA and mindset, have always believed in the importance of making travel more accessible for everyone.”
He added: “Our passengers choose Viva and Volaris for their point to- point networks, seamless customer service, and low fares, so maintaining our ultra-low-cost strategy is essential not only for sustaining growth, but also for deepening passenger loyalty. Together, we look forward to continuing to deliver more flights at low cost for our passengers.”
The transaction is still subject to conditions and regulatory approvals in Mexico and other jurisdictions where Viva and Volaris operate, but is expected to close in 2026.
