Volaris and Viva Aerobús merge, creating Mexico's largest domestic airline group

December 19, 2025 at 09:32 PM•2 min read

Volaris and Viva Aerobús plan to merge into a single holding company, forming Mexico's largest domestic airline group.

Key Points

1Volaris and Viva Aerobús announced a merger of equals (50/50 ownership) to form a new ultra-low-cost airline group in Mexico.
2The combined group will command approximately 71% of Mexico's domestic passenger market, making it the nation's largest carrier by volume.
3The new entity will operate a combined fleet of 211 Airbus aircraft, maintaining separate brands and operations while awaiting 2026 regulatory finalization.
4The merger is intended to increase low-cost travel options and connectivity both domestically and internationally for Mexican customers.

Volaris and Viva Aerobús, Mexico’s two leading ultra-low-cost carriers (ULCCs), announced plans to merge their holding companies in a 50/50 transaction, creating a new airline group. The objective of the merger is to expand low-cost air travel accessibility both domestically and internationally. While merging under a single parent entity, both airlines will maintain separate branding and operational structures, ensuring existing routes, contracts, and low fares remain unaffected. The deal is structured as a merger of equals, with Viva shareholders receiving newly created shares in the Volaris holding company. The transaction is expected to close in 2026, pending necessary regulatory approvals.

This merger fundamentally reshapes the Mexican aviation landscape. The combined entity will become the undisputed leader in domestic traffic, significantly surpassing flag carrier Aeroméxico. Data from 2024 indicates that Volaris and Viva collectively accounted for approximately 71% of domestic passenger traffic, compared to Aeroméxico’s roughly one-third share. Furthermore, the new group will operate a substantial combined fleet of 211 Airbus aircraft, far exceeding Aeroméxico’s fleet size of 161.

The new airline group’s board will be headed by Mexican magnate Roberto Alcántara, who leads the transportation group IAMSA, the current owner of Viva. Key stakeholders include private equity firm Indigo Partners, a major Volaris investor which also controls Frontier Airlines and JetSmart, ensuring strong ULCC expertise within the new leadership structure.