Volaris and Viva announce agreement to form new ultra-low-cost airline group

Volaris (NYSE:VLRS) and Viva have reached an agreement to form a new Mexican airline group under a holding company, aimed at expanding ultra-low-cost travel and improving connectivity in the region.

The deal will see both carriers maintain their separate brands and independent operating certificates, while their holding companies will merge in a transaction structured as a merger of equals.

Under the terms of the deal, each shareholder group will own 50% of the new holding company on a fully diluted basis.

The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in 2026.

Following the completion of the merger, the holding company will continue to be listed on both the Bolsa Mexicana de Valores (BMV) and the New York Stock Exchange (NYSE).

This strategic move aims to further enhance the competitive positioning of both Volaris and Viva in Mexico’s growing low-cost travel market, positioning the combined group for future expansion.