April 21st, 2026

The call presents a balanced picture: strong commercial execution, notable revenue and unit-revenue gains, record liquidity and improved leverage, and operational recognition are meaningful positives. However, material near-term headwinds from elevated fuel prices, currency appreciation, and temporary regional demand disruptions will compress margins in Q2 and introduce uncertainty for the rest of the year. Management has clear mitigation plans (fuel recapture, capacity discipline, cost controls) and a defined path to recover fuel costs over the year, but the near-term outlook remains vulnerable to fuel volatility.

Company Guidance

The company guided that second-quarter capacity should be up roughly 1.5%–2.5% year‑over‑year with total revenue growth of about 12.5%–15.5% and adjusted EBITDA margin of 17%–20% (operating margin 4%–7%), assuming jet fuel near $3.80–$4.20/gal (mid ≈ $4), and expects to recapture ≈50% of incremental fuel costs in Q2 (rising to ~70% in Q3 and ~100% in Q4); management noted recent capacity actions removed ~0.5 percentage points, bookings moved from ~40% mid‑March to ~60% today (average ATL ~35 days), and for the full year they see growth nearer 2%–3% versus prior 3%–5% guidance. By way of context, Q1 results that underpin the guidance included total revenue of ~$1.3–$1.34 billion (+13%/+13.3% YoY), PRASM +15% YoY, operating income $142M (11% margin), adjusted EBITDA €36M (25% margin, +5% YoY) despite operating expenses +16% YoY and a 14% stronger peso; liquidity exceeded $1.2B (≈23% of LTM revenue), net operating cash flow >$200M, adjusted net debt/EBITDA ~1.7x, fuel was ~21% of 2025 revenues, fuel burn per ASM improved 1.4% (~$5M savings), and fleet plans target ~170 aircraft by year‑end (two 787s and three 737 MAX deliveries, one NG redelivery planned).