Two of Mexico’s largest airlines, Viva and Volaris, have agreed to merge, officials with both companies confirmed on Thursday.
The low-cost carriers will come together under a new, as yet unnamed airline group. Through economies of scale, the deal is expected to lower aircraft ownership costs while also helping drive down ticket prices for customers, executives said.
The airlines plan to retain their separate operations, operating certificates, and brand identities.
“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,” Volaris President and CEO Enrique Beltranena said in a statement.
If completed, the merger of Viva and Volaris could radically reshape the Mexican airline industry. The carriers are among the largest in Mexico by passenger volume, and have more extensive domestic networks than flag carrier Aeroméxico.
Both Viva and Volaris fly primarily within Mexico, though they also offer service to the U.S. and Central and South America.
In a message to investors, airline leaders said the planned linkup will not only lower costs but also improve institutional resilience to supply chain disruptions and product quality issues at original equipment manufacturers. Uniting Viva and Volaris, they said, will facilitate fleet optimization and ultimately strengthen operations and returns.
The merger is expected to close in 2026. It remains subject to regulatory approvals.
Shares of the new joint holding company will be listed in Mexico and on the New York Stock Exchange.
