What Happened to Viva Aerobus?

Viva Aerobus, officially Aeroenlaces Nacionales, S.A. de C.V., trading as Viva (formerly Viva Aerobus), was established in 2006 as a joint venture between Grupo IAMSA, a major Mexican bus transportation provider, and Irelandia Aviation, the investment vehicle of the Ryanair founders. The airline commenced operations on November 30, 2006, with its primary hub at Monterrey International Airport, focusing on providing affordable domestic flights within Mexico with a fleet of Boeing 737-300 aircraft. Over the years, it transitioned to an all-Airbus fleet, becoming known for its ultra-low-cost model and unbundled service offerings.

A significant turning point occurred in 2016 when Grupo IAMSA acquired Irelandia Aviation's 49% stake, making Viva Aerobus 100% Mexican-owned. The airline has consistently pursued aggressive expansion, particularly in the domestic market and to the United States. In 2020, Viva Aerobus announced the launch of its cargo subsidiary, Viva Cargo. By November 2020, it became the first carrier in North America to resume 100% of its operational capacity after the COVID-19 pandemic, and by March 2021, it surpassed its pre-pandemic passenger traffic levels.

Recent years have seen continued network growth and strategic partnerships. In December 2021, Viva Aerobus partnered with Allegiant Air to form an alliance aimed at expanding low-budget services between the United States and Mexico, pending regulatory approval. The airline has also focused on sustainability, aiming to reduce CO2 emissions per seat per kilometer by over 15% by 2025 and becoming the first Mexican airline to separate waste for recycling on board. In April 2023, Viva Aerobus signed a purchase agreement with Neste for one million liters of Sustainable Aviation Fuel (SAF) to power flights from Los Angeles to Guadalajara, Mexico City, and Monterrey.

In 2025, Viva Aerobus significantly expanded its international connectivity from Mexico City's Felipe Ángeles International Airport (AIFA), announcing seven new routes to US cities in April 2025, including Los Angeles, Chicago, Dallas-Fort Worth, Denver, Houston, Miami, and Orlando. Further expansion from AIFA in August 2025 included new routes to Austin and New York City, with the latter resuming permanently in June 2026 to coincide with the FIFA World Cup. The airline transported nearly 30 million passengers in 2025, marking its highest annual traffic volume and solidifying its position as the leading Mexican airline in the domestic market.

However, 2025 and early 2026 presented financial challenges. Viva Aerobus reported a 7.3% decline in revenue for 2025, reaching US$2.3 billion, and a significant 61.9% drop in operating profit to US$185 million. The first quarter of 2026 saw a net loss of $74 million, wider than the $42 million loss in Q1 2025, primarily due to increased jet fuel prices, a strengthening Mexican peso against the dollar, and operational disruptions related to Pratt & Whitney GTF engine issues. In response, the airline has implemented stricter cost controls and adjusted capacity on less profitable routes.

A major development in December 2025 was the announcement of an agreement between Grupo Viva Aerobus and Volaris to create a new Mexican airline group through a merger of equals. This transaction, which aims to expand low-fare travel and connectivity, is subject to regulatory and shareholder approvals and is expected to close in 2026. As of May 2026, the merger is still under regulatory review, and both airlines continue to operate as separate entities. Viva Aerobus maintains a modern fleet, with an average age of 5.1 years, and continues to invest in fleet renewal and technology.