In a significant move set to reshape the Mexican aviation landscape, two of the country's leading budget carriers, Viva and Volaris, announced on Thursday, 19th December 2025, that they have agreed to merge. The proposed union is poised to create one of Mexico's largest domestic airline groups, pending regulatory approval expected in 2026.
A New Giant in Budget Air Travel
The airlines revealed that the merger plan is designed to significantly expand access to low-cost air travel for passengers across Mexico. In a joint statement, both companies clarified that they will continue to operate under their existing, well-known brands and maintain their separate operations even after the merger is finalized.
Enrique Beltranena, the President and CEO of Volaris, expressed optimism about the future, stating, "We expect the formation of the new airline group will allow us to realize significant growth opportunities for air travel in Mexico." This strategic consolidation aims to leverage the combined strengths of both carriers to capture a larger share of the growing market for affordable flights.
Regulatory Hurdles and Industry Context
The deal, however, is not yet a done deal. It remains subject to approval by Mexican regulatory authorities. Furthermore, the merger is likely to face scrutiny and potential opposition from the budget airlines' main competitor, the full-service carrier Aeromexico, which could raise antitrust concerns.
This potential merger emerges during a period of notable instability within the Mexican aviation sector. In a related development from October, the US Department of Transportation cancelled plans for over 13 routes to the United States operated by Mexican airlines. Washington took this action after accusing Mexico of having "illegally cancelled and frozen US carrier flights for three years without consequences."
Political Reactions and Future Implications
Mexican President Claudia Sheinbaum initially pushed back against the US decision. However, media reports from November indicated that the country subsequently agreed to allocate more flight slots to US carriers at Mexico City's main airport, a move seen as a step towards resolving the bilateral dispute.
The merger between Viva and Volaris represents a strategic consolidation aimed at strengthening their position in a challenging market. If approved, the combined entity would command a formidable presence, potentially offering more routes and competitive fares. This development will be closely watched by regulators, competitors, and millions of passengers who rely on affordable air travel within Mexico and to international destinations.
