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Management attributed Q1 resilience to a robust business model that successfully navigated regional demand disruptions and surging fuel prices to meet original guidance.

Performance was driven by a 15% increase in unit revenues, supported by a strong brand appeal to premium passengers who are less sensitive to price fluctuations.

The company's structural advantage lies in its revenue mix, where fuel accounts for only 21% of total revenues, lower than regional peers and ULCCs.

Strategic positioning in international markets, which generate 70% of total revenue, has allowed for more effective fuel recapture compared to the domestic market.

Operational excellence was highlighted by the airline's ranking as the most on-time airline globally for 2026, building on its 2024 and 2025 performance.

Management emphasized that the lack of material additional fleet commitments for the remainder of the year enhances financial flexibility and limits cost pressure.

The second quarter is expected to be the weakest period of the year, reflecting peak pressure from fuel prices before mitigation actions are fully realized.

Management outlined a clear fuel recapture trajectory, targeting 50% recovery in Q2, 70% in Q3, and 100% by Q4 as pricing and network initiatives take full effect.

Capacity growth for the full year has been revised downward to 2% to 3% from the original 3% to 5% range to protect margins and optimize cash flow.

Q2 guidance assumes a jet fuel price range of $3.80 to $4.20 per gallon, with the midpoint at $4.00.

Full-year guidance remains suspended due to market volatility, with management intending to provide updates once visibility into the second half of the year improves.

A comprehensive cost-discipline program has been implemented, including a hiring freeze for non-critical roles and a reduction in discretionary spending.

Liquidity reached a robust €1.2 billion at the end of Q1, an unusual achievement given the quarter's typical seasonal weakness in cash flow generation.

Fleet modernization efforts, specifically the deployment of 737 MAX aircraft, resulted in a 1.4% reduction in fuel burn per ASM and $5 million in cash savings.

Management identified potential fuel supply constraints in Europe and Asia as a monitored risk, though no shortages are expected within the next eight weeks.

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Management noted that international long-haul markets show the strongest recapture with no observed cracks in demand following fare increases.

Domestic yields have not yet reflected the same level of pass-through, but capacity reductions are expected to support better yields in the future.

Approximately 40% of Q2 capacity was already sold before fuel recapture initiatives were implemented, limiting the immediate impact of price adjustments.

The average 35-day air traffic liability cycle means higher fuel costs will be more fully reflected in ticket prices as the booking cycle renews.

Management explicitly stated they will never put their AICM slot portfolio at risk, even when adjusting capacity to avoid cash-negative flying.

Capacity cuts are being prioritized in point-to-point markets outside the Mexico City hub, such as Atlanta to Ixtapa-Zihuatanejo.

Management dismissed the immediate threat of domestic fare caps, noting they are actively educating legislators on the negative consumer impacts of such measures.

They highlighted that jet fuel is the only fuel not subsidized in Mexico, making price ceilings on fares particularly impractical.

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