Volaris Surges: Mega-Merger with Viva Aerobus Boosts Shares

Shares in Mexican airline Volaris soared nearly 20% following the announcement of a merger with rival Viva Aerobus. The combined entity will form Mexico's largest low-cost airline group. This development has significantly increased Volaris' market capitalization by 3.2 billion pesos, enhancing its position in the domestic aviation market.

Shares in the Mexican airline Volaris soared almost 20% on Friday, following the announcement of a strategic merger with its competitor, Viva Aerobus. Early trading saw the carrier enjoying its most profitable day ever.

With the gains recorded since the previous session's close, Volaris added 3.2 billion pesos ($177.87 million) to its market capitalization, now valued at 20.5 billion pesos. The two airlines, among the largest in Mexico, aim to create a new low-cost airline group poised to dominate the country's domestic travel sector.

This merger, described as a merger of equals, was first reported by Reuters. Despite the fusion, both airlines will maintain their distinct brands, reinforcing their presence in the market. ($1 = 17.9908 Mexican pesos)

(With inputs from agencies.)