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Controladora Vuela Compañía de Aviación, S.A.B. de C.V.NYSE:VLRS Stock Report

Market Cap US$878.3m
Share Price
n/a
1Y40.1%
7D-0.5%
1D0.8%
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Controladora Vuela Compañía de Aviación, S.A.B. de C.V.

NYSE:VLRS Stock Report

Market Cap: US$878.3m

Controladora Vuela Compañía de Aviación. de (VLRS) Stock Overview

Controladora Vuela Compañía de Aviación, S.A.B. More details

VLRS fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends0/6

Rewards

Trading at 90.4% below our estimate of its fair value

Earnings are forecast to grow 85.44% per year

Trading at good value compared to peers and industry

Risk Analysis

No risks detected for VLRS from our risk checks.

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Controladora Vuela Compañía de Aviación, S.A.B. de C.V. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Controladora Vuela Compañía de Aviación. de
Historical stock prices
Current Share PriceMex$7.62
52 Week HighMex$10.80
52 Week LowMex$5.41
Beta0.92
1 Month Change-18.85%
3 Month Change4.10%
1 Year Change40.07%
3 Year Change-38.45%
5 Year Change-65.49%
Change since IPO-45.61%

Recent News & Updates

Seeking Alpha • Jul 09

Volaris: A Discounted Airline With Turnaround Potential

Summary Controladora Vuela Compañía de Aviación (VLRS) is shifting focus to international routes, leveraging stronger demand and pricing power for higher-margin growth. June 2026 traffic data shows international passenger traffic outpacing capacity growth, with international load factor rising from 76.2% to 78.8%. VLRS faces persistent cost pressures from elevated jet fuel prices and high long-term debt, with profitability lagging and consensus expectations muted. I initiate VLRS at Hold, given discounted valuation, ongoing risks, and potential upside if international pricing gains offset cost headwinds. Read the full article on Seeking Alpha

Recent updates

Seeking Alpha • Jul 09

Volaris: A Discounted Airline With Turnaround Potential

Summary Controladora Vuela Compañía de Aviación (VLRS) is shifting focus to international routes, leveraging stronger demand and pricing power for higher-margin growth. June 2026 traffic data shows international passenger traffic outpacing capacity growth, with international load factor rising from 76.2% to 78.8%. VLRS faces persistent cost pressures from elevated jet fuel prices and high long-term debt, with profitability lagging and consensus expectations muted. I initiate VLRS at Hold, given discounted valuation, ongoing risks, and potential upside if international pricing gains offset cost headwinds. Read the full article on Seeking Alpha
Seeking Alpha • Apr 29

Volaris: A Speculative Buy Following Steep Decline

Summary Volaris reported a weak set of numbers Monday, leading to a 15% decline in the stock price. Shares are at fresh 52-week lows and approaching a retest of March 2020 levels. Volaris has looked cheap for a while, and may seem dirt cheap now based on traditional valuation metrics. However, the value case is less certain upon a closer dive. In particular, I would not expect the cash pile to be used for share repurchases. Volaris is a speculative buy for near-term trades. However, I prefer Mexican airport stocks for consistent long-term returns. Read the full article on Seeking Alpha
Seeking Alpha • Feb 26

Volaris Stock: Strong Buy Despite Headwinds

Summary Volaris faces operational challenges with a 7.1% sales decline and increasing costs, yet ancillary revenues show strength despite lower unit revenues and higher expenses. 2025 guidance is realistic but disappointing, with capacity growth revised down to 13% and EBITDAR margins expected to be similar to or slightly lower than 2024. Risks include delayed airplane deliveries, currency fluctuations, and US-Mexico trade tensions, but significant upside remains with expected EBITDA growth of 21% and free cash flow growth of 36%. Despite headwinds, I upgraded Volaris to a strong buy with a $12.83 price target, reflecting a conservative yet optimistic outlook. Read the full article on Seeking Alpha
Seeking Alpha • Jan 21

Volaris: A Hidden Gem With Strong Upside Potential

Summary Volaris is the only airline in a developing economy to sustain B+ or higher Factor Grades from Seeking Alpha. All Ratings are either Buy or Strong Buy. The resumption of Mexico's Category 1 with the FAA and the expected end of A320 NEOs grounded due to GTF engine issue by the end of 2025 are significant tailwinds. Added capacity due to solving GTF engine issue and new orders in the years to come could boost its fleet by 40% in FY'26 versus FY'24. Based on this, VLRS FY'26 Net Income is estimated to be $300M, which translates to 3x Price to Earnings. Volaris is a Strong Buy. Read the full article on Seeking Alpha
Seeking Alpha • Nov 06

Volaris: The Potential In This Airline Stock Remains Huge

Summary Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) has managed to keep costs low and mitigate risks, leading to an 11% stock gain since July, outperforming the S&P 500. Despite geopolitical and currency risks, Volaris benefits from nearshoring trends and a favorable Mexican investment climate, with significant cash holdings in US dollars. The third quarter saw a 15.5% operating margin increase due to lower fuel costs and effective capacity management, despite a 4.1% revenue decline. I maintain a buy rating for Volaris, with an updated price target of $18.25, reflecting strong management and potential 153% upside, even with risk adjustments. Read the full article on Seeking Alpha
Seeking Alpha • Oct 22

Volaris: Operational Resilience Amid Fleet Issues Underscores Significant Potential

Summary Volaris, Mexico's largest ultra-low-cost airline with a market cap over $800 million, has grown from 5 to over 230 routes since 2006, making it the tenth-largest airline. The company achieved record-high Q2 EBITDAR despite capacity reductions, driven by strategic planning, increased customer loyalty, and rising ancillary revenue. Volaris is making progress on grounded aircraft, with improved maintenance from Pratt & Whitney, and is expected to increase capacity in the second half of 2024, signaling strong growth ahead. VLRS is significantly undervalued based on its high long-term revenue growth potential and historical EV/Sales ratio, offering a strong entry point for investors. Read the full article on Seeking Alpha
Seeking Alpha • Jul 26

Volaris Hardly Flying High Despite Healthy Margins And Progress On Aircraft Groundings

Summary Good cost control allowed Volaris to report better-than-expected EBITDAR in Q2'24, with EBITDAR up 23% on a 7% revenue decline driven by 17% less capacity. Engine repair turnaround times are improving, but capacity is still likely to be down 14% in 2024, and prioritizing higher-profit routes can only offset a portion of that headwind. A weaker Mexican economy and weaker domestic travel is a risk for 2024, but over the longer term, Volaris still has an opportunity to benefit from growing air travel in Mexico. The market appears to be pricing in a quite pessimistic outlook; there is a lot of risk with emerging market airlines, but Volaris has proven out its low-cost model over time. Read the full article on Seeking Alpha
Seeking Alpha • Apr 27

Key Factors Driving Volaris' Success In The Aviation Market

Summary Controladora Vuela Compañía de Aviación delivered better than expected EPS and quarterly results. Analysts are expecting EPS growth for Q3 2024. Recent capex growth, bus to air conversion, internationalization efforts, and network growth could accelerate net income growth in the coming years. I believe that the company remains quite cheap at its current stock valuation. Read the full article on Seeking Alpha
Seeking Alpha • Jan 29

Volaris Stock Surges: What's Next?

Summary Volaris stock price has appreciated significantly since the buy rating was maintained, offering a profitable opportunity for investors. Volaris has provided guidance for the first quarter and full year 2024, with a steeper capacity reduction but expected higher unit revenues. Despite the challenges of the GTF grounding issues, Volaris is navigating well and has strong EBITDAR margins for 2024, with potential for further upside in stock price. Read the full article on Seeking Alpha
Seeking Alpha • Oct 30

Volaris Stock Beaten Down As It Navigates Through GTF Challenges

Summary Volaris reported Q3 results with missed EPS but beat revenue estimates. The company adjusted its full-year guidance due to issues with the Pratt & Whitney geared turbofan. Volaris plans to redistribute capacity to international routes and negotiate compensation for grounded aircraft. Read the full article on Seeking Alpha
Seeking Alpha • Oct 04

Volaris: Engine Recall Opportunity

Summary Volaris shares have dropped 35% since Pratt Whitney increased engine recall. Sensitivity analysis suggests that the potential impact has already been priced in. Estimate a 9% reduction in capacity and 16% impact to EBITDA in YE24. Read the full article on Seeking Alpha
Seeking Alpha • Sep 21

Volaris Stock: Creating Potential For A Rewarding Investment Opportunity

Summary Volaris stock has underperformed despite a bullish view, prompting a review of its valuation. Base fares declined, load factors softened, and there are problems with the GTF that powers part of the Volaris fleet. Opportunities include increased services to US airports, and market penetration potential in Mexico. Read the full article on Seeking Alpha
Seeking Alpha • Jul 12

Volaris: 'V' Is For Valuable, And Volatile

Summary Volaris, a Mexico City-based ultra-low-cost carrier, has an ambitious growth plan that includes expanding its fleet and transitioning to a more fuel-efficient fleet, requiring significant capital investment. The airline's shares have risen by over 70% this year, but the company remains sensitive to changes in fuel cost and USD exchange rate, with fuel being its biggest expense. Despite its growth, Volaris has struggled to translate this into net income, with the company's focus on managing leverage while funding business growth. Read the full article on Seeking Alpha
Seeking Alpha • Feb 22

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. reports Q4 earnings; issues FY23 guidance

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. press release (NYSE:VLRS): Q4 GAAP EPADS of $0.24 beats by $0.06. Revenue of $820M (+20.9% Y/Y) misses by $45.01M. Total revenue per available seat mile increased 2.1% to $8.63 cents. Available seat miles increased 18% to 9.5B. CASM ex fuel increased 7.9% to $4.39 cents. Adjusted CASM ex fuel increased 4.5% to $4.10 cents. EBITDAR of $207M, a 17% decrease. EBITDAR margin was 25.2%, a reduction of 11.7 percentage points. Net debt-to-LTM EBITDAR ratio stood at 3.9 times, compared to 2.5 times in the same period of 2021 and 3.4 times in the third quarter of 2022. Outlook: For the full year 2023, CAPEX is expected to be approximately $300 million, net of financed fleet predelivery payments. Total operating revenues of $3.2B to $3.4B vs. estimate of $3.35B; CASM ex fuel of $4.6 to $4.8 cents; EBITDAR margin of 29% to 31%; Net debt-EBITDAR ratio ≤2.5x; and ASM growth of ~10%.
Seeking Alpha • Feb 06

Volaris reports strong traffic growth in January

Mexican low-cost airline Volaris (NYSE:VLRS) has reported robust traffic growth for January 2023, with demand outpacing capacity. Volaris' capacity (measured in ASMs) increased by 16.0% Y/Y in the month, while demand (measured in RPMs) increased by 23.1%; the result was a load factor expansion of 5.0 pp YoY to 86.2%. The airline transported 2.9M passengers during the month, a 21.8% growth over January 2022. Demand in the domestic Mexican and international markets increased by 17.9% and 35.7%, respectively.
Seeking Alpha • Dec 06

Volaris reports airline traffic results for November

Volaris (NYSE:VLRS) on Tuesday said its November 2022 capacity increased by 19.5% year-over-year, while demand rose 18.8% for the month. November load factor was 88.0% (-0.6pp) and the ultra-low-cost carrier transported 2.7 million passengers during the month, a 13.7% increase compared to November 2021. Demand in the domestic Mexican and international markets increased by 12.2% and 37.4%, respectively in November. Year-to-date, Volaris' demand increased 28.0% YoY, with load factor expanding 1.1 pp year-over-year, to 85.7%.
Seeking Alpha • Nov 03

Volaris Stock: 2022 Fear Has Created A Huge Buying Opportunity

Summary Following a remarkable recovery in 2021, Volaris' profitability has evaporated in 2022 due to a huge jump in fuel prices. Volaris made a strategic decision to sacrifice short-term profits in 2022 by growing capacity rapidly to solidify its dominant position in a fast-growing market. Over the past decade, Volaris has always made a full recovery following periods of profit pressure. Volaris stock could triple or more within a few years. Mexican budget airline Volaris (VLRS) recovered from the COVID-19 pandemic faster than any other airline in the world. The company recorded a superb 18.1% operating margin last year: well ahead of its pre-pandemic performance. As a result, Volaris stock surged from a pandemic low around $3 to an all-time high closing price of $22.84 by July 2021. Despite some volatility in the following months, Volaris stock continued to trade above the $20 mark as recently as February. More recently, though, the shares have plunged back into single-digit territory, as soaring fuel prices have eroded the company's profitability. Data by YCharts However, this temporary margin pressure does not diminish Volaris' long-term earnings prospects. That makes Volaris stock extremely attractive following its sharp pullback. Fuel prices drive an earnings crunch Through the first nine months of 2022, Volaris was unprofitable, posting an operating margin of -0.8%. That compared to 16.5% for the first nine months of 2021 and 9.5% for the same period in 2019. This sharp reversal in Volaris' fortunes was driven entirely by a huge rise in fuel prices. Unit revenue ticked up by 2.6% while non-fuel unit costs decreased 2.3%. Fuel efficiency also improved slightly. But Volaris' average fuel cost per gallon jumped 79%, rising from $2.14 per gallon in the first nine months of 2021 to $3.83 in the comparable period of 2022. Even when jet fuel prices were low in 2021, Volaris spent more than a quarter of its revenue on jet fuel: by far its largest expense item. Year to date, that has jumped to 46%. This explains why the company has suffered such a massive earnings hit. Tradeoffs between growth and profitability Skeptics might note that most U.S. airlines have posted significant year-over-year earnings growth in 2022 despite facing similar profit headwinds from rising jet fuel prices. Some of that relates to the Mexican market's faster post-pandemic recovery. (Volaris is facing tougher comparisons than U.S. carriers.) But even relative to 2019, Volaris has experienced greater margin erosion. However, Volaris faces a different calculus than U.S. carriers. First, the U.S. air travel market is quite mature. That incentivizes U.S. airlines to prioritize profitability over growth by pulling back on capacity to support higher fares when fuel prices jump or economic conditions sour. Second, U.S. airlines have struggled with broad staffing shortages this year, particularly with respect to pilots. That forced a further moderation in growth plans across the sector in the first nine months of 2022. During this period, even formerly fast-growing ultra-low cost carriers (ULCCs) Spirit Airlines (SAVE) and Frontier Group (ULCC) increased capacity just 14% and 12%, respectively, compared to 2019. The combination of tight capacity and strong demand has enabled U.S. airlines to offset much of their fuel cost increases with big unit revenue gains. By contrast, the Mexican air travel market is growing rapidly. Domestic air trips per capita have more than tripled since 2006, driven primarily by ULCCs Volaris and VivaAerobus disrupting the market with lower fares. Moreover, there's plenty of room for further growth in trips per capita to reach the levels seen in other developing countries such as Turkey and Malaysia. (See slide 7.) Source: Volaris October 2022 presentation, slide 7. While reducing capacity and raising fares would likely maximize Volaris' near-term profitability, it would slow air travel adoption in Mexico. That would hurt the company's future growth. Additionally, Mexico's air travel market is still adjusting to the late-2020 collapse of Interjet, which was the country's third-largest airline as recently as 2019. Cutting capacity now would give rivals Aeromexico and VivaAerobus a jump on winning the loyalty of former Interjet customers. Accordingly, Volaris operated 42% more capacity in the first nine months of 2022 than it did in the same period of 2019. This included 28% growth just over the past year. It's not surprising that Volaris could not raise fares significantly to offset higher fuel prices while growing at this pace. The long-term case for Volaris remains intact Some readers might ask, "What's the point of growing quickly if you're not making money?" It's a reasonable question, given that profitless growth has been a hallmark of the airline industry for most of its history. That said, consolidation drove a dramatic structural improvement in the U.S. airline industry's profitability during the 2010s. In recent years, the four largest U.S. airlines have controlled more than 80% of the market, paving the way for more rational competition. For comparison, following Interjet's collapse, Mexico's three major airlines have a combined 96% share of the domestic market. Volaris leads the way with 40% market share. This market structure should enable solid industry-level profitability over the long term. Volaris is especially well positioned, thanks to its leading market share and rock-bottom costs. Source: Volaris October 2022 presentation, slide 6. Investors have already seen glimpses of Volaris' earnings potential. The company recorded a net margin of 7.6% in 2019, and after posting a big loss in 2020 due to the pandemic, adjusted net margin improved to 8.7% in 2021. Volaris also had a run of strong profitability in 2015 and 2016. Of course, there have also been periodic setbacks during Volaris' nine years as a public company. But each time, Volaris has come back stronger, with significantly higher revenue and earnings. Considering its best-in-class cost structure and leading market share in the highly-consolidated Mexican air travel market, Volaris is likely to make another robust recovery in the next couple of years. Data by YCharts A dramatically undervalued stock Volaris estimates that it will end 2022 with revenue between $2.8 billion and $3 billion and an EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) margin "in the low twenties." Assuming revenue of $2.85 billion and a 21% EBITDAR margin, EBITDAR would come in right around $600 million. Based on its recent lease-adjusted enterprise value of approximately $3.19 billion, Volaris stock trades for around 5.3 times estimated 2022 EBITDAR. Source: Seeking Alpha VLRS quote page. A valuation in the 5-6 times EBITDAR range would be reasonable given the risk inherent in the airline business and the greater volatility of the Mexican airline industry compared to the U.S., but only as a mid-cycle average. For Volaris, 2022 will likely prove to be a cyclical trough for profitability due to this year's spike in fuel prices. By contrast, EBITDAR came in around $800 million last year. Moreover, management estimates that Volaris' margins should average in the "low to mid-30s" over the long term. While that's a bit lower than the 36.7% EBITDAR margin Volaris posted in 2021, revenue is on track to grow about 30% this year. That puts Volaris' normalized EBITDAR potential (based on 2022 revenue and a low to mid-30s EBITDAR margin) at around $900 million-$1 billion. Even at 5 times the low end of that EBITDAR range (i.e., $4.5 billion), Volaris stock would have a fair value of just over $20: up more than 150% from its Wednesday closing price of $8.00. A 6X multiple on $1 billion of EBITDAR would imply a $33 stock price. Looking ahead, Volaris plans to slow its capacity growth to around 10% in 2023. That will lead to lower revenue growth, but it will create a foundation for firmer pricing to support a margin recovery. Additionally, fuel prices are likely to moderate over the next year. Crude oil prices have already come down significantly from the peaks seen this spring and summer, with the forward curve pricing in further declines. Crack spreads have also been dramatically higher than usual in 2022 and will likely moderate in 2023. Thus, Volaris' margin recovery is likely to begin by Q2 2023, if not earlier. That should in turn help Volaris stock regain its momentum. The key risks As noted above, Volaris has historically reported extremely volatile earnings results. To some extent, this stems from the Mexican air travel market being prone to bouts of irrational competition. Interjet's market exit likely reduced this tendency, but it's too soon to be confident that Mexican airlines will be more careful about protecting the bottom line in the future.
Seeking Alpha • Oct 25

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. reports Q3 mixed earnings; updates FY22 guidance

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. press release (NYSE:VLRS): Q3 GAAP EPADS of $0.30 beats by $0.42. Revenue of $769M (+20.2% Y/Y) misses by $27.58M. Total revenue per available seat mile decreased 2.4% to $8.2 cents. ASMs grew by 22% for the third quarter compared to 2021 and by 48% compared to 2019. Volaris transported 8.1M passengers in the quarter, an increase of 22.2%.  EBITDAR was $175M, a decrease of 33%, negatively impacted by higher fuel and landing, take-offs, and navigation expenses. EBITDAR margin was 22.8%, a decrease of 18.1% points. Cash, cash equivalents and restricted cash position totaled $750M, representing 28% of the last twelve months' total operating revenue. Net debt-to-LTM EBITDAR ratio of 3.4 times. Volaris' full year 2022 guidance: ASM growth of 25% compared to 2021; Operating revenue in the range of $2.8 to $3.0 billion vs. consensus of $2.90B; CASM ex-fuel increase of approximately 1% compared to 2021; EBITDAR margin in the low twenties and finally, CAPEX of $145M.
Seeking Alpha • Oct 05

Volaris reports 25% Y/Y demand growth with 87% load factor

Controladora Vuela (NYSE:VLRS) capacity increased 17.2% Y/Y while demand (measured in RPMs) increased 25.2%. Load factor grew 560 bps to 87.4%. The airline transported 2.6M passengers during the month, a 24.4% increase compared to the same month of 2021. Demand in the domestic Mexican markets up 21.8% and international markets grew 34.7%. On YTD basis, demand increased 30.0% Y/Y, with load factor expanding 110 bps to 84.9%. Enrique Beltranena, Volaris' President and CEO said: "Load factor reached a monthly record for September as demand remained strong. Forward bookings are solid, and we expect to maintain a strong load factor for the remainder of the year. We maintain our flexible network strategy and will continue stimulating our markets with our ULCC model."
Seeking Alpha • Sep 05

Volaris reports 20% increase in August's traffic demand

Controladora Vuela (NYSE:VLRS) reported 19.8% increase in capacity for August 2022 while demand ticked 20% higher on year-over-year. Load factor was 84.9%. Passenger demand in the domestic Mexican and international markets increased 18.7% and 23.4%, respectively. YTD demand rose 30.7% Y/Y, with load factor expanding 0.5 pp year-over-year, to 84.6%. "Demand was strong in all our markets, and we have been able to maintain strong load factors while continuing to expand our network. We maintain our flexible network strategy and will continue stimulating our markets with low fares and adding new capacity based on the market demand," said Volaris' President and CEO Enrique Beltranena.
Seeking Alpha • Aug 08

Volaris reports 22% increase in July's traffic demand

Controladora Vuela Compañía de Aviación (NYSE:VLRS) reported 28.8% growth in capacity for July 2022 while demand ticked 21.9% higher on year-over-year.  Load factor was 84.7% (-4.8% Y/Y). Passenger demand in the domestic Mexican and international markets increased 22.8% and 19.6%, respectively.  YTD demand rose 32.2% Y/Y with a load factor expansion of 0.1% to 84.1%. "We continue to be disciplined about adding capacity to match our passenger demand. The Company continues to modify its network to rationalize growth in an environment reflective of high jet fuel prices and to reallocate capacity as appropriate to more profitable routes," said Volaris' President and CEO Enrique Beltranena.  Shares are up 2.16% Monday. Earlier: Controladora Vuela Compañía de Aviación, S.A.B. de C.V. Q2 mixed results, raises FY22 revenue guidance
Seeking Alpha • Jul 22

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. Q2 mixed results, raises FY22 revenue guidance

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. press release (NYSE:VLRS): Q2 GAAP EPADS of -$0.42 beats by $0.26. Revenue of $691M (+20.4% Y/Y) misses by $3.38M. Total revenue per available seat mile remained flat at $8.3 cents. EBITDAR of $107 million, a 54% decrease. EBITDAR margin was 15.5%, a decrease of 25.3 percentage points. Net debt-to-LTM EBITDAR ratio of 2.9 times, compared to 4.5 times. Volaris is updating its full year 2022 guidance: Adjusts its capacity growth guidance (ASMs) to 23-25% compared to 2021; Holds its total operating revenue in the range of $2.8 to $3.0 billion for 2022 vs. consensus of $2.80B (prior US$2.6 to US$2.8 billion). Continues expecting a full year CASM ex-fuel growth between 1% and 3% compared to 2021. Decreased its EBITDAR margin guidance from high twenties to low twenties. Confirms CAPEX in the range of $140 to $145 million.
Seeking Alpha • Jul 06

Volaris traffic grows 10.9% in June

Volaris (NYSE:VLRS) said Wednesday prelim. Jun. demand (RPMs) rose 10.9% Y/Y, while capacity (ASMs) increased 17.2% Y/Y. VLRS reported Jun. load factor of 84.4% (-4.7 pp Y/Y). The airline transported 2.4M passengers during the month, up 10.4% Y/Y. Domestic and international RPMs increased 9.9% and 13.5%, respectively, Y/Y. VLRS' RPMs increased 34.5% Y/Y YTD, with a load factor expansion of 1.1 pp, to 84%. "During the quarter, VLRS passed on a portion of higher jet prices through fare increases or, in certain cases, reallocated flights to more profitable routes. We will continue to be nimble and responsive to market conditions in the coming months," said VLRS CEO Enrique Beltranena.
Seeking Alpha • Jun 02

Volaris: My Favorite Airline, But I Prefer The Airports

After tumbling 7% Wednesday, Mexican airline Volaris is now down 19% year-to-date. Volaris was the world's most profitable airline in the world in 2021 on an EBITDAR basis, and I'm also upbeat on the Mexican aviation market. Despite these factors, I don't own Volaris stock. I see a better risk/reward set-up in the Mexican airport operators.
Seeking Alpha • Jan 03

Volaris: Best-Performing Airline In 2021, And Still Significantly Undervalued

Volaris was the best-performing airline stock in 2021, appreciating by 47% and producing a 36% EBITDAR margin through the 3rd quarter - the highest of 54 airlines reviewed. VLRS has emerged as the de facto winner with a 43% domestic market share, up from 30% before the pandemic. Volaris is also rapidly becoming a leading Central American airline. As part of the Indigo Partners consortium (Volaris, Wizz Air and Frontier), they now have a multi-year fleet plan finalized with Airbus. Volaris is positioned for years of top-line double-digit growth. 2021 revenue will be up more than 25% over 2019, and I forecast 2022 capacity to be up at least 25% over 2021. In 2022, VLRS should produce $2.7B to $2.9B of revenue and over $1B of EBITDAR. At these levels, using historical multiples, the Company could see a share price of over $40 by year end, up from the current price of $17.65.
Seeking Alpha • Dec 20

Volaris: Don't Miss The Forest For The Trees

The shares of Mexican low-cost carrier Volaris have given back some of their 2021 gains in recent months. Short-term headwinds including the company's decision not to hedge against higher oil prices, the resurgence of Covid-19, and the perceived competitive pressure have weighed on the stock. The fears are overblown, in my opinion, and I view the current weakness as an opportunity to get this fast-growing airline at a bargain price.
Seeking Alpha • Sep 13

Volaris: A Fast-Growing Airline, At A Reasonable Price

Volaris is a Mexican ultra-low-cost carrier, focused mainly on Mexico and Central America. Volaris emerged as a clear winner from the pandemic, cementing its place as the leading airline in Mexico. The growth story is far from over, as Volaris intends to expand its operations to the likes of El Salvador and Colombia, on top of the ongoing Mexican progress. Despite a strong run-up over the past year, the shares remain attractively priced in light of the company's prospects.

Shareholder Returns

VLRSUS AirlinesUS Market
7D-0.5%-0.2%-1.0%
1Y40.1%21.6%14.7%

Return vs Industry: VLRS exceeded the US Airlines industry which returned 20.5% over the past year.

Return vs Market: VLRS exceeded the US Market which returned 15.1% over the past year.

Price Volatility

Is VLRS's price volatile compared to industry and market?
VLRS volatility
VLRS Average Weekly Movement7.2%
Airlines Industry Average Movement8.0%
Market Average Movement7.1%
10% most volatile stocks in US Market16.0%
10% least volatile stocks in US Market3.2%

Stable Share Price: VLRS has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: VLRS's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20057,208Enrique Beltranena Mejicanowww.volaris.com

Controladora Vuela Compañía de Aviación, S.A.B. de C.V., through its subsidiary, Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V., provides air transportation services for passengers, cargo, and mail in Mexico and internationally. The company operates approximately 550 daily flights on routes connecting 44 cities in Mexico, 22 cities in the United States, 4 cities in Central America, and 2 cities in South America. It also offers travel agency, share administration trust, pre-delivery payments financing, aircraft administration trust, and loyalty program, as well as specialized and aeronautical technical services.

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. Fundamentals Summary

How do Controladora Vuela Compañía de Aviación. de's earnings and revenue compare to its market cap?
VLRS fundamental statistics
Market capUS$878.26m
Earnings (TTM)-US$188.87m
Revenue (TTM)US$3.30b
0.3x
P/S Ratio
-4.7x
P/E Ratio

Is VLRS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
VLRS income statement (TTM)
RevenueUS$3.30b
Cost of RevenueUS$2.64b
Gross ProfitUS$657.20m
Other ExpensesUS$846.07m
Earnings-US$188.87m

Last Reported Earnings

Jun 30, 2026

Next Earnings Date

n/a

Earnings per share (EPS)-0.16
Gross Margin19.94%
Net Profit Margin-5.73%
Debt/Equity Ratio1,017.6%

How did VLRS perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/07/26 02:16
End of Day Share Price 2026/07/24 00:00
Earnings2026/06/30
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. is covered by 24 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Antonio Hernandez Velez LeijaActinver Case de Bolsa, S.A. de C.V.
Ramón Ortiz ReyesActinver Case de Bolsa, S.A. de C.V.
Pablo Monsivais MendozaBarclays