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Thursday, January 08, 2015 11:40:11 AM
Mexican carrier Volaris is another airline that underperformed in 2014 but is primed for a comeback. The company is on pace to produce a low-single-digit pre-tax margin this year. The main cause of this poor performance was severe overcapacity in the Mexican air travel market in the first half of 2014.
Fortunately, supply and demand have been coming back into balance. Volaris has contributed to this recently by focusing all of its growth on the U.S. transborder market, where demand is stronger. As a result, its load factor increased year over year by 5.4 percentage points in October and by 7.0 percentage points in November.
This bodes well for Volaris reversing much of the 16.6% unit revenue drop that it experienced in Q4 2014. It will face easy comparisons in the first half of 2015, which should allow it to maintain its momentum.
Adding in the massive drop in jet fuel prices, Volaris has a recipe for boosting its pre-tax margin from the low single digits in 2014 to around 15% in 2015. Volaris is a fairly risky stock due to its inconsistent profitability, but it may well be the top-performing airline stock of 2015.
Recent VLRS News
- Volaris Reports May 2024 Traffic Results: 86% Load Factor • GlobeNewswire Inc. • 06/06/2024 11:42:21 PM
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- Volaris Reports April 2024 Traffic Results: 85% Load Factor • GlobeNewswire Inc. • 05/09/2024 01:00:00 PM
- Volaris Celebrates Frontier Airlines’ Reactivation of the Codeshare Agreement Between Both Airlines • GlobeNewswire Inc. • 05/09/2024 01:09:28 AM
- Volaris Reports Financial Results for the First Quarter 2024: Net Income of USD $33 million • GlobeNewswire Inc. • 04/23/2024 01:22:11 AM
- Volaris Reports March 2024 Traffic Results: 87% Load Factor • GlobeNewswire Inc. • 04/04/2024 01:13:02 AM
- Volaris Reports February 2024 Traffic Results: 86% Load Factor • GlobeNewswire Inc. • 03/06/2024 11:31:28 PM
- Volaris Reports Financial Results for the Fourth Quarter 2023: Net Income of USD $112 million • GlobeNewswire Inc. • 02/26/2024 10:34:02 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/26/2024 10:31:05 PM
- Volaris Reports January 2024 Traffic Results: 88% Load Factor • GlobeNewswire Inc. • 02/05/2024 10:05:00 PM
- Volaris First Quarter and Full Year 2024 Guidance • GlobeNewswire Inc. • 01/11/2024 11:52:43 PM
- Volaris Reports December 2023 Traffic Results: 85% Load Factor • GlobeNewswire Inc. • 01/04/2024 09:30:00 PM
- Volaris Reports November 2023 Traffic Results: 90% Load Factor • GlobeNewswire Inc. • 12/05/2023 03:45:57 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 11/22/2023 10:17:39 PM
- Volaris Reports October 2023 Traffic Results: 2% YoY Demand Growth with an 89% Load Factor • GlobeNewswire Inc. • 11/06/2023 09:30:00 PM
- Volaris Reports Financial Results for the Third Quarter 2023 • GlobeNewswire Inc. • 10/25/2023 01:57:55 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 10/10/2023 06:41:11 PM
- Volaris Reports September 2023 Traffic Results: 3% YoY Demand Growth with an 84% Load Factor; Updating Full-Year 2023 Guidance • GlobeNewswire Inc. • 10/10/2023 01:30:00 PM
- Volaris successfully completes Ps. $1.5 billion Asset-Backed Trust Notes Offering • GlobeNewswire Inc. • 09/29/2023 11:04:01 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/06/2023 08:13:47 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/06/2023 01:20:16 PM
- Volaris Reports August 2023 Traffic Results: 14% YoY Demand Growth with an 87% Load Factor • GlobeNewswire Inc. • 09/06/2023 01:20:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/07/2023 01:28:36 PM
- Volaris announces the release of the Integrated Annual Report 2022 • GlobeNewswire Inc. • 08/07/2023 01:20:35 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/02/2023 01:33:34 PM
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