The headline numbers for Controladora Vuela (VLRS) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Despite a 50% share price drop, I maintain Volaris as a Strong Buy due to its deep undervaluation and long-term growth prospects. Short-term headwinds include GTF engine issues extending to 2027, temporary demand weakness, and recent quarterly losses, but these are not permanent setbacks. Volaris' young, fuel-efficient fleet and significant stored capacity position it for strong revenue and earnings growth once operational constraints ease.
VLRS sees June traffic dip 1.4% despite a 0.6% capacity rise, pushing its load factor down to 83.9% from 85.6% last year.
VLRS reels from peso depreciation, slumping fares and rising costs as weak liquidity adds to mounting financial strain.
Volaris witnesses a lower May load factor as capacity outpaced demand, despite carrying 2.5 million passengers, up 4.2% year over year.
The consolidated load factor at VLRS declines 3.1 percentage points year over year to 81.6% in April.
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.
Although the revenue and EPS for Controladora Vuela (VLRS) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
The domestic load factor at VLRS declines 2.8 percentage points year over year to 89.4% in March.
The domestic load factor at VLRS declines 1.4 percentage points year over year to 89.2% in February.
Volaris Stock: Strong Buy Despite Headwinds
Although the revenue and EPS for Controladora Vuela (VLRS) give a sense of how its business performed in the quarter ended December 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.