Mexican airline Volaris soars on Q1 results
** Shares in Mexican airline Volaris gain altitude in early trading after logging a net profit in the first quarter, surprising to the upside in a seasonally weak period
** The carrier's shares leap 14% to 15.52 pesos apiece on the Mexican bourse, while on the New York Stock Exchange they soar nearly 15% to $9.19 apiece
** Volaris pulled in $33 million in net profit in the quarter, compared to a $71 million loss a year ago
** Revenues climbed 5% to $768 million as the occupation factor grew nearly 2 percentage points
** The growth comes despite the setback from Pratt & Whitney motor inspections, which has grounded part of Volaris' fleet and caused available seat miles (ASMs), a measure of passenger carrying capacity, to slide 13%
** "Better yields support (the) top-line beat," writes Santander analyst Pablo Ricalde
** Volaris also upped its guidance for the year, now seeing an EBITDA margin at 32% to 34%, from the earlier forecast of 31% to 33%, while maintaining its ASM outlook
** The carrier will also boost spending this year, now projecting $400 million in capex
** The changes "incorporate better yields" and a stronger Mexican peso, Ricalde says
Reporting by Kylie Madry
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
