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Volaris (VLRS)

Upturn stock ratingUpturn stock rating
$5.84
Last Close (24-hour delay)
Profit since last BUY20.41%
upturn advisory
Consider higher Upturn Star rating
BUY since 46 days
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  • SELL Advisory (Loss)​
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Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
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Upturn Advisory Summary

08/14/2025: VLRS (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

15 Analysts rated it

Moderately tracked stock, growing coverage, gaining market and investor attention.

1 Year Target Price $7.01

1 Year Target Price $7.01

Analysts Price Target For last 52 week
$7.01 Target price
52w Low $3.49
Current$5.84
52w High $9

Analysis of Past Performance

Type Stock
Historic Profit 13.6%
Avg. Invested days 35
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 2.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 08/14/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 683.02M USD
Price to earnings Ratio -
1Y Target Price 7.01
Price to earnings Ratio -
1Y Target Price 7.01
Volume (30-day avg) 15
Beta 1.47
52 Weeks Range 3.49 - 9.00
Updated Date 08/15/2025
52 Weeks Range 3.49 - 9.00
Updated Date 08/15/2025
Dividends yield (FY) -
Basic EPS (TTM) -0.29

Analyzing Revenue: Products, Geography and Growth

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-07-21
When After Market
Estimate -0.7981
Actual -0.55

Profitability

Profit Margin -1.05%
Operating Margin (TTM) -3.21%

Management Effectiveness

Return on Assets (TTM) 0.05%
Return on Equity (TTM) -11.78%

Valuation

Trailing PE -
Forward PE 15.13
Enterprise Value 3682015924
Price to Sales(TTM) 0.23
Enterprise Value 3682015924
Price to Sales(TTM) 0.23
Enterprise Value to Revenue 1.22
Enterprise Value to EBITDA 13.56
Shares Outstanding 114900000
Shares Floating 902780690
Shares Outstanding 114900000
Shares Floating 902780690
Percent Insiders -
Percent Institutions 37.72

ai summary icon Upturn AI SWOT

Volaris

stock logo

Company Overview

overview logo History and Background

Controladora Vuela Compau00f1u00eda de Aviaciu00f3n, S.A.B. de C.V., doing business as Volaris, was founded in 2006. It is an ultra-low-cost carrier (ULCC) based in Mexico, primarily serving routes to and from Mexico, the United States, and Central America. Volaris has focused on expanding its network and maintaining a cost-efficient operational model.

business area logo Core Business Areas

  • Passenger Air Transportation: The primary business is providing scheduled air transportation services to passengers on domestic and international routes. They focus on low base fares and offer various add-on services for an additional charge.
  • Ancillary Revenues: Generating revenue through ancillary services, such as baggage fees, seat selection, priority boarding, and in-flight sales.
  • Cargo Services: Offering cargo transportation services on their passenger flights.

leadership logo Leadership and Structure

Volaris is led by a management team with experience in the aviation industry. The organizational structure includes departments for operations, finance, marketing, and customer service, typical of an airline company.

Top Products and Market Share

overview logo Key Offerings

  • Scheduled Flights: Volaris provides scheduled passenger flights to over 70 destinations in Mexico, the United States, Central America, and South America. They have a significant market share in the Mexican domestic market and routes between Mexico and the US. Competitors include Aeromexico (Grupo Aeromexico SAB de CV), Viva Aerobus, and US-based airlines like United (UAL), American (AAL), and Delta (DAL) on international routes.
  • Ancillary Services: Volaris generates revenue from baggage fees, seat upgrades, priority boarding, and other optional services that customers can purchase. These services are a critical part of their ULCC model. Competitors include the ancillary service offerings of other airlines, but Volaris focuses on maximizing revenue through these sources.

Market Dynamics

industry overview logo Industry Overview

The airline industry is highly competitive and cyclical, influenced by factors such as fuel prices, economic conditions, and geopolitical events. The ULCC segment is growing, driven by price-sensitive travelers.

Positioning

Volaris is positioned as a leading ULCC in the Mexican and US-Mexico markets. Their competitive advantage lies in their low-cost structure, allowing them to offer competitive fares. They also have a strong presence in serving the VFR (Visiting Friends and Relatives) market.

Total Addressable Market (TAM)

The TAM for air travel between Mexico and the US, as well as within Mexico, is estimated to be worth billions of dollars annually. Volaris is well-positioned to capture a significant portion of this market through its ULCC model and growing network.

Upturn SWOT Analysis

Strengths

  • Low-cost structure
  • Strong brand recognition in Mexico
  • Extensive network in Mexico and US-Mexico routes
  • Modern and fuel-efficient fleet
  • High load factors

Weaknesses

  • Dependence on ancillary revenue
  • Vulnerability to fluctuations in fuel prices
  • Exposure to Mexican economic conditions
  • Customer service challenges common to ULCCs

Opportunities

  • Expanding network to new destinations
  • Increasing ancillary revenue per passenger
  • Capitalizing on growth in the Mexican middle class
  • Strengthening partnerships with other airlines
  • Further penetration of the VFR market

Threats

  • Competition from other airlines (Aeromexico, Viva Aerobus, US Carriers)
  • Fluctuations in fuel prices and currency exchange rates
  • Economic slowdown in Mexico or the US
  • Regulatory changes
  • Geopolitical instability

Competitors and Market Share

competitor logo Key Competitors

  • AEROMEX.MX
  • VB.MX
  • UAL
  • AAL
  • DAL

Competitive Landscape

Volaris has a competitive advantage in its low-cost structure and strong presence in the Mexican market. However, it faces competition from larger airlines like Aeromexico and US-based carriers, especially on international routes.

Growth Trajectory and Initiatives

Historical Growth: Volaris has experienced significant growth in passenger traffic and revenue over the past decade, driven by its ULCC model and expansion of its network.

Future Projections: Future growth projections vary based on analyst estimates and company guidance, depending on economic conditions and industry trends. Analysts often project continued growth in passenger traffic and revenue.

Recent Initiatives: Recent initiatives include expanding their route network, enhancing their ancillary revenue offerings, and investing in fuel-efficient aircraft.

Summary

Volaris is a leading ULCC in Mexico with a strong presence in the US-Mexico market, operating with a modern fleet. However, it remains vulnerable to external pressures like fuel prices and economic slowdowns. The airline has opportunities to continue its network expansion and revenue generation through ancillary services. Volaris needs to carefully manage its cost structure and customer service to maintain its competitive edge.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Company Website
  • SEC Filings
  • Analyst Reports
  • Industry Publications

Disclaimers:

This analysis is based on publicly available information and analyst estimates. It is not financial advice, and investors should conduct their own research before making investment decisions.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Volaris

Exchange NYSE
Headquaters Mexico City, DF, Mexico
IPO Launch date 2013-09-18
President, CEO & Director Mr. Enrique Javier Beltranena Mejicano
Sector Industrials
Industry Airlines
Full time employees 6951
Full time employees 6951

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, 23 cities in the United States, 4 cities in Central America, and 2 cities in South America. It also offers merchandising, travel agency, share administration trust, pre-delivery payments financing, aircraft administration trust, and loyalty program, as well as specialized and aeronautical technical services. As of December 31, 2024, the company leases 141 aircrafts and 18 spare engines. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. was incorporated in 2005 and is headquartered in Mexico City, Mexico.