How Should You Play VLRS Stock Post November Capacity Decline?

Zacks12-10

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. VLRS, popularly known as Volaris, reported a 3.7% year-over-year decline in consolidated available seat miles (ASMs: a measure of capacity) for ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2490049814?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/fQdAvaW92mX2nsT7hmgaNA--~B/aD01MDg7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/bdd59e6db25ac43e6109a4e27ccf3b72","is_english":true,"pubTime":"2024-12-10 23:35","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2490049814","market":"us","top_or_hot":-1,"title":"How Should You Play VLRS Stock Post November Capacity Decline?","media":"Zacks","content":"<div>\n<p>Controladora Vuela Compañía de Aviación, S.A.B. de C.V. VLRS, popularly known as Volaris, reported a 3.7% year-over-year decline in consolidated available seat miles (ASMs: a measure of capacity) for ...</p>\n\n<a href=\"https://finance.yahoo.com/news/play-vlrs-stock-post-november-153500614.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Should You Play VLRS Stock Post November Capacity Decline?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Should You Play VLRS Stock Post November Capacity Decline?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-10 23:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/play-vlrs-stock-post-november-153500614.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Controladora Vuela Compañía de Aviación, S.A.B. de C.V. VLRS, popularly known as Volaris, reported a 3.7% year-over-year decline in consolidated available seat miles (ASMs: a measure of capacity) for ...</p>\n\n<a href=\"https://finance.yahoo.com/news/play-vlrs-stock-post-november-153500614.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4539","symbol_name":"次新股","start_time":0,"source_url":"https://finance.yahoo.com/news/play-vlrs-stock-post-november-153500614.html","article_id":"2490049814","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/fQdAvaW92mX2nsT7hmgaNA--~B/aD01MDg7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/bdd59e6db25ac43e6109a4e27ccf3b72"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2490049814","pubTimestamp":1733844900,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Controladora Vuela Compaía de Aviación, S.A.B. de C.V. VLRS, popularly known as Volaris, reported a 3.7% year-over-year decline in consolidated available seat miles  for the month of November. The capacity decline at this Mexican ultra-low-cost carrier was due to Pratt & Whitney engine inspections. Due to the engine inspections, domestic ASMs declined 9.6% year over year. International ASMs increased 6% in the month.On a consolidated basis, revenue passenger miles  were down 6.9%, with domestic RPMs falling 10.5%, while international RPMs were flat. With consolidated traffic declining more than capacity, the consolidated load factor  decreased by 3 percentage points to 86.8% in the month. Since operations were impacted in 2023 by accelerating engine inspections, the year-over-year comparisons of RPMs and load factor remain unfavorable.With a considerable part of its Pratt & Whitney-powered narrowbody fleet out of service, consolidated capacity has been reduced by 13.4% year to date. Wi","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4539":"次新股","ALGT":"忠诚旅游","BK4500":"航空公司","BK4212":"包装食品与肉类","ULCC":"Frontier Group Holdings, Inc.","POST":"Post Holdings","VLRS":"Volaris航空","BK4008":"航空公司"},"translate_title":"11月产能下降后，您应该如何玩VLRS股票？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ALGT":1,"POST":1,"ULCC":1,"VLRS":1},"content_text":"Controladora Vuela Compañía de Aviación, S.A.B. de C.V. VLRS, popularly known as Volaris, reported a 3.7% year-over-year decline in consolidated available seat miles (ASMs: a measure of capacity) for the month of November. The capacity decline at this Mexican ultra-low-cost carrier was due to Pratt & Whitney engine inspections. Due to the engine inspections, domestic ASMs declined 9.6% year over year. International ASMs increased 6% in the month.\nOn a consolidated basis, revenue passenger miles (RPMs: a measure of traffic) were down 6.9%, with domestic RPMs falling 10.5%, while international RPMs were flat. With consolidated traffic declining more than capacity, the consolidated load factor (% of seats filled by passengers) decreased by 3 percentage points to 86.8% in the month. Since operations were impacted in 2023 by accelerating engine inspections, the year-over-year comparisons of RPMs and load factor remain unfavorable.\nWith a considerable part of its Pratt & Whitney-powered narrowbody fleet out of service, consolidated capacity has been reduced by 13.4% year to date.  With the Mexican carrier gradually adding capacity as engines and aircraft return, the scenario with respect to December capacity might improve. As a result, the company’s expectation of a 13% capacity decline for full-year 2024 is less than the year-to-date reduction.\nHoliday Season Likely to Aid VLRS Revenues\nDespite the massive capacity reduction due to the engine inspections, the Mexican airline expects total revenues for 2024 to be close to 2023. The top line is being aided by an increase in base fares and ancillary revenue per passenger. In November, 2.6 million passengers were transported through various VLRS flights. Passenger volume increased 4% month over month.\nDemand is likely to swell further in December during the peak holiday season. Management stated that booking trends remain robust for the peak holiday season. To meet the anticipated demand swell, VLRS is boosting transborder capacity. \nTo boost winter travel, VLRS has expanded its network, having launched seven new routes from Monterrey in November. Out of the seven routes, three routes are to the United States, thereby offering more travel options for passengers apart from strengthening the Mexican city’s connectivity. The new routes are being served by Volaris’ fuel-efficient A320neo aircraft, equipped with all modern comforts.\nImpressive Performance of VLRS Stock\nDriven by the strong demand scenario across its network, shares of Volaris have performed well over the past month, outperforming the industry and ultra-low-cost carriers like Allegiant Travel Company ALGT and Frontier Group ULCC .\nOne-Month Price Comparison\nImage Source: Zacks Investment Research\nOther Factors Supporting VLRS\nVolaris is gaining from the immense opportunity to switch bus passengers to air travel. VLRS has converted millions of bus passengers into first-time air travelers. The long-distance bus network in Mexico is seen by VLRS as an ideal growth opportunity to attract passengers.\nAs a result of the restoration of Mexico's safety rating by the United States, capacity rationalization has emerged in Mexico's domestic market. This has created opportunities for Volaris in the transborder market.\nVLRS’ cost-management efforts are praiseworthy as well. Its environment-friendly approach is another positive. It aims to reduce CO2 emissions substantially going forward. VLRS’ stance supports the initiatives aimed at decarbonization of the aviation industry by 2050 as part of the International Air Transport Association or IATA’s Fly Net Zero initiative. IATA is a trade association that represents the world's airline industry.\nVLRS Shares Trading at a Discount\nVLRS stock is quite cheap, as its Value Score of A does not suggest a stretched valuation.\nIn terms of price-to-earnings (forward 12-month), VLRS is trading at 9.9X, lower than its 3-year median of 11.25X and the industry’s 17.36X.\nImage Source: Zacks Investment Research\nTechnical indicators suggest continued strong performance for VLRS. The stock trades above its 50-day and 200-day moving averages, signaling robust upward momentum and price stability. This technical strength underscores positive market sentiment and confidence in VLRS’ prospects.\nMoving-Average Data\nImage Source: Zacks Investment Research\nFinal Verdict: Buy VLRS Stock Now\nIn view of the positives highlighted above, VLRS stock presents a compelling investment opportunity now. This Zacks Rank #2 (Buy) undervalued stock is an ideal candidate for addition to one’s portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. \nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nAllegiant Travel Company (ALGT) : Free Stock Analysis Report\nControladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS) : Free Stock Analysis Report\nFrontier Group Holdings, Inc. (ULCC) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2490049814"}