Equity Analysis /
Mexico

Volaris: Flash VOLAR: 2Q21 outlook improves. Raised guidance

  • Volaris updated its 2Q21 guidance vs 2Q19, due to improved sales in both the domestic and international markets

  • This is the result of new trends as Covid-19 recovery has taken place, supporting a more favorable demand outlook

  • We believe that given this new scenario, it will maintain its leading position, leveraging a more accelerated recovery

Jose Itzamna Espitia Hernandez
Jose Itzamna Espitia Hernandez

Senior Equity Research Analyst, Infrastructure, Materials and Transportation

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Marissa Garza Ostos
Eridani Ruibal Ortega
Banorte
20 May 2021
Published byBanorte

VOLAR (BUY, PT $31.00)

Flash: 2Q21 outlook improves. Raised guidance

Volaris announced that due to improved sales performance in both the domestic and international markets, it updated its guidance for the second quarter of this year vs. 2Q19. This is the result of new trends as the recovery of Covid-19 has taken place, resulting in the following expected performance indicators:

Positive implication: Undoubtedly, the news continues to support a more favorable outlook for better-than-expected demand. We believe that given this new scenario, Volaris will maintain its leading position in the Mexican airline industry, leveraging a more accelerated recovery in passenger traffic - already at pre-Covid levels - while continuing to adequately manage its resources, as it now plans to operate a larger fleet in 2021, as well as maintaining its liquidity preservation plan. For now, we will be incorporating the new performance expectations for 2Q21 with positive implications.