Shares of Controladora Vuela Compania de Aviacion SAB de CV (VLRS), the parent company of Mexican ultra-low-cost airline Volaris, plummeted 5.59% in pre-market trading on Monday, February 24th, 2025. The sharp decline followed the company's disappointing fourth-quarter 2024 financial results.
The key highlights from Volaris' Q4 earnings report include:
Volaris cited ongoing challenges from grounded aircraft due to inspections of Pratt & Whitney GTF engines as a significant headwind impacting its operations and profitability. The company expects these engine disruptions to continue affecting a substantial portion of its fleet through 2027, leading to higher costs and operational inefficiencies.
While Volaris plans to prioritize profitability and capacity discipline in 2025, its cautious outlook and the persistent engine inspection issues weighed heavily on investor sentiment, contributing to the steep sell-off in the company's shares on Monday.
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