Shares in Mexican low-cost carrier Volaris rose to levels not seen in four and a half years on Thursday after it raised some of its financial targets on better sales performance.
The titles of Volaris, which has become the largest airline in the country by passenger transportation, gained 2.4% to 36.18 pesos on Thursday, their best level since the end of October 2016.
"Without a doubt, this news continues to support a more favorable outlook regarding better-than-expected demand," analysts at financial group Banorte said in a report. "We believe that, in the face of this new scenario, Volaris will maintain its leading position in the airline industry in Mexico."
The airline, which like its rivals has been suffering from the onslaught of the coronavirus that undermined passenger demand, raised its guidance for the second quarter citing better sales performance in both the domestic and international markets in recent weeks. .
Volaris expects to generate positive cash flow in the quarter of up to $ 1 million per day, compared to a previous estimate of consumption in the period of $ 600,000.
Capacity for the second quarter, measured in available seat miles (ASM), is now projected at up to 113% for the same period of 2019, against a previous estimate of 110%, the company reported.
