This Airline Could Become a COVID-19 Winner
The COVID-19 pandemic has been a disaster for most passenger airlines. Air travel demand has plunged due to travel restrictions, virus fears, and the economic disruption brought on by the pandemic. With substantial fixed costs, most airlines haven't come close to offsetting their revenue losses in 2020.
In the short run, Mexican budget airline Volaris (NYSE: VLRS) hasn't been spared from this industry downturn. That said, Volaris is sustaining far less damage than its competitors, which could help it make permanent market share gains in Mexico.
Mexico was slower to shut down than many other countries. As a result, Volaris was able to grow unit revenue and improve its profitability year over year in the first quarter, logging a 3.9% operating margin.
Source Fool.com
