Mexican low-cost airline Controladora Vuela Compania de Aviacion SAB de CV (NYSE: VLRS), commonly known as Volaris, reported an unexpected first-quarter profit. Investors reacted by initially sending Volaris shares up by as much as 19% before the stock settled at up 4% as of 2 p.m. ET.

Volaris connects 44 cities in Mexico and 29 in the U.S., Central America, and South America via more than 450 daily flights. Like most of the airline industry, the company was hit hard by the pandemic, but it has been slowly making its way back thanks to strong leisure demand.

The airline earned $0.03 per share in the first quarter on revenue of $768 million, significantly ahead of Wall Street's forecast for a $0.14 per share loss on sales of $694.6 million. The company enjoyed strong pricing power, growing revenue by 5% year over year despite a 13% decrease in capacity.

Continue reading

Source Fool.com