Gross margins have deteriorated from a peak of 27.1% in 2023Q4 to a negative 0.3% in 2026Q1, reflecting an inability to pass rising operational costs to consumers.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 3.13B | 3.04B | 3.14B | 3.26B | 2.85B | 2.2B | 54.06M | 94.84M | 71.82M | 63.54M | 54.59M | 60.61M | 69.17M | 77.7M | 66.96M | 46.68M |
| Revenue Growth % | 2.51% | -3.32% | -3.59% | 14.46% | 29.4% | 3970.23% | -43% | 32.07% | 13.02% | 16.4% | -9.93% | -12.38% | -10.98% | 16.03% | 43.43% | - |
| Cost of Goods Sold | 2.95B | 2.86B | 2.63B | 2.75B | 2.6B | 1.65B | 55.37M | 76.86M | 65.31M | 53.62M | 44.04M | 47.01M | 61.93M | 69.65M | 58.95M | 43.2M |
| COGS % of Revenue | - | 94.28% | 83.59% | 84.5% | 91.38% | 75.06% | 102.42% | 81.04% | 90.94% | 84.38% | 80.68% | 77.57% | 89.53% | 89.65% | 88.04% | 92.54% |
| Gross Profit | 175.84M | 173.84M | 515.5M | 505.2M | 245.5M | 548.84M | -1.31M | 17.98M | 6.5M | 9.92M | 10.55M | 13.6M | 7.24M | 8.04M | 8.01M | 3.48M |
| Gross Margin % | 5.62% | 5.72% | 16.41% | 15.5% | 8.62% | 24.94% | -2.42% | 18.96% | 9.06% | 15.62% | 19.32% | 22.43% | 10.47% | 10.35% | 11.96% | 7.46% |
| Gross Profit Growth % | - | -66.28% | 2.04% | 105.79% | -55.27% | 42046.07% | -107.28% | 176.44% | -34.46% | -5.89% | -22.43% | 87.79% | -10.01% | 0.46% | 129.82% | - |
| Operating Expenses | 86.97M | 74.97M | 135.91M | 294.31M | 221.35M | 151.81M | 5.41M | 6.1M | 5.1M | 6.74M | 4.27M | 5.23M | 6.23M | 6.15M | 5.84M | 5.45M |
| OpEx % of Revenue | - | 2.47% | 4.33% | 9.03% | 7.77% | 6.9% | 10% | 6.43% | 7.1% | 10.61% | 7.82% | 8.62% | 9.01% | 7.91% | 8.72% | 11.67% |
| Selling, General & Admin | 235.65M | 234.65M | 282.48M | 313.28M | 206M | 158.8M | 6.89M | 6.78M | 6.53M | 6.75M | 5.28M | 5.67M | 6.13M | 6.07M | 5.78M | 3.95M |
| SG&A % of Revenue | - | 7.72% | 8.99% | 9.61% | 7.24% | 7.22% | 12.74% | 7.15% | 9.1% | 10.62% | 9.67% | 9.35% | 8.87% | 7.81% | 8.63% | 8.45% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -4M | -159.68M | -146.57M | -18.97M | 15.35M | -6.99M | -1.48M | -685.5K | -1.44M | -6.13K | -1.01M | -442.57K | 100.41K | 79.87K | 65.14K | 1.5M |
| Operating Income | 88.88M | 98.88M | 379.59M | 210.9M | 24.14M | 397.03M | -6.71M | 11.89M | 1.41M | 3.19M | 6.28M | 8.37M | 1.01M | 1.9M | 2.17M | -1.96M |
| Operating Margin % | 2.84% | 3.26% | 12.08% | 6.47% | 0.85% | 18.04% | -12.42% | 12.53% | 1.96% | 5.01% | 11.5% | 13.81% | 1.45% | 2.44% | 3.24% | -4.2% |
| Operating Income Growth % | - | -73.95% | 79.99% | 773.6% | -93.92% | 6013.21% | -156.49% | 745.06% | -55.85% | -49.25% | -25% | 732.12% | -46.97% | -12.49% | 210.51% | - |
| EBITDA | 612.47M | 755.62M | 972.64M | 707.21M | 442.07M | 723.43M | 7.29M | 26.57M | 13.36M | 13.4M | 7.52M | 9.89M | 2.69M | 3.7M | 3.38M | -1.42M |
| EBITDA Margin % | 19.58% | 24.88% | 30.96% | 21.7% | 15.53% | 32.88% | 13.49% | 28.01% | 18.6% | 21.1% | 13.78% | 16.32% | 3.89% | 4.76% | 5.04% | -3.04% |
| EBITDA Growth % | -3.63% | -22.31% | 37.53% | 59.98% | -38.89% | 9821.5% | -72.55% | 98.86% | -0.34% | 78.14% | -23.93% | 267.23% | -27.17% | 9.54% | 337.81% | - |
| D&A (Non-Cash Add-back) | 511.59M | 656.75M | 593.05M | 496.31M | 417.93M | 326.4M | 14.01M | 14.68M | 11.95M | 10.22M | 1.25M | 1.52M | 1.69M | 1.8M | 1.21M | 541.46K |
| EBIT | 175.53M | 193.53M | 473.58M | 224.71M | 59.12M | 274.58M | -6.78M | 16.36M | 1.52M | 5.19M | 11.55M | 11.74M | 3.26M | 2.02M | 1.57M | -1.35M |
| Net Interest Income | -261.94M | -263.94M | -245M | -185.15M | -179.47M | -136.42M | -114.9M | -107.11M | -89.61M | 994.07K | 3.26M | 1.47M | -602.15K | -7.75M | -5.93M | -3.75M |
| Interest Income | 44.84M | 47.84M | 49M | 33.61M | 13M | 3.15M | 4.63M | 10.79M | 7.92M | 5.56M | 109.67M | 2.72M | 1.56M | 1.92M | 1.06M | 397.85K |
| Interest Expense | 306.78M | 311.78M | 294M | 218.76M | 193M | 139.58M | 119.52M | 117.9M | 97.54M | 4.57M | 1.69M | 1.26M | 2.17M | 9.67M | 6.99M | 4.15M |
| Other Income/Expense | -220.13M | -217.13M | -196.9M | -203.45M | -156.5M | -260M | -6.03M | -1.7M | -4.81M | -1.86M | 5.2M | 3.31M | 2.17M | -206.37K | -982.32K | 304.81K |
| Pretax Income | -131.25M | -118.25M | 182.69M | 7.44M | -132.36M | 137.03M | -12.75M | 10.19M | -3.4M | 1.32M | 11.48M | 11.68M | 3.17M | 1.69M | 1.18M | -1.66M |
| Pretax Margin % | -4.2% | -3.89% | 5.81% | 0.23% | -4.65% | 6.23% | -23.58% | 10.74% | -4.73% | 2.08% | 21.03% | 19.26% | 4.59% | 2.18% | 1.77% | -3.55% |
| Income Tax | -7.38M | -14.38M | 56.31M | -377K | -52.14M | 30.57M | -3.1M | 2.99M | -920.07K | 609.03K | 3.39M | 3.46M | 190.8K | 104.87K | 19.95K | 2.5K |
| Effective Tax Rate % | 5.62% | 12.16% | 30.83% | -5.07% | 39.39% | 22.31% | 24.36% | 29.32% | 27.06% | 46.02% | 29.52% | 29.65% | 6.01% | 6.2% | 1.68% | -0.15% |
| Net Income | -123.87M | -103.87M | 126.38M | 7.82M | -80.22M | 106.45M | -9.64M | 7.2M | -2.48M | 714.35K | 8.09M | 8.21M | 2.98M | 1.61M | 1.23M | -1.54M |
| Net Margin % | -3.96% | -3.42% | 4.02% | 0.24% | -2.82% | 4.84% | -17.83% | 7.59% | -3.45% | 1.12% | 14.82% | 13.55% | 4.31% | 2.07% | 1.84% | -3.31% |
| Net Income Growth % | -399.39% | -182.19% | 1516.26% | 109.75% | -175.36% | 1204.14% | -233.86% | 390.43% | -447.16% | -91.17% | -1.5% | 175.44% | 85.75% | 30.18% | 179.9% | - |
| Net Income (Continuing) | -123.87M | -103.87M | 126.38M | 7.82M | -80.22M | 106.45M | -9.64M | 7.2M | -2.48M | 714.35K | 8.09M | 8.21M | 2.98M | 1.59M | 1.16M | -1.66M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.75M | 7.84M |
| EPS (Diluted) | -1.08 | -9.00 | 1.10 | 0.07 | -0.26 | 0.89 | -2.10 | 1.40 | -0.35 | -0.30 | 1.70 | 1.40 | 0.41 | 0.24 | 0.21 | -0.26 |
| EPS Growth % | -296.67% | -918.18% | 1541.79% | 125.77% | -129.21% | 142.38% | -250% | 500% | -16.67% | -117.65% | 21.43% | 241.46% | 70.83% | 14.29% | 180.77% | - |
| EPS (Basic) | - | -9.00 | 1.10 | 0.07 | -0.26 | 0.89 | -2.10 | 1.40 | -0.35 | -0.30 | 1.70 | 1.40 | 0.41 | 0.24 | 0.21 | -0.26 |
| Diluted Shares Outstanding | 114.86M | 11.49M | 115.1M | 116.57M | 116.6M | 116.6M | 102.13M | 101.19M | 101.19M | 101.19M | 101.19M | 101.19M | 101.19M | 86.56M | 80.34M | 80.34M |
| Basic Shares Outstanding | 114.86M | 11.49M | 115.07M | 115.25M | 115.5M | 116.6M | 100.5M | 101.19M | 101.19M | 101.19M | 101.19M | 101.19M | 101.19M | 86.56M | 80.34M | 80.34M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Operational capacity and engine constraints
As reported in recent financial statements, VLRS experienced a revenue growth trajectory that shifted from a 13.6% expansion in 2026Q1 to significant volatility, reflecting the challenges of maintaining consistent top-line momentum amidst seasonal demand fluctuations and the ongoing operational constraints impacting the company's available seat mile capacity.
The revenue profile appears increasingly sensitive to seasonal peaks, with recent quarters showing a contraction in year-over-year growth rates. This suggests that the company's ability to drive volume is currently hampered by fleet availability issues, potentially limiting the efficacy of its ultra-low-cost model in capturing additional market share.
Based on the provided income statement data, gross margins have deteriorated sharply, falling from a peak of 27.1% in 2023Q4 to a negative 0.3% in 2026Q1, indicating that the company is struggling to pass through rising operational costs to its price-sensitive customer base in the current environment.
The collapse in gross margins suggests that the cost-per-available-seat-mile advantage is being eroded by external factors, such as mandatory engine maintenance and inflationary pressures. Investors should monitor whether this margin compression is a temporary byproduct of fleet grounding or a more permanent shift in the competitive pricing landscape.
According to the company's quarterly filings, operating income has swung into negative territory, reaching a loss of $21.0 million in 2026Q1, which highlights the difficulty of scaling fixed costs when revenue growth fails to outpace the rising burden of maintenance and lease-related operational expenses.
The lack of positive operating leverage implies that the company's cost structure is currently too rigid to absorb the impact of grounded aircraft. This trend warrants further investigation into whether management can successfully decouple operating expenses from fleet utilization rates to restore profitability in future periods.
Financial data indicates that the company's net income has turned negative, with a net margin of -9.2% in 2026Q1, raising concerns among analysts regarding the long-term sustainability of the current ultra-low-cost model when faced with persistent, non-discretionary maintenance costs and high sensitivity to USD-denominated debt obligations.
Short-term volatility in net income, exacerbated by foreign exchange revaluations, suggests that the company's bottom line remains highly vulnerable to macroeconomic shifts. The persistent losses may indicate that the competitive moat is being tested by the inability to maintain pricing power while simultaneously managing a complex, capital-intensive fleet.
Quick answers to the most common questions about buying VLRS stock.
For fiscal year 2025, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) reported total revenue of $3.04B. This represents a 6406.5% increase compared to $46.7M in 2011.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) reported a net loss of $103.9M for the fiscal year ending 2025.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) reported an operating income of $98.9M, resulting in an operating profit margin of 3.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) generated $173.8M in gross profit for the year, representing a gross profit margin of 5.7%. This demonstrates the company's core pricing power and production efficiency.