Volaris Stock Falls to Its Lowest in Five YearsBy Alicia Arizpe | Mon, 03/23/2020 - 12:36
As the COVID-19 pandemic rages across the globe, governments have moved to contain the disease by urging citizens to avoid any unnecessary traveling and, in some cases, by closing their borders. These measures, alongside the general panic caused by the disease, have directly impacted international aviation. Mexico is no exception. Among those hurt by the pandemic is low-cost airline Volaris, that despite several containment measures has seen its stock crashing down.
Before the outbreak, Volaris was showing impressive growth. During the first two months of 2020, the airline reported double-digit growth in passengers compared to the previous year, with a 15.9 percent increase in national passengers and a 22.6 percent in international travel. The airline’s stock rose to its highest price in a year hitting MX$24.9 (US$1) on Feb. 20, 2020.
Things took a sharp turn for the worse as COVID-19 cases rose in the US, one of Volaris strongest markets. By the time the first case was confirmed in Mexico on Feb. 28, the airline’s stock had fallen to MX$20.1. From that point on, it has dropped sharply to an all-time low of MX$7.8 on March 18, its lowest point in five years.
The airline is taking measures to contain the virus and its impact. For instance, on March 20, Volaris announced that it would ban passengers that had traveled to and from any of the 30 countries affected by the disease over the previous 14 days. It also informed that it would ramp up its sanitation measures. Furthermore, the airline assured passengers that its fleet had high-efficiency particulate air (HEPA) filters that block out 99.9 percent of small air particles, including virus and bacteria.