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Volaris shares gain with increased passenger demand

Mexico City, Mexico — Shares of the Mexican low-cost carrier Volaris rose to levels not seen in four and a half years. On Thursday, Volaris gained 1.75 percent to 35.95 peso, their best level since October 2016.

The increase came after the airline raised its financial targets amid better sales performance.

“Without a doubt this news continues to support a more favorable outlook regarding better-than-expected demand,” 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 the ravages of the coronavirus that undermined passenger demand, raised its target for the second quarter citing better sales performance in recent weeks in both the domestic and international markets.

Capacity for the second quarter, measured in available seat miles, is now projected at up to 113 percent for the same period of 2019, against a previous estimate of 110 percent the company reported.