Merger Agreement: Volaris and Viva have entered into an agreement to form a new airline group in 2026, aimed at expanding low-fare travel accessibility in Mexico and internationally, which is expected to significantly enhance the market competitiveness of both airlines.
Economies of Scale: The new group will realize economies of scale through lowered fleet ownership costs and improved access to capital, thereby strengthening its financial profile and supporting sustainable growth while reducing operational costs.
Passenger Choice Preservation: Post-merger, Volaris and Viva will continue to operate independently, retaining existing routes and brands, ensuring that passenger choices remain intact while enhancing the convenience of point-to-point travel.
Community and Economic Development: The establishment of the new airline group is expected to create between 55 and 60 direct jobs per new service aircraft, while also driving economic development and tourism growth across Mexico through increased flights and new operational bases.
VLRS
$8.32+Infinity%1D
Analyst Views on VLRS
Wall Street analysts forecast VLRS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VLRS is 8.70 USD with a low forecast of 7.00 USD and a high forecast of 12.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
Wall Street analysts forecast VLRS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VLRS is 8.70 USD with a low forecast of 7.00 USD and a high forecast of 12.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 7.950
Low
7.00
Averages
8.70
High
12.00
Current: 7.950
Low
7.00
Averages
8.70
High
12.00
Barclays
Equal Weight
maintain
$7 -> $9
2025-12-18
New
Reason
Barclays
Price Target
$7 -> $9
2025-12-18
New
maintain
Equal Weight
Reason
Barclays raised the firm's price target on Volaris to $9 from $7 and keeps an Equal Weight rating on the shares. The firm cites the company's easier compares in the first half of 2026 and a more favorable outlook for U.S.-Mexico travel for the target increase.
TD Cowen
Tom Fitzgerald
Buy
maintain
$7 -> $8
2025-10-21
Reason
TD Cowen
Tom Fitzgerald
Price Target
$7 -> $8
2025-10-21
maintain
Buy
Reason
TD Cowen analyst Tom Fitzgerald raised the firm's price target on Volaris to $8 from $7 and keeps a Buy rating on the shares. The firm previewed its Q3 results and said they are cautiously optimistic on the set-up as checks indicate demand remains stable, supply in Mexico's domestic market looks rational, and FX favorable.
JPMorgan
NULL -> Overweight
upgrade
$8 -> $10
2025-10-15
Reason
JPMorgan
Price Target
$8 -> $10
2025-10-15
upgrade
NULL -> Overweight
Reason
JPMorgan raised the firm's price target on Volaris to $10 from $8 and keeps an Overweight rating on the shares.
JPMorgan
NULL -> Overweight
maintain
$8
2025-10-15
Reason
JPMorgan
Price Target
$8
2025-10-15
maintain
NULL -> Overweight
Reason
JPMorgan raised the firm's price target on Volaris to $9.50 from $8 and keeps an Overweight rating on the shares.
About VLRS
Controladora Vuela Compania de Aviacion SAB de CV is a Mexico-based company engaged in the airline passenger transportation sector. The Company operates as an ultra-low-cost carrier (ULCC). Its activities are divided into two geographical regions: Mexico (national operations), as well as the Unites States and Central America (international operations). The Company offers direct, point-to-point flights. The Company serves through secondary, lower cost airports and provides a single class of service. Its fleet includes a number of Airbus aircrafts, such as A319, A320 and A321. The Company operates through Comercializadora Volaris SA de CV, Servicios Corporativos Volaris SA de CV and Servicios Operativos Terrestres Volaris SA de CV, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
