GRPAF - Volaris: Avoid This Mexican Ultra-Low-Cost Airline
Volaris (VLRS) is an ultra-low-cost airline, which has been steadily gaining market share in Mexico in the last decade and successfully competing with the country's flag carrier Aeromexico (GRPAF). Before the pandemic, the airline was expecting to have a double-digit growth of its revenues in 2020. However, the spread of COVID-19 all around the globe disrupted the airline's operations, and its growth prospects right now look dim. With only $453 million in cash reserves and ~$2.3 billion in debt, we believe that the airline is uninvestable at this point, even though its stock