Volaris price target lowered to $12 from $13 at Citi

Citi lowered the firm’s price target on Volaris to $12 from $13 and keeps a Buy rating on the shares. The company’s capacity is likely to fall significantly this year but n spite of this decline, its operational margins and profitability should improve versus 2023, the analyst tells investors in a research note. The firm says that while GTF engine-related groundings increase, Volaris should shift capacity onto more lucrative, U.S.-bound routes. This combination should boost the carrier’s unit revenue, according to Citi.