Shares of Controladora Vuela Compania de Aviacion SAB de CV (VLRS), also known as Volaris, are soaring 5.18% in Tuesday's trading session following the release of its better-than-expected third-quarter earnings report. The Mexican ultra-low-cost carrier surprised investors by posting a profit when analysts were anticipating a loss.

For the quarter ended September 30, Volaris reported adjusted earnings of 10 cents per share, significantly outperforming the mean expectation of eight analysts who had forecast a loss of 6 cents per share. This positive surprise comes despite ongoing challenges in the airline industry and represents a notable achievement for the company, even though it's lower than the 32 cents per share reported in the same quarter last year.

While revenue slightly missed expectations, coming in at $784 million compared to the anticipated $789.10 million, the 3.6% year-over-year decline was less severe than feared. The earnings beat and resilient revenue performance appear to be driving investor optimism, helping to reverse some of the stock's recent losses. Prior to this surge, Volaris shares had fallen 4.6% this quarter and were down 7.9% year-to-date. The positive reception to these results suggests that investors see potential for a turnaround in the company's fortunes. Adding to the bullish sentiment, Wall Street maintains an overall "buy" rating on the stock, with a median 12-month price target of $8.00, representing an 11.9% upside from its last closing price.