Vail Resorts Profit Nearly Halves as Pass Sales Fall 12%

Vail Resorts’ pass sales and overall results, reported yesterday, reflected a difficult fiscal 2026, with annual profit nearly cut in half and skier visits down 13.4%. But the company finished the year with a modest improvement in its fourth quarter, suggesting the worst of the weather-driven financial damage may have passed.

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For the full fiscal year, Vail reported $147.5 million in net income, down from $280 million a year earlier. Resort Reported EBITDA fell 11.7% to $745.7 million.

The results reflect one of the most challenging winters in the company’s history. Vail said snowfall and snowpack across the western United States were at or near historic lows, with the Rockies particularly hard hit.

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Vail Resorts’ total skier visits fell 13.4% to 15.3 million.

Q4 Shows Signs of Improvement

The fourth quarter looked considerably better than the full-year numbers. Resort net revenue increased 0.3% in Q4, while Resort Reported EBITDA rose 1.0%.

The improvement came despite continued weather challenges. Vail said snowfall at its Australian resorts was approximately 57% below the 10-year average during the quarter.

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For the full year, resort net revenue fell 4.5% to $2.83 billion. Mountain net revenue declined 4.8% to $2.50 billion. Lift revenue fell 3.5% for the year, despite skier visits dropping 13.4%. Vail said the decline was partially offset by a 3.9% increase in pass revenue and higher pricing. Effective ticket price increased 11.5% to $94.85.

Vail Resorts’ Pass Sales Down 12%

The bigger concern for Vail now is the upcoming 2026-27 season. Pass product unit sales were down approximately 12% through September 18 compared with the same period a year earlier. Pass days sold were down 10%, while sales dollars, including taxes, were down 6%.

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The weakness was concentrated in destination products aimed at lower-frequency skiers. Unlimited products performed relatively better, while Vail said local markets in Colorado and Utah showed modest improvement.

Vail believes some of the decline could reflect delayed purchasing rather than permanently lost demand. The company is also spending more to rebuild demand, with marketing expenses increasing by approximately $20 million during fiscal 2026.

Wider Resort Spending Declined

The drop in visitation affected more than lift tickets. Vail reported pressure across other resort businesses, including food and beverage, retail, rental, and ski and snowboard school revenue, as fewer guests visited its mountains.

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Higher prices and increased guest spending helped offset some of the decline, but overall resort revenue still fell for the year.

Vail also reduced costs, including approximately $45 million in resource-efficiency savings and lower performance-based management incentive expenses.

Vail Forecasts a Rebound

Vail expects fiscal 2027 to improve significantly, assuming normal weather.

The company forecasts Resort Reported EBITDA of $805 million to $865 million, compared with $745.7 million in fiscal 2026. Net income is expected to reach $158 million to $233 million.

Vail expects the improvement to come from increased lift-ticket visitation, pricing growth, higher guest spending, and approximately $25 million in additional cost efficiencies.

Its resource-efficiency program is expected to deliver approximately $110 million in annualized savings by the end of fiscal 2027.

Park City Gets More New Lifts

Vail is continuing to invest heavily in its resorts, with several major lift projects planned at Park City Mountain for the 2027-28 season. The company will replace the Silverlode Express with the first eight-passenger detachable chairlift in Vail Resorts’ U.S. network. The Eagle and Eaglet lifts will also be replaced with a six-passenger detachable chairlift featuring a revised alignment and mid-station unload. Vail will also retrofit the Crescent lift. The projects follow the new Sunrise Gondola, Canyons Village Skyway Gondola, and parking structure investments. Vail says it will have invested more than $200 million at Park City since acquiring the resort by the end of 2026.

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For Vail Resorts, the next year will be about whether better snow can translate into stronger visitation, pass sales, and spending across its resorts after one of the toughest winters in company history.