Vail Resorts Counts the Cost of a Thin Winter as Pass Sales Slide Further

Vail Resorts lost nearly half its net income last winter, and the pass-sales hangover has not cleared.

Vail Resorts reported its fiscal 2026 results on Monday 28 September. Net income attributable to the company fell from $280 million to $147.5 million, and skier visits dropped 13.4 per cent to 15.3 million. Vail said snowfall and snowpack across the western United States were at or near historic lows, with the Rockies hit particularly hard. The company also said pass product unit sales for 2026-27 were down about 12 per cent through 18 September.

A Thin Winter, A Smaller Profit

Resort net revenue fell $131.9 million, or 4.5 per cent, to $2.83 billion. Mountain net revenue declined 4.8 per cent to $2.50 billion, and Resort Reported EBITDA fell 11.7 per cent, from $844.1 million to $745.7 million. Vail said the weather cut visitation and spending among local and destination guests, with the biggest effects at its Rocky Mountain and Lake Tahoe resorts. Food and beverage, retail, rental and ski school revenue all felt the pressure as fewer guests turned up.

Lift revenue fell only 3.5 per cent despite the 13.4 per cent drop in visits. Vail credited a 3.9 per cent rise in pass revenue and higher pricing, with effective ticket price up 11.5 per cent to $94.85. Cost control helped too, including about $45 million in resource-efficiency savings and lower performance-based management incentives. Against that, the company spent an extra $20 million on marketing aimed at pass sales, lift ticket initiatives and branding.

The fourth quarter was a little better than the year as a whole. Resort net revenue rose 0.3 per cent and Resort Reported EBITDA rose 1.0 per cent, even though snowfall at Vail's Australian resorts was about 57 per cent below the 10-year average during the quarter.

Pass Sales Have Slipped Further

The bigger question is the coming season. Through 18 September, pass product units were down about 12 per cent on the same point last year, estimated pass days sold were down 10 per cent, and sales dollars, including taxes, were down 6 per cent. That is a step backwards from the spring update, when units were down about 10 per cent, days sold 8 per cent and dollars 5 per cent through 26 May.

The weakness is concentrated in destination products aimed at lower-frequency skiers, particularly passes with a smaller number of ski days. Unlimited products have held up better, and local customers in Colorado and Utah showed modest improvement after the May deadline. In June, Vail said demand was softest among destination guests who normally travel to its Rocky Mountain resorts, while the East and Whistler Blackcomb were stronger.

Vail believes some of the destination weakness is delayed buying rather than lost demand. Those customers could still buy a pass later in the selling cycle or pick up lift tickets during the season. Dollars falling less sharply than units also points to a shift towards higher-value products, which fits with unlimited passes outperforming.

Vail's Forecast for Fiscal 2027

Assuming normal weather, Vail expects Resort Reported EBITDA of $805 million to $865 million in fiscal 2027, compared with $745.7 million in fiscal 2026. Net income is forecast at $158 million to $233 million. Even the top of that range sits below last year's $280 million.

The company expects the improvement to come from more lift ticket visitation, pricing growth, higher guest spending and about $25 million in extra cost efficiencies. Its resource-efficiency program is meant to deliver about $110 million in annualised savings by the end of fiscal 2027. The final pass sales picture will not be clear until later in the selling season.

Park City Gets More New Lifts

Vail is still spending on its mountains. Several lift projects are planned at Park City Mountain for 2027-28. The Silverlode Express will be replaced with an eight-passenger detachable chairlift, the first of its kind in Vail's US network. The Eagle and Eaglet lifts will be replaced with a six-passenger detachable chairlift with a revised alignment and a mid-station unload, and the Crescent lift will be retrofitted.

These projects follow the Sunrise Gondola, the Canyons Village Skyway Gondola and a new parking structure. Vail says it will have invested more than $200 million at Park City since acquiring the resort by the end of 2026.