Aeromexico
- IATA/ICAO Code
- AM/AMX
- Airline Type
- Full Service Carrier
- Hub(s)
- Mexico City International Airport
- Year Founded
- 1934
- Alliance
- SkyTeam
- Airline Group
- Grupo Aeromexico
- CEO
- Andrés Conesa Labastida
- Country
- Mexico
The Mexican carrier Aeromexico posted a US$198 million net loss in the first half of 2022 due to the ongoing impact of the COVID-19 pandemic, the airline’s Chapter 11 bankruptcy proceeding, the economic uncertainty, and the rise in expense prices, mainly fuel prices.
Aeromexico’s latest results
Grupo Aeromexico had total revenue of 32 billion pesos during the first half of 2022 (around US$1.5 billion). The Mexican airline has wholly restored its revenue levels to the pre-pandemic levels (in 2019, Aeromexico had 33.1 billion pesos in revenue.
The airline’s EBITDAR is also back to pre-pandemic traffic levels, showing the Mexican travel market and demand have recovered swiftly from the crisis.
Nonetheless, due to the impact of the ongoing economic crisis, Aeromexico posted a 4.0 billion pesos net loss during the half (around US$198 million).
The market conditions Aeromexico faced during the quarter included a 109% increase in the average fuel cost per liter, from an average of 10.59 pesos per liter last year to 22.17 pesos in 2022. Additionally, annual inflation as of June was 7.99% in Mexico, an increase of 2.11 pp compared to the same period in 2021.
The Mexican airline has completely restored its revenue back to the pre-pandemic levels. Photo: Getty Images.
Aeromexico’s capacity recovery
Overall, the Mexican airline industry has been recovering fast from the COVID-19 pandemic. In June, the three major airlines in the country posted traffic numbers above 2019 levels. Aeromexico carried nearly 2 million passengers that month, an 11% increase compared to June 2019.
During 2022’s first half, Aeromexico carried 9.69 million passengers, a 94% recovery compared to 2019 levels, due to a slow start at the beginning of the year. It is very likely Aeromexico will close the year with a full recovery and even a minimal growth in terms of carried passengers.
More importantly, Grupo Aeromexico’s corporate passenger recovery was above 90% of 2019 levels.
As of June 30, 2022, the airline’s cash position amounted to 17.8 billion pesos, equivalent to US$883 million.
Aeromexico lost about US$200 million in 2022’s first half. Photo: Getty Images.
Aeromexico post Chapter 11
Aeromexico emerged from Chapter 11 in March after around 20 months of operating under a financial restructuring process.
Since then, the legacy carrier has launched several new routes, including a few from Mexico City’s new Felipe Ángeles International Airport, received new aircraft, and fully acquired its Club Premier loyalty program.
At the end of 2022’s second quarter, Aeromexico’s fleet was composed of 140 aircraft, the most it has had throughout its history. During the quarter, it received six Boeing 737 MAX jetliners, and Aeromexico is no longer listed on Boeing’s unfilled orders in the Americas.
Aeromexico’s fleet is composed of 18 Boeing 787 Dreamliners, one 737-700 (marking the end of Aeromexico’s history with this model), 36 B737-800s, 31 737 MAX 8s, 12 737 MAX 9s, and 42 Embraer E190.
It is the first time in its history Aeromexico has more 737 MAX aircraft than 737 NGs.
Going forward, Aeromexico will have to face a few uncertainties, including challenges such as a possible economic recession, Mexico’s Category 2 status (downgraded by the Federal Aviation Administration), the future of Mexico City’s Benito Juárez International, and the high prices impacting the travel industry as a whole.
Have you traveled recently with Aeromexico? How was the experience? Let us know in the comments below.
