The Mexican carrier Grupo Aeromexico is nearly back to its pre-pandemic traffic levels, as it posted a 95% recovery during November. Aeromexico is trailing behind Viva Aerobus and Volaris, two low-cost airlines that are already exceeding their 2019 levels, both in terms of passengers and profit. Let’s investigate further.
Closing the year strongly
Compared to its low-cost peers, Aeromexico has struggled to bounce back from the COVID-19 pandemic. The airline has slowly been able to recover the traffic levels it had in 2019. Nonetheless, it has done so, while other airlines across the world are still struggling and feeling the negative impact of the current crisis.
In November 2021, Aeromexico carried 1.5 million passengers across its domestic and international routes. The airline recovered 95% of the traffic numbers it had during the same month in 2019.
Moreover, Aeromexico had a 2.2% increase in the domestic traffic levels, carrying 1.14 million passengers on national routes versus the 1.12 million travelers in November 2019.
The international market remains behind, though. During November, Aeromexico still had a 20.2% decrease in this segment. Aeromexico hasn’t recovered a few international routes it had prior to the crisis, like Mexico City-Barcelona and Mexico City-London. Nonetheless, it has expanded its transatlantic reach by launching routes from Guadalajara and Monterrey to Madrid.
Is Aeromexico close to exiting Chapter 11?
Last week, a group of unsecured creditors filed an objection against Aeromexico’s Exit Financing process in its Chapter 11 bankruptcy. They stated that Delta Air Lines, Apollo, and other investors had received an unfair advantage and treatment to participate in the financing process.
After days of negotiations, things have gone through. According to local reports, the judge overseeing Aeromexico’s Chapter 11 approved the airline’s exit financing motion after a settlement agreement between the involved parties.
Additionally, the Judge set a schedule to confirm Aeromexico’s plan. The airline could have its Reorganization Plan approved by January 21, 2022. Aeromexico could exit Chapter 11 shortly after joining Avianca as the second Latin America carrier restructured. LATAM is still in the process and facing pressure from creditors, as reported by Bloomberg.
Mexico, the success story in the Americas: IATA
The International Air Transport Association said Mexico has been the success story in the Americas during 2021.
Mexico has recovered its pre-pandemic capacity and demand figures due to never closing its borders. As of November 2021, its international air connectivity is 10% higher than pre-crisis levels, said Peter Cerdá, regional vice president at IATA in the Americas.
However, the country does have a few challenges ahead for 2022. IATA urged Mexico to recover Category 1 status with the Federal Aviation Administration (FAA) as soon as possible.
Moreover, IATA stated that airlines should be free to decide which of the three airports serving Mexico City they want to operate from, based on commercial and operational requirements. Next year, Mexico will open a new airport that will work collaboratively with Mexico City International Airport (MEX) and Toluca International Airport. Only two carriers, Volaris and Viva Aerobus, have announced domestic routes from the new airport. Aeromexico will remain at MEX, though.
Have you traveled with Aeromexico lately? How was your experience? Let us know in the comments below.