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May 21, 2024
Aeromexico Plans to Return to Capital Markets Next Year

Photo: Daniel Martínez Garbuno.

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Mexico’s flag carrier airline, Aeromexico, has announced its plans to return to the capital markets between the second half of 2023 and the first quarter of 2024. This move would bring the airline back to trading in Mexico and the United States after delisting from the Mexican Stock Exchange (BMV) at the end of 2022 as part of its Chapter 11 restructuring.

Back to the capital markets

Andrés Conesa, CEO of Aeroméxico, spoke at a press conference during the Tianguis Turístico 2023 in Mexico City, stating, “Access to financing is important, fundamental for the company and the airline; the more sources of financing you have, the better.” Conesa also mentioned that the airline is still analyzing whether to list on the Nasdaq or the New York Stock Exchange (NYSE), both of which were included as options in its restructuring plan.

Aeromexico’s delisting from the BMV was a requirement of its new shareholders after restructuring under the Chapter 11 process of the US Bankruptcy Code, which concluded in March 2022. This move allowed the airline to weather the crisis caused by the COVID-19 pandemic.

Aeromexico’s financial results in 2022

The Mexican airline reported the financial results for the first three quarters of last year. During that period, the airline posted total revenue of 53.4 billion Mexican pesos (or about US$2.9 billion at today’s exchange rate). The EBITDAR for the company was 10.78 billion pesos, and the airline posted a consolidated net loss of 3.83 billion pesos, a 58.5% reduction compared to the same period in 2021. 

As of September 30, 2022, Aeromexico’s cash position amounted to 15.4 billion pesos, equivalent to approximately US$759 million. Excluding restricted cash, the airline’s cash balance was equivalent to $725 million. 

Last year, Aeromexico fully rebounded from the COVID-19 pandemic in terms of passenger numbers, carrying 21.48 million passengers, a slight increase compared to the 20.56 million moved in 2019, prior to the global health emergency. 

Nonetheless, it is unlikely the airline posted a positive net result at the end of the year. As Volaris and Viva Aerobus, the airline faced economic uncertainty, rising fuel prices, and other challenges impacting its bottom line. Of the three leading Mexican carriers, only Viva Aerobus posted a minimal net profit last year. 

Fleet and loyalty program plans

Andrés Conesa addressed the plans for Aeromexico’s fleet in 2023 (it closed with 144 aircraft). The company expects to close the year with 20 Boeing 787 Dreamliners and 55 Boeing 737 MAX aircraft, plus an untold number of Boeing 737-800s and Embraer E190s. Aeromexico’s fleet will be 25% larger at the end of the year versus 2019. 

Finally, the airline announced the rebranding of its Club Premier loyalty program. It will now be called Aeroméxico Rewards, and, following the steps of Delta Air Lines, accumulated points will no longer have an expiration date. Additionally, the cost of points to redeem a flight to Mexico, the United States, and Canada will drop by 25%. 

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Daniel Martínez Garbuno
Daniel Martínez Garbuno is a Mexican journalist. He has specialized in the air industry working mainly for A21, a Mexican media outlet focused entirely on the aviation world. He has also published on other sites like Simple Flying, Roads & Kingdoms, Proceso, El Economista, Buzos de la Noticia, Contenido, and Notimex.

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