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Aeromexico Reports 4Q19 Results

MEXICO CITY, Feb. 11, 2020 /PRNewswire/ -- Grupo Aeromexico S.A.B. de C.V. ("Aeromexico") (BMV: AEROMEX), today reported its unaudited consolidated results for the fourth quarter 2019.

KEY FINANCIAL HIGHLIGHTS FOR THE FOURTH QUARTER 2019

  • Grupo Aeromexico's fourth quarter capacity, measured in available seat kilometers (ASKs) decreased by 4.9% year-on-year, resulting from the temporary grounding of the 737 MAX aircraft.
  • During the quarter Aeromexico reached a partial confidential compensation agreement with Boeing to mitigate the financial impact arising from the temporary grounding of the airline's Boeing 737 MAX aircraft. The reported financial results reflect certain elements of this agreement. Other elements under the agreement will be accounted for in future years as a reduction in the cost of aircraft, which is expected to decrease depreciation expense.
  • Grupo Aeromexico's fourth quarter 2019 revenue reached $17.2 billion pesos, a 6.7% year-on-year decrease. During the quarter Revenue per ASK (RASK) in dollars increased by 0.9% and yield in dollars increased by 1.2% compared to the same period of 2018.
  • Year-on-year Cost per ASK (CASK) in dollars decreased by 8.4% and CASK excluding fuel in dollars decreased 8.2%, highlighting Grupo Aeromexico´s ongoing focus on optimizing unit costs.
  • Fourth quarter EBITDAR reached $4.7 billion pesos, an increase of $2.3 billion pesos year-on-year. EBITDAR margin was 27.2%.
  • For the fourth quarter of 2019, Grupo Aeromexico reported an operating profit of $1.7 billion pesos, equating to a 10.1% operating margin. This is a $2.7 billion peso year-on-year improvement compared to the same period of 2018.
  • Aeromexico reported a net loss of $57 million pesos for the fourth quarter 2019 for a negative net margin of 0.3%.
  • For full year 2019, Grupo Aeromexico revenue reached $68.8 billion pesos, a 2.1% year-on-year decrease compared to the same period of 2018. Grupo Aeromexico delivered an operating profit of $2.8 billion pesos, equating to 4.0% operating margin. The Company reported a net loss of $2.4 billion pesos.
  • Fourth quarter cash flow generation was positive with $4.3 billion pesos in incremental cash flow generated from operating activities. Aeromexico´s cash position as of December 31st, 2019 was $9.1 billion pesos. This brings Aeromexico´s cash to last-twelve-month revenue ratio to 13.2%.
  • During the quarter, the Company received four aircraft: one Boeing 787-9 and three Boeing 737-800s. As of December 31st, 2019 Grupo Aeromexico's operating fleet comprised 125 aircraft, excluding the six Boeing 737 MAX aircraft temporarily grounded. Boeing has expressed that it expects the aircraft to be re-certified by the Federal Aviation Administration (FAA) during summer 2020.

All figures are expressed in millions of pesos unless otherwise indicated. Grupo Aeromexico's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). The International Accounting Standard 1 (IAS 1) "Presentation of Financial Statements" establishes that in the Consolidated Statement of Comprehensive Income additional items, headings and subtotals can be presented when they are relevant to understanding the financial performance of the entity.

To access the full text of this earnings release, please visit Aeromexico's Investor Relations website at:   https://aeromexico.com/en-us/investors.

CONFERENCE CALL DETAILS

DATE:

Grupo Aeromexico will hold its 4Q19 results call on Wednesday, February 12, 2020.



TIME:

11:00 am ET/10:00 am Mexico City & Central Time



SPEAKERS:

Andrés Conesa Labastida, CEO


Ricardo Sánchez Baker, CFO


Nicolas Ferri, Chief Commercial Officer


To participate in the conference call, please dial:



Toll Free US

+1 877-407-9124

Toll International

+1 201-689-8584



Registration is required; please dial in at least ten minutes prior to the scheduled start time.



The conference call will be available for replay until March 12, 2020 at 11:00 am ET:



Toll Free US

+1 877-481-4010

Toll International

+1 919-882-2331



Replay Conference ID Number: 58150

The conference call replay can also be accessed via Grupo Aeromexico's Investor Relations website: https://aeromexico.com/en-us/investors.

Safe Harbor Statement

This release contains forward-looking statements regarding the Company's results and business prospects. The readers should know that the results obtained may differ from that stated on this release. Past performances do not guarantee the behavior of future performances. The Company undertakes no obligation to update any of these statements, either as a result of new information, future actions or other related events. 

About Grupo Aeromexico

Grupo Aeromexico, S.A.B. de C.V. is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. Aeromexico, Mexico´s global airline, operates more than 600 daily flights and its main hub is in Terminal 2 at the Mexico City International Airport. Its destinations network features more than 80 cities on three continents, including 42 destinations in Mexico, 18 in the United States, 15 in Latin America, 4 in Canada, 5 in Europe and 2 in Asia.

The Group's operating fleet of 125 aircraft is comprised of Boeing 787 and 737 jet airliners and next generation Embraer 170 and 190 models. In 2012, the airline announced the most significant investment strategy in aviation history in Mexico, to purchase up to 100 Boeing aircraft including 90 MAX B737 jet airliners and 10 B787-9 Dreamliners.

As a founding member of the SkyTeam airline alliance, Aeromexico offers customers more than 1,000 destinations in 179 countries served by the 19 SkyTeam airline partners rewarding passengers with benefits including access to 636 premium airport lounges around the world. Aeromexico also offers travel on its codeshare partner flights with Delta Air Lines, Air France-KLM, Avianca, Copa Airlines and WestJet, with extensive connectivity in countries like the United States, Brazil, Canada, Colombia and Peru.

www.aeromexico.com
www.skyteam.com 

 

Cision

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SOURCE Grupo Aeromexico S.A.B. de C.V.