Aeromexico Reports 2Q19 Results

MEXICO CITY, July 16, 2019 /PRNewswire/ -- Grupo Aeromexico S.A.B. de C.V. ("Aeromexico") (BMV: AEROMEX), today reported its unaudited consolidated results for the second quarter 2019.

KEY FINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER 2019

• Grupo Aeromexico's second quarter capacity, measured in available seat kilometers (ASKs) decreased by 2.2% year-on-year, resulting from planned capacity reductions as well as the temporary grounding of the 737 MAX 8 aircraft. The Company is continuing to assess the financial impact of both the grounding of the 737 MAX aircraft in its fleet and the current and expected future delays in delivery of additional 737 MAX aircraft. The Company intends to seek compensation for the financial consequences of these events, and potentially other remedies, and will inform the markets once it is appropriate to do so regarding financial impacts and expectations, and the Company's remedial actions. The date for re-entry of the 737 MAX to service remains uncertain.
  
  
• Grupo Aeromexico's second quarter 2019 revenue reached $16.8 billion pesos, a 2.6% year-on-year decrease. During the quarter Revenue per ASK (RASK) decreased by 0.4% compared to the same period of 2018.
  
  
• During the quarter CASK excluding fuel in pesos decreased by 1.8% while CASK excluding fuel in dollars decreased 0.3%, highlighting Grupo Aeromexico´s ongoing focus on optimizing unit costs.
  
  
• Second quarter EBITDAR reached $3.1 billion pesos. EBITDAR margin was 18.3%.
  
  
• For the second quarter of 2019, Grupo Aeromexico reported an operating profit of $119 million pesos, for a 0.7% operating margin.
  
  
• Aeromexico reported a net loss of $1.1 billion pesos for the second quarter 2019.
  
  
• Second quarter cash flow generation was strong with $3.7 billion pesos in incremental cash flow generated from operating activities. Aeromexico´s cash position as of June 30^th, 2019 was $10.2 billion pesos. This brings Aeromexico´s cash to last-twelve-month revenue ratio to 14.6%.
  
  
• During the quarter, the Company incorporated one aircraft into its fleet. As of June 30^th, 2019 Grupo, Aeromexico's operating fleet comprised 122 aircraft, excluding the six Boeing 737 MAX aircraft temporarily grounded.

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

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 90 cities on three continents, including 43 destinations in Mexico, 21 in the United States and Canada, 16 in South America, Central America and the Caribbean, 5 in Europe, and 3 in Asia.

The Group's operating fleet of 122 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 Boeing 737 MAX jet airliners and 10 B787-9 Dreamliner's.

As a founding member of the SkyTeam airline alliance, Aeromexico offers customers more than 1,000 destinations in 179 countries served by the 20 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.

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