Aeromexico Announces Third Quarter Profits
Aeromexico (AM) has announced a return to profitability, rebounding after emerging from Chapter 11 Bankruptcy.
Aeromexico (AM) has announced a return to profitability, rebounding after emerging from Chapter 11 Bankruptcy.
DALLAS - Grupo Aeromexico, the parent of Mexican carrier Aeromexico (AM), has announced a return to profitability in the third quarter of 2022.
The company reported a third-quarter profit of Ps210m (US$10.5m) from July to September, traditionally Mexico's high season. This compares to a loss of Ps2.2bn (US$110m). Revenue of Ps21.4bn (US$1.07bn) was also reported, up 62% in the same period last year.
According to Grupo Aeromexico, around 47% of AM's revenue came from international passenger tickets. Approximately 32% came from domestic transportation; the rest comprised cargo operations and charter flights.
During this period, AM carried some 5.89 million passengers, giving a load factor of 84%. This was up by 11.5% compared to the same period last year. So far, the airline has carried 15.58 million passengers in 2022, with a load factor of 81%.
The turnaround comes as the airline faces stiff competition, especially on the domestic front where ultra-low-cost carriers (ULCCs) such as Viva Aerobus (VB) and Volaris (Y4) have eroded Aeromexico's market.
Indeed, the Latin American airline sector as a whole has seen a decent recovery. According to the ALTA trade group, the region's carriers have now reached 92.3% of their pre-pandemic capacity.
AM emerged from Chapter 11 bankruptcy protection back in March after 21 months. It was one of several Latin American carriers to enter bankruptcy protection as a way to survive the global pandemic.
Featured Image: AM Boeing 737-800 (XA-AMS). Photo: Miles Aronovitz/Airways
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