Aeromexico Announces Third Quarter Profits

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.

AM has expanded its fleet by 19 aircraft since the third quarter of 2021. Photo: Daniel Gorun/Airways

Improving Numbers

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%.

Aeromexico Connect (5D) offers connections to AM's major hubs. Photo: Luke Ayers/Airways

Latin American Turnaround

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