Core Viewpoint - Grupo Aeroméxico's Board of Directors and executive management have demonstrated confidence in the company's long-term strategy by purchasing a total of 1,032,120 common shares, equivalent to 103,212 American Depositary Shares (ADSs) in the open market [1][2] Company Overview - Grupo Aeroméxico, S.A.B. de C.V. operates in commercial aviation and promotes passenger loyalty programs, with its main operations based in Terminal 2 of Mexico City International Airport [2] - The airline serves a wide network of destinations across Mexico, the United States, Canada, Central America, South America, Asia, and Europe, and operates a fleet that includes Boeing 787 and 737 aircraft, as well as Embraer 190 [2] - Aeroméxico is a founding member of the SkyTeam alliance, which connects over 170 countries through 19 partner airlines [2]

Core Viewpoint - Grupo Aeroméxico shows a mixed operational performance in February 2026, with a slight overall decrease in passenger numbers but an increase in international traffic, indicating a recovery in international markets [1][3]. Passenger Traffic - In February 2026, Aeroméxico transported 1,744 thousand passengers, reflecting a 1.2% year-over-year decrease. Domestic passengers decreased by 3.0% to 1,159 thousand, while international passengers increased by 2.7% to 584 thousand [3]. - Cumulatively, from January to February 2026, total passengers reached 3,797 thousand, down 1.5% from the same period in 2025 [1][3]. Capacity (ASMs) - The total capacity, measured in available seat miles (ASMs), decreased by 2.2% year-over-year to 2,595 million in February 2026. Domestic ASMs decreased by 3.6% to 800 million, while international ASMs decreased by 1.6% to 1,795 million [3]. - Cumulatively, ASMs for the first two months of 2026 totaled 5,598 million, down 2.2% compared to the same period in 2025 [1][3]. Demand (RPMs) - Demand, measured in revenue passenger miles (RPMs), increased by 1.2% year-over-year to 2,144 million in February 2026. International RPMs rose by 3.0% to 1,492 million, while domestic RPMs decreased by 2.6% to 652 million [3]. - Cumulatively, RPMs for January and February 2026 reached 4,758 million, an increase of 1.2% compared to the same period in 2025 [1][3]. Load Factor - The load factor for February 2026 was 82.7%, a 2.8 percentage point increase compared to February 2025. The domestic load factor increased by 0.9 percentage points to 81.5%, while the international load factor increased by 3.7 percentage points to 83.2% [3]. - Cumulatively, the load factor for the first two months of 2026 was 85.0%, up 2.9 percentage points from the same period in 2025 [1][3].

Core Insights - Aeroméxico is transforming its business class dining experience to reflect modern Mexican culture, emphasizing the importance of food as a means of connection and storytelling [1][3] Group 1: New Dining Experience - Aeroméxico has launched a bespoke dining and glassware collection for its Premier One service, created in collaboration with NewTerritory, to enhance the onboard dining experience [2][9] - The collection includes over 15 pieces designed to reflect Mexican heritage while improving the dining experience for passengers and crew [4][8] Group 2: Design and Materiality - The collection features porcelain pieces that reference traditional Mexican ceramics and blue-tinted glassware inspired by tequila bottle production, celebrating craft and cultural roots [5][6] - Lightweight materials and space-saving designs have been engineered to reduce weight and ease crew workload, supporting a more efficient service style [6][8] Group 3: Cultural Significance - The design philosophy is inspired by the Milpa, promoting harmony and informality, and reframing business class dining as a cultural moment rather than a transactional service [9] - The new collection will be rolled out across Aeroméxico's 787 fleet throughout 2026, marking a significant evolution for the airline as it enters its 91st year [3][9]

Core Viewpoint - Grupo Aeroméxico is in the process of restoring operations at several airports affected by recent events, with expectations to resume regular operations soon [1][2]. Group 1: Operational Updates - Operations at Guadalajara (GDL), Puerto Vallarta (PVR), Tepic (TPQ), and Manzanillo (ZLO) are progressively normalizing, with a full return to regular operations expected by the afternoon or the next day, depending on local conditions [2]. - The operational impact from these disruptions is not expected to be material to the overall operations of the company, as these stations represent a limited portion of its total network capacity [2]. Group 2: Company Overview - Grupo Aeroméxico is a holding company engaged in commercial aviation in Mexico and operates a loyalty program for passengers [3]. - The airline has a global reach, covering destinations in Mexico, the United States, Canada, Central America, South America, Asia, and Europe, with its main operations center located at Terminal 2 of Mexico City International Airport [3]. - The current operating fleet includes Boeing 787 and 737 aircraft, as well as the latest generation Embraer 190 [3]. - Aeroméxico is a founding partner of the SkyTeam alliance, which offers connectivity in over 170 countries through 19 partner airlines [3]. - The company has implemented a Health and Hygiene Management System (SGSH) to ensure safety for clients and collaborators throughout its operations [3].

Core Insights - Aeromexico achieved significant operational safety recognition from IATA, being the first airline in Latin America to reach this milestone [1] - The airline was named the world's most on-time airline for 2025 by Cirium, marking its second consecutive year at the top of the global ranking [2] - Aeromexico reported a strong recovery in demand during the fourth quarter of 2025, attributed to higher load factors and improved unit revenues [3][4] Operational Performance - Aeromexico transported approximately 25 million passengers in 2025 and ended the year with 165 operating aircraft, an increase of 17 aircraft year-over-year [2] - The airline plans a capacity growth of around 4% for 2026, with revenue growth guidance of 7.5% to 9.5% and an adjusted EBITDA margin of 28.5% to 30.5% [5][20] - Premium revenue accounted for about 42% of total revenues, significantly above pre-pandemic levels, indicating strong demand from corporate and high-income leisure travelers [8] Financial Results - Aeromexico reported total revenue of $5.4 billion in 2025, a 2% increase compared to 2024, with fourth-quarter revenue reaching $1.4 billion, up 3% year-over-year [10][11] - The airline achieved record adjusted EBITDA of $1.7 billion for the full year, with a 31% margin, and fourth-quarter adjusted EBITDA of $502 million, representing a 35% margin [13] - Operating income for 2025 was $928 million with a 17% margin, while fourth-quarter operating income was $303 million with a 21% margin, both marking strong performance [14] Customer Engagement and Loyalty - The share of customers participating in Aeromexico's loyalty program reached a record 37% in the fourth quarter, up seven points year-over-year [9] - The airline plans to launch a new co-branded credit card program with Invex effective June 1, 2026, enhancing customer engagement [9] Regulatory and Market Challenges - Aeromexico faces regulatory constraints on U.S. route expansion from Mexico City until the U.S. Department of Transportation resolves Open Skies Agreement compliance issues [23] - The company is adapting to a stronger peso, which historically boosts travel demand, and is focused on leveraging its financial position through aircraft lease amortization and higher utilization [24]

Financial Data and Key Metrics Changes - Adjusted EBITDA margin reached 31%, the highest on record, while operating margin was 17%, representing the second strongest annual performance in the company's history [7] - Total revenue for 2025 was $5.4 billion, a 2% increase over 2024, excluding extraordinary non-recurring items [19] - Adjusted EBITDA for the full year reached $1.7 billion with a 31% margin, the highest margin in the company's history [20] - Full year operating income was $928 million, with a 17% margin, the second-best annual performance in the company's history [21] Business Line Data and Key Metrics Changes - Passenger revenue declined 4.4% year-over-year for the full year 2025, but increased by 4.3% year-over-year in the fourth quarter [13][14] - Premium revenue now represents approximately 42% of total revenues, nearly 17 points above pre-pandemic levels [10] - Premium unit revenue growth was 6 points above the main cabin on a year-over-year basis in the fourth quarter [15] Market Data and Key Metrics Changes - Demand strengthened in the second half of 2025, particularly in the last quarter, supported by improving traffic trends across both domestic and international markets [7] - The U.S. market saw passenger unit revenue up 5% year-over-year in the fourth quarter [14] - Corporate and high-income leisure segments continued to perform strongly, contributing to the overall revenue growth [10] Company Strategy and Development Direction - The company plans to grow capacity around 4% with a disciplined approach, focusing on resilient markets and prioritizing profitability [10] - Aeroméxico is selectively expanding its long-haul network, launching new routes to Barcelona and Paris [10] - The company aims to enhance customer experience through investments in technology and infrastructure, including a new app and improved check-in models [8][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate changes and capture opportunities, expecting to build on the momentum generated in the second half of 2025 [9] - The Mexican economy is expected to grow between 1.2% and 1.5% in 2026, which supports the company's growth expectations [24] - The company anticipates revenue growth in the range of 7.5%-9.5% for 2026, with adjusted EBITDA margins expected between 28.5% and 30.5% [24] Other Important Information - Aeroméxico was recognized as the world's most on-time airline for the second consecutive year [8] - The company returned over $200 million to shareholders through capital disbursements in 2025 [23] - Cash and cash equivalents totaled $1 billion as of December 31, with total liquidity standing at approximately $1.2 billion [23] Q&A Session Summary Question: Demand impacts related to FX and purchasing power dynamics in Mexico - Management noted that a stronger Mexican peso typically leads to increased demand for travel, with historical trends showing a quick response in bookings [29][31] Question: Opportunities for deleveraging the business - Management indicated that the main opportunity for deleveraging comes from the present value of leases, with expectations of lower leverage through higher EBITDA and amortization of lease debt [33][35] Question: Sale of MRO joint venture and its impact on P&L - The MRO facility was sold to a third party, resulting in a profit of $71 million in the P&L, with maintenance operations continuing under a commercial agreement [40][42] Question: Regulatory situation regarding U.S. routes from Mexico City - Management confirmed that new routes cannot be added until the U.S. government lifts restrictions, but noted that existing capacity has grown significantly in recent years [65] Question: Guidance assumptions for FX and jet fuel prices - The company assumes an average exchange rate of around 18.3 pesos per dollar and a fuel price of approximately $69 per barrel for guidance [58] Question: Premium revenue growth expectations - Management expects continued growth in premium revenue, driven by consumer demand for better experiences and improved sales strategies [79]

Financial Data and Key Metrics Changes - Adjusted EBITDA margin reached 31%, the highest on record, while operating margin was 17%, representing the second strongest annual performance in the company's history [7] - Total revenue for 2025 was $5.4 billion, a 2% increase over 2024, excluding extraordinary non-recurring items [19] - Adjusted EBITDA for the full year reached $1.7 billion with a 31% margin, and for the fourth quarter, it was $502 million with a margin of 35%, the highest quarterly EBITDA on record [20][21] Business Line Data and Key Metrics Changes - Passenger revenue for the full year declined 4.4% year-over-year, but in the fourth quarter, it increased by 4.3% year-over-year [13][14] - Premium revenue now represents approximately 42% of total revenues, nearly 17 points above pre-pandemic levels [10] Market Data and Key Metrics Changes - Demand strengthened in the second half of 2025, particularly in the last quarter, supported by improving traffic trends across both domestic and international markets [7] - The European market showed particularly strong performance in the fourth quarter, with passenger unit revenue up 5% year-over-year in the U.S. portfolio [14] Company Strategy and Development Direction - The company plans to grow capacity around 4% with a disciplined approach, focusing on resilient markets and prioritizing profitability [10] - Aeroméxico is selectively expanding its long-haul network, launching new routes to Barcelona and Paris [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate changes and capture opportunities, expecting to build on the momentum generated in the second half of 2025 [9] - The Mexican economy is expected to grow between 1.2% and 1.5% in 2026, with revenue growth projected in the range of 7.5%-9.5% [24] Other Important Information - The company maintained industry-leading reliability and was recognized as the world's most on-time airline for 2025 [8] - Aeroméxico returned over $200 million to shareholders through capital disbursements in 2025, demonstrating a commitment to delivering shareholder value [23] Q&A Session Summary Question: Demand impacts related to FX and purchasing power dynamics in Mexico - Management noted that a stronger Mexican peso typically leads to increased demand for travel, with a quick response in booking trends [29][31] Question: Opportunities for deleveraging the business - Management indicated that the primary opportunity for deleveraging comes from the present value of leases, with expectations of lower leverage through higher EBITDA and amortization of lease debt [33][35] Question: Sale of MRO joint venture and its impact on P&L - The MRO facility was sold to a third party, resulting in a profit of $71 million, with minimal impact on maintenance expenses due to existing commercial agreements [40][42] Question: Regulatory situation regarding U.S. routes from Mexico City - Management confirmed that new routes cannot be added until the U.S. government lifts restrictions, but noted that existing capacity has grown significantly in recent years [65][66] Question: Guidance assumptions for FX and jet fuel prices - The company assumes an average exchange rate of around 18.3 pesos per dollar and a jet fuel price of approximately $69 per barrel for guidance [58][59] Question: Premium revenue growth expectations - Management expects continued growth in premium revenue, driven by consumer demand for better experiences and improved sales strategies [79]

Financial Data and Key Metrics Changes - For the full year 2025, total revenue reached $5.4 billion, a 2% increase over 2024, excluding extraordinary non-recurring items [20] - Adjusted EBITDA for the full year was $1.7 billion with a margin of 31%, the highest in the company's history [22] - Operating income for the full year was $928 million, with a 17% margin, marking the second-best annual performance [23] - In Q4 2025, adjusted EBITDA reached $502 million with a margin of 35%, the highest quarterly EBITDA on record [23] Business Line Data and Key Metrics Changes - Passenger revenue for the full year declined 4.4% year-over-year, while passenger unit revenue declined 4.9% due to currency and economic headwinds [14] - In Q4, passenger revenue increased by 4.3% year-over-year, and passenger unit revenue rose by 6.2% [15] - Premium revenue now represents approximately 42% of total revenues, nearly 17 points above pre-pandemic levels [12] Market Data and Key Metrics Changes - The U.S. market saw improvements with passenger unit revenue up 5% year-over-year in Q4 [15] - European performance was particularly strong in Q4, indicating a stretching of demand into traditionally weaker periods [15] Company Strategy and Development Direction - The company plans to grow capacity by around 4% in 2026, focusing on resilient markets and prioritizing profitability [12] - Investments in fleet modernization and customer experience enhancements are ongoing, including the rollout of a new app [9] - The company aims to maintain its position as the only true premium product in Mexico while increasing long-term shareholder value [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong results despite ongoing regulatory constraints affecting U.S. operations [9] - The outlook for 2026 includes expected revenue growth of 7.5%-9.5% and adjusted EBITDA margins between 28.5% and 30.5% [26] - The Mexican economy is projected to grow between 1.2% and 1.5% in 2026, which supports the company's growth expectations [26] Other Important Information - The company was recognized as the world's most on-time airline for the second consecutive year [10] - A significant cash flow generation of $913 million was reported for the full year, providing financial flexibility for investments and debt reduction [24] Q&A Session Summary Question: Impact of FX on Demand - Management noted that a stronger Mexican peso typically leads to increased travel demand, with a quick response in booking trends [30][32] Question: Deleveraging Priorities - The company plans to focus on amortization of lease debt and operational leverage to reduce leverage over time [34][35] Question: Sale of MRO Joint Venture - The MRO joint venture was sold to a third party, with Delta retaining its 50% stake, and the sale resulted in a profit of $71 million [39][41] Question: Regulatory Restrictions on U.S. Routes - Current restrictions prevent adding new routes from Mexico City to the U.S., but management is optimistic about resolving these issues soon [53][55] Question: Guidance Assumptions - The company expects an average exchange rate of 18.3 pesos per dollar and a fuel price of around $69 per barrel for guidance [58] Question: Premium Revenue Growth - Management anticipates continued growth in premium revenue, driven by consumer demand for better experiences and improved sales strategies [78]

Certain information in this presentation has been obtained from outside sources. While such information is believed to be reliable for the purposes used herein, no representations are made by the Company, any of the Company's affiliates or advisors as to the accuracy or completeness thereof, and the Company takes no responsibility for such information. This information is current only as of its date and may have changed. The Company undertakes no obligation to update this information in light of new informa ...

Core Insights - Grupo Aeroméxico reported strong financial results for 4Q25 and FY25, highlighting a recovery trend in the second half of the year, with record Adjusted EBITDAR and operational reliability recognized by CIRIUM as the world's most on-time airline for the second consecutive year [2][5][6]. Financial Highlights for 4Q25 - Total revenue reached $1.4 billion, a 0.2% increase year-over-year, with a 3.4% increase when excluding extraordinary items from 2024 [5][14]. - Adjusted EBITDAR totaled $501.6 million, with a margin of 34.9%, marking the highest EBITDAR and margin in the company's history [5][24]. - Operating income was $303.1 million, with a margin of 21.1%, the best performance for a fourth quarter on record [5][25]. - Cost per ASM excluding fuel (CASM-Ex) was 10.4¢, a 5.9% increase compared to 4Q24 [5][20]. Financial Highlights for FY25 - Total revenue for FY25 was $5.4 billion, a 4.6% decrease compared to 2024, with a 1.9% decrease when excluding extraordinary items [5][16]. - Adjusted EBITDAR for FY25 was $1.7 billion, with a margin of 31.2%, the highest in the company's history [5][26]. - Operating income totaled $928.1 million, with a margin of 17.3%, marking the second-best yearly performance [5][28]. - Total operating expenses for FY25 were $4.4 billion, a 2.7% decrease compared to 2024 [5][22]. Operational Highlights - Aeroméxico's capacity, measured in available seat miles (ASMs), decreased by 1.8% year-over-year in 4Q25, while FY25 saw a slight increase of 0.5% [5][6]. - The load factor on scheduled flights improved to 87.2% in 4Q25, up from 85.5% in 4Q24 [5][55]. - The company served 6,168 thousand passengers in 4Q25, a decrease of 1.3% compared to the same quarter in 2024 [5][55]. Outlook for 1Q26 and FY2026 - Guidance for 1Q26 indicates a total revenue of approximately $1.30 billion to $1.33 billion, with a year-over-year increase of 10.0% to 12.0% [7]. - For FY2026, total revenue is expected to be between $5.77 billion and $5.88 billion, with a year-over-year increase of 7.5% to 9.5% [7].