Grupo Aeromexico Q4 Earnings Call Highlights

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]