Aeromexico Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Total Revenue: Approximately $1.5 billion, up 30% year-over-year.

EBIT Margin: 5%, with adjusted EBITDA of $260 million (18% margin).

Total ASMs: Increased by 1.9% year-over-year.

TRASM: Increased by 10.5% year-over-year, driven by strong international passenger revenue.

Operating Cash Flow: Approximately $362 million, with liquidity exceeding $1 billion.

Net Debt: Adjusted net debt decreased compared to the same period last year.

2Strategic Updates and Business Highlights

Capacity Management: Capacity increased by 2% year-over-year, with adjustments made to align with market conditions.

New Routes: Launched two long-haul routes (Mexico City to Barcelona and Monterrey to Paris).

Premium Revenue: Reached 43% of total revenue, marking a record high for Aeromexico.

Customer Engagement: 39% of passengers participated in Aeromexico Rewards, up 7 percentage points year-over-year.

Operational Excellence: Achieved top on-time performance among global food service carriers.

3Forward Guidance and Outlook

Q3 and Q4 Expectations: Anticipate higher EBITDAR and EBIT compared to the same periods in 2025, with EBIT margins projected in the low double-digit range.

Capacity Growth: Expected to reach high single-digit growth year-over-year in Q4, supported by new aircraft deliveries and increased slots at Mexico City International Airport.

Full Year Projections: Total revenue growth of 13-14% versus 2025, with adjusted EBITDA margins of 20.5% to 26.5% and operating margins of 11-13%.

4Bad News, Challenges, or Points of Concern

Fuel Costs: Experienced a $220 million increase in operating costs due to volatile fuel prices, with a $30 million incremental cost pressure compared to prior guidance.

World Cup Impact: Estimated a $24 million revenue loss in June due to shifts in travel patterns related to the World Cup, though overall revenues remained strong.

Competitive Landscape: Mixed capacity adjustments among competitors could lead to pricing pressures; Aeromexico plans to remain flexible in capacity management.

5Notable Q&A Insights

World Cup Revenue Impact: The World Cup had a temporary negative effect on domestic revenue in June, but demand has rebounded strongly in July and is expected to continue improving.

Fuel Cost Recovery: Achieved a 75% recovery of increased fuel costs in Q2, with expectations to recover more in the second half of the year.

Competitive Environment: Noted rationalization of capacity in the domestic market, with Aeromexico prepared to adjust capacity based on market conditions.

Credit Card Program: The transition to the new Aeromexico Inbursa co-branded credit card is on track, with positive early trends in customer adoption.

Labor Negotiations: Ongoing discussions with flight attendants are expected to reach a resolution by the end of July, with confidence in a favorable outcome. This summary encapsulates Aeromexico's performance and strategic direction for Q2 2026, highlighting both achievements and challenges faced in the current operating environment.