Category Archives: AeroMexico

AeroMexico produces a $162.6 million net profit in 2011

AeroMexico (Mexico City) had a good year in 2011. The Mexican carrier produced a net profit of $162.6 million (US).

Here is the full financial report by the company:

Grupo Aeromexico, S.A.B. DE C.V. (Mexico City) (Grupo Aeromexico or the Company), the largest intercontinental airline in Mexico, today reported consolidated unaudited results for the fourth quarter and full year of 2011. The following is a summary of consolidated financial and operating information from Grupo Aeromexico’s unaudited financial statements for the quarter and the full year ended December 31, 2011 and audited financial statements for the quarter and year ended December 31, 2010.

Grupo Aeromexico reported a net income of MXP $2,081 million for the full year 2011. After excluding special items, net income reached a total of MXP $ 1,873 million, surpassing full year net income adjusted for special items of MXP $ 565 million in 2010.
In 2011, Grupo Aeromexico achieved a record operating profit of MXP $3,429 million, which represents 27% growth year-over-year. The Company maintained an operating margin of 9.6%; the same level as that of 2010, despite the increase in fuel prices, and the global economic slowdown and financial volatility of 2011.
These positive results were due to strong growth in passenger numbers, which then increased Grupo Aeromexico’s load factor, yield and overall market share to record-high levels.
Net income for the fourth quarter 2011 was MXP $208 million, which was lower than net income for the fourth quarter of 2010. However, a non-recurring revenue of MXP $1,289 million was recorded in the last quarter of 2010 related to deferred taxes. Excluding the aforementioned, net income for the fourth quarter 2011 was above of the recurrent net income of MXP $ 11 million of the fourth quarter 2010, despite the 40% increase in fuel cost.
Quarterly EBITDAR was MXP $1,847 million; 21% below that of the fourth quarter 2010. Operating profit for the fourth quarter 2011 was MXP $810 million, 44% less than the fourth quarter of the previous year. These results reflect the pressure of increased fuel costs in 2011 and the exceptional traffic of the fourth quarter of 2010 due to the consolidation of the Mexican aviation industry.
Load factor for 2011 was 78.4%; the highest yearly level in the Company’s history. The quarterly load factor was 78.1%, 2.4 percent points below the fourth quarter of 2010.
Total revenues for 2011 were MXP $35,808 million; up 28% year on year. During the quarter, total revenues increased 12% to a total of MXP $9,651 million. These results were largely due to an increase in passenger traffic and improved cargo revenues.
Unit cost, or CASK (Cost per Available Seat Kilometer), excluding fuel costs, decreased by 3% in 2011, due to the Company’s commitment to a policy of expense rationalization and improved operating efficiency. Year over year, the Company maintained the same CASK excluding fuel levels during the fourth quarter, despite exchange rate depreciation in the fourth quarter 2011.
The Company received four Embraer 190, six Boeing 737 and one Boeing 767 aircraft throughout the year, as part of its expansion plan.
At the end of 2011, Grupo Aeromexico’s cash position was MXP $4,100 million; 209% higher than the net balance as of December 31, 2010. Therefore, net financial debt, which deducts the unrestricted cash position from financial debt, ended with a negative balance of MXP $ 921 million, decreasing from the positive balance of MXP $911 at the end of 2010.

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AeroMexico is coming to Atlanta on July 1 from Mexico City

AeroMexico (Mexico City) will add Atlanta and the Mexico City-Atlanta route on July 1, linking it with partner Delta Air Lines. The new route will be operated with Boeing 737-700s per Airline Route.

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Delta and AeroMexico expand their commercial relationship, Delta will invest $65 million in AeroMexico

AeroMexico Boeing 737-852 WL EI-DRC (msn 35116) MIA (Brian McDonough), originally uploaded by Airliners Gallery.

Delta Air Lines (Atlanta) and Grupo AeroMexico (Mexico City) announced a tentative agreement for a long-term, exclusive commercial alliance. Under the agreement, Delta and AeroMexico will expand cooperation to leverage each other’s strengths and link Delta’s expansive network with Mexico’s largest passenger network. As part of the agreement, Delta also will invest $65 million in AeroMexico.

Under terms of the Memorandum of Understanding (MOU), Delta will invest $65 million in exchange for ordinary shares in Grupo AeroMexico, made up of treasury stock set aside as part of AeroMexico’s primary public offering April, 14, 2011. Delta also will gain a seat on the Aeromexico board of directors. The transaction is subject to approval from certain Mexican regulators.

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AeroMexico operates a biofuel flight between Mexico City and Madrid

AeroMexico Boeing 777-2Q8 ER N776AM (msn 28692) MAD (Ariel Shocron), originally uploaded by Airliners Gallery.

AeroMexico (Mexico City) yesterday (August 1) operated a biofuel flight between Mexico City and Madrid.

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AeroMexico to add new routes, increase capacity

AeroMexico Boeing 737-752 WL XA-GMV (msn 5118) (Tarjeta Aeromexico Banamex) LAS (Eddie Maloney), originally uploaded by Airliners Gallery.

AeroMexico (Mexico City) as of April 4, 2011 will begin operating daily flights between Guadalajara and Fresno, California and between Monterrey and Mexicali on a Boeing 737. There will also be daily flights between Guadalajara and Hermosillo, on an Embraer ERJ 145, and an overnight flight from Culiacan to Mexicali on an Embraer ERJ 190 operated by AeroMexico Connect.

Also beginning on the same date, AM routes between Mexico City and Mazatlan, Mexico City and Ciudad del Carmen, and Mexico City and Veracruz will be offering a greater passenger capacity, thanks to new planes that will be larger than the planes currently traveling those routes. There will also be additional flights between Hermosillo and Mexicali, Tijuana and Hermosillo, as well as Mexico City and Tapachula.

As of May 9, there will be an increase in the frequency of flights on several routes that are already running. AeroMexico will add another flight to the Mexico City – Campeche connection, the Monterrey – Veracruz connection, and two more flights between Mexico City and Oaxaca, which will amount to 40 connections a week to the city.

AeroMexico reaches a new collective agreement with its pilots, will now order 25 new aircraft

AeroMexico Boeing 777-2Q8 ER N776AM (msn 28692) MAD (Ariel Shocron), originally uploaded by Airliners Gallery.

AeroMexico (Mexico City) has announced it had reached an agreement with its pilots to amend Aeromexico’s collective labor agreement that will allow it to increase the current task force’s productivity and establish highly competitive conditions for all new pilots. As a result the company intends to order 25 new aircraft in the coming months.

AeroMexico to restore its code-share flights with Delta, increases flights

AeroMexico Boeing 737-752 WL XA-GOL (msn 35785) MIA (Bruce Drum), originally uploaded by Airliners Gallery.

AeroMexico (Mexico City) will reestablish its code share flights with Delta Air Lines, its U.S. airline partner as of December 11, 2010. The airline will reinstate its 45 daily code share flights with Delta.

The Mexican carrier is now increasing the number of flight to the United States. The new daily service Aeromexico recently announced to New York effective as of December 6 (one additional flight for a total of four daily Aeromexico flights in the market), Miami (one additional flight for a total of four daily Aeromexico flights in the market), Chicago (one additional flight for a total of three daily Aeromexico flights in the market), Los Angeles (one additional flight for a total of five daily Aeromexico flights in the market), and Las Vegas (one additional flight for a total of two daily Aeromexico flights in the market), are now part of the airline’s permanent schedule.

AM will also add two daily frequencies to San Antonio, TX as of January 11, 2011. This added service will raise Grupo Aeromexico’s offering between Mexico and the USA to 434 weekly flights.

AeroMexico increases U.S. flights, returns to Denver and Ontario, CA

AeroMexico Boeing 737-852 WL EI-DRC (msn 35116) MIA (Brian McDonough), originally uploaded by Airliners Gallery.

AeroMexico (Mexico City) on December 6 will operate more frequencies to/from the following cities: New York, Las Vegas, Los Angeles, Miami and Chicago.

Additionally, the airline will reestablish its seasonal service from Denver to Mexico City and from Ontario, CA to Guadalajara, both routes will be operated with Boeing 737 equipment.

The flights to and from Denver begin on December 15 and operate through April 2011. These flights will depart Denver at 11:30 a.m. (1130) arriving in Mexico City at 4:05 p.m. (1605), and from Mexico City flights depart at 07:30 a.m. (0730) arriving in Denver, at 10:20 a.m. (1020) on Wednesday, Saturday and Sunday.

Daily operations between Ontario, CA and Guadalajara will resume on November 20, departing from Ontario at 1:15 a.m. (0115) and arriving in Guadalajara at 6:50 a.m. (0650). The flight from Guadalajara departs at 10:30 p.m. (2230) arriving in California by 11:50 p.m. (2350).

FAA: Mexico does not meet ICAO safety standards

U.S. Department of Transportation’s Federal Aviation Administration (FAA) (Washington) yesterday (July 30) announced that Mexico is not in compliance with international safety standards set by the International Civil Aviation Organization (ICAO), following an assessment of the country’s civil aviation authority. As a result, the United States is downgrading Mexico from a Category 1 to Category 2 rating.

With the IASA Category 2 rating, Mexican air carriers cannot establish new service to the United States, although they are allowed to maintain existing service.

A Category 2 rating means a country either lacks laws or regulations necessary to oversee air carriers in accordance with international standards, or that its civil aviation authority – equivalent to the FAA for aviation safety matters – is deficient in one or more areas, such as technical expertise, trained personnel, record-keeping or inspection procedures.

As a result AeroMexico issued this statement:

“Regarding the announcement released today by the Federal Aviation Administration (FAA), which informed Mexico’s downgrade from a Category 1 to a Category 2 in their safety ranking, Grupo Aeroméxico issues the following statement:

1. The downgrade to Category 2 is a result of an audit performed by the FAA to the Civil Aeronautics Board (DGAC) of Mexico. The result of this audit exclusively refers to the Mexican aeronautics authority and does not reflect the level of safety that national airlines maintain.

2. Aeromexico and its affiliate company Aeroméxico Connect are routinely audited by the FAA in all of its outbound operations to the United States, as is its affiliate, Aeromexico Connect and the highest international standards of operational safety are always fulfilled. Aeromexico is the first Mexican airline that has received its third consecutive IOSA (IATA Operational Safety Audit) re-certification given by the International Air Transport Association, IATA.

3. Aeromexico collaborates with American authorities in other safety programs such as the Transportation Security Administration’s (TSA) “Prevention Against Acts of Illegal Interference Program” and the Customs and Border Protection’s (CBP) “Security Program”.

Cargo operations have been certified in theft and terrorism prevention by the Customs-Trade Partnership Against Terrorism (C-TPAT), and the airline is an active member of the International Society of Air Safety Investigators (ISASI), a world-wide association committed to promoting the prevention of accidents and air incidents.

4. As founding member of SkyTeam, the global airline alliance, in which 13 airlines participate, Aeromexico is required to comply with security standards in order to operate the codeshared flights with other partners.

Within this alliance, US carrier Delta Airlines performed annual security-related audits to Aeromexico from 1994 until 2006. The global security standard IOSA was established as a requirement since 2006 and Aeromexico proudly holds this standard since its inception.

The measure announced by the FAA, doesn’t imply any changes in the operations to / from the United States by Aeromexico and its affiliated companies and all flights continue to operate normally.

Aeromexico will cooperate with the aeronautics authority to reestablish the Category 1 rating and will work hard to mitigate the effects and inconveniences that this measure could cause its passengers in Mexico and the US.

All domestic operations of Aeromexico as well as flights to Central and South America, Europe and Asia will remain unaffected.”

AeroMexico’s Paris-Mexico City flight diverts to Montreal

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AeroMexico’s (Mexico City) flight AM 006 operating from Paris (CDG) to Mexico City yesterday (May 31) diverted to Montreal (Trudeau). U.S. authorities denied transit through U.S. airspace due to the detection on board of a passenger who is on the U.S. no-fly list.

Press release:

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