Grupo Aeromexico S.A.B. de C.V. (Aeromexico) (BMV: AEROMEX) has reported a 4.9% decrease in capacity, measured in available seat kilometers (ASKs), in the fourth quarter 2019, resulting from the temporary grounding of the 737 MAX aircraft, the company said.
During the quarter Aeromexico reached a partial confidential compensation agreement with Boeing to mitigate the financial impact arising from the temporary grounding of the airline´s Boeing 737 MAX aircraft.
Grupo Aeromexico´s fourth quarter 2019 revenue reached MXN 17.2 billion, a 6.7% year-on-year decrease. During the quarter Revenue per ASK (RASK) in dollars increased by 0.9% and yield in dollars increased by 1.2% compared to the same period of 2018.
Year-on-year Cost per ASK (CASK) in dollars decreased by 8.4% and CASK excluding fuel in dollars decreased 8.2%, highlighting Grupo Aeromexico´s ongoing focus on optimizing unit costs.
Fourth quarter EBITDAR reached MXN 4.7 billion, an increase of MXN 2.3 billion year-on-year. EBITDAR margin was 27.2%.
For the fourth quarter of 2019, Grupo Aeromexico reported an operating profit of MXN 1.7 billion pesos, equating to a 10.1% operating margin. This is a MXN 2.7 billion peso year-on-year improvement compared to the same period of 2018.
Aeromexico reported a net loss of MXN 57 million pesos for the fourth quarter 2019 for a negative net margin of 0.3%.
For full year 2019, Grupo Aeromexico revenue reached MXN 68.8 billion pesos, a 2.1% year-on-year decrease compared to the same period of 2018. Grupo Aeromexico delivered an operating profit of MXN 2.8 billion pesos, equating to 4.0% operating margin. The Company reported a net loss of MXN 2.4 billion pesos.
Fourth quarter cash flow generation was positive with MXN 4.3 billion pesos in incremental cash flow generated from operating activities. Aeromexico´s cash position as of December 31st, 2019 was MXN 9.1 billion pesos. This brings Aeromexico´s cash to last-12-month revenue ratio to 13.2%.
During the quarter, the Company received four aircraft: one Boeing 787-9 and three Boeing 737-800s. As of December 31st, 2019 Grupo Aeromexico´s operating fleet comprised 125 aircraft, excluding the six Boeing 737 MAX aircraft temporarily grounded. Boeing has expressed that it expects the aircraft to be re-certified by the Federal Aviation Administration (FAA) during summer 2020.
Grupo Aeromexico, S.A.B. de C.V. is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. Aeromexico, Mexico´s global airline, operates more than 600 daily flights and its main hub is in Terminal 2 at the Mexico City International Airport. Its destinations network features more than 80 cities on three continents, including 42 destinations in Mexico, 18 in the United States, 15 in Latin America, 4 in Canada, 5 in Europe and 2 in Asia.